conversation: User (457b): "Hello everyone! Just looking some advice/validation on my current financial situation. \n\nI work for a city as a police officer and they offer two 457b Deferred Compensation retirement account options. I picked Nationwide over MassMutual (if anyone thinks that was a bad idea, I’ll try to switch it) I elected to contribute 10% of my weekly paycheck (right now about $95). The investment option I picked was the Nationwide Aggressive Portfolio. I’m 24 but plan to retire at 44 (my job allows me to retire after 20 years). Should I stick with the Nationwide portfolio (fees at 0.90) or should I try to arrange my own portfolio? Is it difficult?\n\nAdditionally, I have a Fidelity IRA account that was rolled over from a 403b account I had with an old employer. Today, I was on the phone trying to transfer the $1,309.00 to my Nationwide account. They said it would be easier to cut me a check and have me forward it to Nationwide myself. Currently my personal savings is pretty low (like $1,500). Would it really be a bad idea to pay the 10% penalty and keep the money? \n\nThanks for the advice!"
  Self: "Sounds like you are doing ok.  Aggressive plans usually have something like an 85/15 or 80/20 equity to bond ratio.  You should see if you can figure out what it's split into - e.g. large cap, mid cap, small cap, international.  The expense ratio isn't too bad either.  I believe you can get lower if you invest in index funds or ETFs, but generally 457s don't provide much choice - they tend to have a limited amount of options to choose from.  I would personally recommend a moderately aggressive portfolio with a 20 year retirement horizon. \n\nStart increasing your ratio of bonds as you get closer to retirement age (or moving aggressive to moderately aggressive to moderate to conservative).\n\nIdeally you want around 15% of your pay going to the 457, but 10% is a good start.\n\nI'm assuming you will receive a pension as well?\n\nLastly, it's up to you if you choose to fortify your emergency savings.  There is nothing inherently bad about taking the hit - it's only around $150."
  