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April 27, 2020

California teacher asks a vendor question.

From 403bwise group

Hi All! Current California educator with some questions regarding investments:

I was previously employed at a school that offered a 457(b) with a match. Upon starting a new job, I opened a 403(b) through CalSTRS Pension 2 since my 457(b) was previously with them. Having read the Simple Path to Wealth, it seems like Vanguard has been a popular choice and has greater investment options. My school does also offer Vanguard as an option for 403(b).

Would you all:

  • Stay with CalSTRS Pension 2 but go with a more aggressive portfolio?
  • Switch my current 403(b) to Vanguard's 403(b)?
  • Switch to Vanguard's Roth 403(b)?
  • Open up a ROTH IRA with Vanguard instead?
  • What are the benefits of one vs the other? Also, would you recommend rolling the existing 457(b) or leaving it where it is?

I would like to grow my investments since I lacked awareness and my 457(b) was conservatively invested (i.e. did not grow).

Thank you in advance!

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