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What is a 457(b)?

A governmental 457(b) program is a tax-deferred investment account designed for state and local government employees, such as public school employees, police officers and firefighters. These accounts encourage individuals to prepare for their own retirement.
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Why consider a 457(b)?

We all need to supplement Social Security and pension benefits with personal retirement savings to help provide the level of income that we will need in retirement. This is especially true with longer life expectancies and fewer employers offering traditional pension benefits. A 457(b) can help provide government employees with a tax-deferred investment account that offers the potential for retirement savings growth

What are the advantages?

Pretax contributions: You do not pay current federal income taxes on your contributions into a 457(b) account. For example, if you are in the 25 percent tax bracket and contribute $100 per pay period to your 457(b) account, your “take-home” pay will be reduced by just $75.

Tax-deferred growth:
 Your 457(b) account grows on a tax-deferred basis, meaning that any appreciation, earnings, interest, capital gains and dividends are not taxed until the funds are withdrawn. This allows assets to accumulate at a faster pace, a major advantage when saving for the long term. Also, you may be in a lower tax bracket after you retire, which will allow you to keep more of what you have accumulated.

Convenience: Contributions are deducted automatically from your paycheck, so there is no need to worry about writing a check or missing an investment opportunity. 

Your Representative can help you decide if a 457(b) plan is right for you.

Neither Foresters Financial nor its affiliates provide legal, tax or estate planning services. Should you require such services, you should consult a legal, tax or estate planning professional.

For more information about mutual funds from Foresters Financial when planning your 457(b), you may obtain a free prospectus by downloading it from our website, contacting your Representative or calling 800 423- 026. You should consider the investment objectives, risks, fees or charges, and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds, and should be read carefully before you invest or send money. An investment in these funds is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

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