"HW "Skip" Weldon" <skip5700removethis[at]yahoo.com> wrote in message
news:u7ug84llhti68l434q114tmge365fr58e7[at]4ax.com...
- quote -

Skip, you are correct about the no early distribution penalty. That's why I
want to leave the money in the 457 until he turns 59.5. If I rollover, there
will be a penalty for early withdrawal. He gets a pension, I'll start SS
pretty soon, but we still need to supplement, and that money has to come
from somewhere!

Elizabeth Richardson

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On Jul 24, 7:47*am, "HW \"Skip\" Weldon"
<skip5700removet...[at]yahoo.com> wrote:

- quote -

The rollover kills the "NO early distribution penalty" benefit of the
457. I'm betting that's why she hasn't moved the money.

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On Wed, 23 Jul 2008 20:45:46 -0500, "Elizabeth Richardson"
<erichktn[at]worldnet.att.net> wrote:

- quote -

On separation of service our State's 457 is rollable to an IRA. Is
there something in your plan document or funds that prevent you doing
so?


-HW "Skip" Weldon
Columbia, SC

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On Wed, 23 Jul 2008 17:24:54 -0500, "Elizabeth Richardson"
<erichktn[at]worldnet.att.net> wrote:

- quote -

Another thing - I don't believe Public 457s are subject to premature
distribution penalties. Distribution is subject to separation of
service, and the funds themselves may involve surrender fees, but
there is no age 59.5 rule for 457s. If wrong, am fairly certain
someone will correct me. <g

-HW "Skip" Weldon
Columbia, SC

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"HW "Skip" Weldon"
- quote -

Yes, he worked for the local government, but no, we are both retired. Since
he is separated from service, these funds are available to us as long as we
don't transfer them to an IRA. This money is performing nearly, but not
quite, as well as some other money. Actually, I can (and should) transfer a
portion of it. I haven't yet done so because I don't feel an urgency and
also haven't yet determined how much to leave behind.

Elizabeth Richardson

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On Wed, 23 Jul 2008 17:24:54 -0500, "Elizabeth Richardson"
<erichktn[at]worldnet.att.net> wrote:

- quote -

Was the 457 created when he was with public employment (city, state,
school system, etc.)? And is he still with them?


-HW "Skip" Weldon
Columbia, SC

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"Gil Faver" <rowdy'sboss[at]xxyz.com> wrote in message
news:ebLhk.258601$SV4.184199[at]bgtnsc04-news.ops.worldnet.att.net...
- quote -

Sorry, I was thinking FSLIC. I don't use a brokerage. I don't invest in
individual issues. I have mutual funds invested through the mutual fund
company, except for some still in a 457, that needs to stay in that account
until my husband is over the age of 59.5. I may be wrong, but SIPC insurance
doesn't cover loss of the underlying issues anyway.

Elizabeth Richardson

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"Augustine" <evandro[at]mailinator.com> wrote in message
news:25d468d4-0db3-4737-9e14-35101992c7e5[at]u12g2000prd.googlegroups.com...
- quote -

If this is a concern, make sure that your securities are registered in your
name and not "street name".

"The statute that created SIPC provides that customers of a failed brokerage
firm receive all non-negotiable securities _that are already registered in
their name_ ... All other so-called 'street name' securities are distributed
on a pro rata basis. At the same time, ... the SIPC ... satisf[ies] the
remaining claims of each customer up to a maximum of $500K."
http://www.sipc.org/who/who.cfm

Obviously don't keep more than $100K in a broker's cash account. (Note that
a MMF is not a cash account; MM shares are securities, not brokerage debt.)

Keeping securities registered in your name generally means that (a) you will
not be able to buy on margin, and (b) the broker won't provide a dividend
reinvestment service (e.g. converting those ETF dividends into virtual
partial shares).

Many brokerages carry excess insurance above the SIPC limits, though I don't
believe the soundness of that insurance has been tested.

Here's a longer thread (including a Herb Greenberg column) on the same
subject:
http://www.irvinehousingblog.com/for...ewthread/2630/

Mark Freeland
nNeEwTs[at]nyc.rr.com

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"Elizabeth Richardson" <erichktn[at]worldnet.att.net> wrote in message
news:wOJhk.258423$SV4.5646[at]bgtnsc04-news.ops.worldnet.att.net...
- quote -

In the same vein, how about nearing the SIPC limits?

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"Augustine" <evandro[at]mailinator.com> wrote in message
news:25d468d4-0db3-4737-9e14-35101992c7e5[at]u12g2000prd.googlegroups.com...
- quote -

I wouldn't put my retirement funds in bank or like-institution insured
accounts.

Elizabeth Richardson

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On Jul 22, 5:39*pm, "Elizabeth Richardson"
- quote -

In the same vein, how about nearing the SIPC limits?

