Monday, August 11, 2014

State deferred compensation

For those of us who might be working in any shape of form for the State ( NY/NJ/CT etc..), and not necessarily full time- enough to get a small paycheck, which is often the case if your work for the " XXX State University Hospital" in any capacity:
you might be eligible to contribute to your  State deferred compensation program. No match, of course, by the State- just your own hard-earned, but pretax dollars. And that's on top of your annual limit of  $17,500 for 2014 you might be  already contributing to your private 401(k) through the "private" part of your work, up to the limit of, yes, another $17,500, totaling  $35,000/yr (without counting the match, or contributions by your employer). Now, that's a retirement planning!
(Anecdotally, most people who work for the State never heard of this, by the way)

Most mutual fund there are (relatively) decent, with low expense ratios, and they have my beloved index funds- by the way, yet another study came out showing how "great" active mutual fund managers are performing in the long run..  Will write about it in the next post...

Here's a website for those fortunate ones in NY State:

And for NJ:

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