A 457 retirement plan is a way for you to invest in your future by using tax benefits and compound interest. Some people refer to it as “Deferred comp” or “Deferred Compensation Plan”. It’s very similar to a 401k with a few small differences we’ll discuss in this video. As of 2021 you can contribute up to $19,500 into your 457 plan. If you are age 50+ you can do more, up to $26,000/year. You can choose to do either a Roth 457 or Traditional 457, or both (the total of both cannot exceed $19,500). Usually there is no match with a 457b because they typically supplement a pension plan. However, if your 457 does offer a match take full advantage of it, it’s free money! You’re allowed to combine a 457b with a IRA, 401k, or 403b. It is common to do a large amount in your 457b and max out a roth IRA as well ($6,000/year). One unique benefit to a 457b is you can withdraw the money as soon as you leave your employer, unlike a 401k where there is a 10% penalty. Any withdrawals from a traditional 457b will be taxed and any withdrawals from a roth 457b will be taxed unless you’re age 59.5+. A common question I get is can you borrow from your own 457 plan, typically yes but you will have to pay back the money plus interest. Also, you put yourself at risk that if you leave your employer and still owe a balance on the loan it will be due in full immediately.

Enjoy the video!

Connect with Sebastian:
– Instagram: –
– Facebook:
– LinkedIn:

Sebastian Guerra has met with nearly 10,000 families one on one over the last 15 years and given over 300 educational trainings to more than 9,000 people on the topics of Retirement Income Planning, Investment Managemmet, Real Estate Investing, Tax Strategies/Loopholes, Healthcare Protection, Estate Planning, and much more in regards to business and personal development.

As a Partner and Co-Founder of South Florida’s #1 Wealth Management Firm, Guerra Financial Group, he works side by sde with his brother and father on helping families “Be Retirement Ready!” With a team of over 30 financial professionals, Guerra Financial’s primary responsibility is for families to educate themselves on the topic of personal money management.

Visit www.guerrafinancial.com for more information.

Connect with Guerra Financial:
– Instagram:
– Facebook:
– LinkedIn:
– YouTube:
Information contained in this video is current to the date of publication, derived from sources believed to be accurate, and are subject to change. Neither the information nor opinions expressed herein constitute a solicitation for the purchase or sale of any securities. The information in this video is not intended as tax, financial or legal advice, and may not be relied on for the purposes of making any financial or investment decisions. Guerra Advisory Services provides advice and makes recommendations based on the specific needs and circumstances of each client. To view our Form ADV Part 2 Brochure, visit www.guerrafinancial.com. All concepts, strategies, or ideas are presented for educational purposes only and are not given as any form of advice or as any recommendation. Past results or strategies shared in this video are not a guarantee or implied guarantee of any future performance, returns, profit, or growth. Acting as a Fiduciary also does not guarantee, or imply any guarantee of, any level of investment performance or professional experience. Investors should thoroughly evaluate their financial objectives, goals, risks, costs, fees, expenses and personal parameters such as risk tolerance with a licensed Advisor before investing. Investing involves risk, including the risk of loss of principal. Investments and brokerage accounts are not FDIC insured. This material was written, produced, and prepared by Guerra Advisory Services. Copyright 2015 Guerra Advisors, Inc….(read more)

LEARN MORE ABOUT: Retirement Planning

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing