Steps to set up your PSD 457(b).

Note: Other districts will likely work with PERA to set up a PERA457. Ask us for help if you need it.

 

Note: These steps are only for educational purposes.  Please call Empower retirement to verify these instructions and to make sure you have completed the steps correctly.  In this example, I demonstrate how to mimic a Vanguard target date fund using four Vanguard index funds.

Step 1:

 To enroll in or change your contribution amount in the 457 plan, you must use the online enrollment system at www.gwrs.com or call 877-816-0548 (option 3). The change will be effective the following month.

Step 2:

Log into the Empower website and select your payroll contribution.  Notice, in this example I selected 20% of my paycheck.  This means that 20% of my paycheck will be contributed to my 457(b).

Step 3:

Click on the Poudre School District 457 Deferred Comp Plan Link.

Step 4:

Click on View/Manage my investments.

Step 5: 

Click on change my investments.

Step 6:
Check: Change how my future contributions will be invested.

Step 7:
Click choose individual funds.

Step 8:
Click +Add/View all Funds.

 Step 9:
Check all of the desired funds.  In this example, I am selecting the Vanguard funds to make my own target date fund (Vanguard total US stocks, total international stocks, total US bonds, and total international bonds).  Click Add. See my previous post for instructions on mimicking target date funds.

Step 10:

Type or use the sliders to enter your desired asset allocation.  Note: In this example, I'm mimicking the Vanguard 2065 target date fund.  See my previous post on mimicking target date funds and life strategy funds.  Click the submit button when you are finished.

Step 11:
Check the Allocate my current account balance to the investment allocations selected below box (if desired).  This will change any of your existing funds to this asset allocation.  Note: Each year, you will need to re-visit the Vanguard Target Date page, record the most recent allocations, and repeat steps 1-11.  Failure to do this each year will leave your selections at the current percentages and may place you in an asset allocation that is too aggressive for your age.

Step 12:
Call Empower and make sure that you performed all the steps correct.

Notes:

Here are approximate life strategy funds as they appeared on the Vanguard website (1/31/20).  Please check them for accuracy.  Revisit the Vanguard site each year for updated allocations.

Here are approximate target date funds as they appeared on the Vanguard website (1/31/20).  Please check them for accuracy.  Revisit the Vanguard site each year for updated allocations.

Nothing presented is to be construed as investment advice. Investment advice can be secured from a vetted Certified Financial Planner (CFP®).

When working with a CFP®, it is recommended that s/he sign a Fiduciary Pledge. More information, including questions to ask a planner and a downloadable Fiduciary Pledge, can be found here: https://403bwise.org/education/professional
As the author, I make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this blog and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. You are solely responsible for your own choices. There are absolutely no guarantees here.