TIA

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- quote -

I'm thinking that it's a rare combination of those who have managed to
have high enough earnings to accrue that kind of money* in an IRA and a
lack of sophistication so all their funds are in cash. To that few
percent, I repeat the suggestion that they either A) buy brokered CDs at
a couple different banks, B) go to a second brick and mortar bank with
half their funds, or C) take a lesson from some regulars here (with a
nod to Elizabeth's post on this thread) and learn to invest, not just
squirrel away cash.

Not to get too pedantic, you have one IRA, it may be spread across
multiple accounts, but it remains one IRA.
Joe

*from http://assets.aarp.org/rgcenter/econ...05_boomers.pdf
I extrapolate that about 25% of baby boomers will have over $250K in
retirement accounts. A good chunk of that would be in 401(k) accounts.

www.blog.joetaxpayer.com

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"Elizabeth Richardson" <erichktn[at]worldnet.att.net> writes:
- quote -

Of course, it depends a lot on the risk tolerance and size of
the portfolio. But a portfolio with more than $250,000 in
CDs is either very very conservative (perhaps, as we've said,
dangerously so) -- or it's a very large portfolio (ie. large
enough that $250,000 is not such a huge piece of it).

Certainly if someone has that much in a retirement portfolio
in CDs, I should hope that he or she is getting some good
advice and knows about all the alternatives - and how easy
it is to diversify that out, either into other investments
or, if FDIC-insured CDs are the way to go, through options
like the brokerage CDs.

Given some of the tone of fear that has come into play
in the wake of IndyMac, I hope folks will react in a
moderate and thoughtful way and not worry too much -
but there's still no reason to go above the FDIC limits
and perhaps this is an opportunity to take advantage of the
headlines as a reminder to get folks to revisit their
allocations and make sure that their portfolios make
the most sense for their needs.


--
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"Augustine" <evandro[at]mailinator.com> wrote in message
news:add12599-edbb-4b06-b5e3-ad7677d5f469[at]s50g2000hsb.googlegroups.com...
- quote -

I think it would be extremely hard to go over $250k of CDs in an IRA. CDs
are not really the stuff of a long-term retirement portfolio, rather the
stuff from which you take income. If I were in jeopardy of exceeding the IRA
limit of FDIC insured products, I'd be looking for some other place to put
my future.

Elizabeth Richardson

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On Jul 21, 7:02*pm, joetaxpayer <joetaxpa...[at]nospam.com> wrote:
- quote -

I agree, but it's not hard to go over the $250,000 insurance limit for
IRA's. I guess then that it's better to start funding another IRA
when one reaches $200,000, right?

TIA

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joetaxpayer <joetaxpayer[at]nospam.com> writes:
- quote -

More than fair enough. In my original response to the poster
who started this thread, I emphasized means of keeping the
deposits under the FDIC limits. It's easy enough to do that
there's really no reason not to. Especially via the easy-to-access
brokered CDs.

FWIW, I wasn't cherry-picking. I just didn't go back that far.


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On Jul 21, 7:02*pm, joetaxpayer <joetaxpa...[at]nospam.com> wrote:

- quote -

Agreed. My posts were not meant to imply that people should not ignore
this potential risk. My point was to avoid taking on more likely risks
while endevouring to avoid the "risk de jour".

If the money is all ready at the bank, and "safe" investments match
the clients risk profile, then by all means take the necessary steps
to insure the funds. However, in the wake of indymac, there seemed to
be multiple posts suggesting that people were flocking to "safe"
investements when they otherwise shouldn't be.

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joetaxpayer <joetaxpayer[at]nospam.com> wrote:


- quote -

I strongly agree. My checking account has been at 6 different banks. Same
account, same account number, but 6 different banks. Half of the changes were
bank failures. The others were acquisitions.

Since I don't keep $100K in checking <grin> , it was seamless. One day the sign
over the door had one bank name, the next day a different name. But the checks
cleared, the deposit flowed through. No sweat.

-- Doug

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BreadWithSpam[at]fractious.net wrote:
- quote -

From
http://www.fdic.gov/bank/historical/history/vol1.html
(part 1 sec 1 page 15)

From 1984-1994, 1,617 banks failed, 9.14% of all banks, containing
8.98% of total bank assets. I call these numbers high enough that I
direct clients to not risk having their money above the FDIC limits that
may apply to them. The effort to maintain multiple accounts seems too
minor compared to the risk of being left with uninsured funds.
Joe

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On 2008-07-16 11:50:25 -0700, BreadWithSpam[at]fractious.net said:

- quote -

In the early 80's, if someone had asked the same question about savings
and loan associations, the answer would also have been "very very few."
The trick is to plan for unusual and unexpected events that have never
happened before.

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