Which Plan is Right for You?

OHIO DEFERRED COMP

Pros:

• Cost-effective: Low fees make it an affordable option for retirement savings.
• Non-Proprietary Options: Offers a variety of non-proprietary funds like Pimco, Fidelity, and Vanguard.
• No Loan Provisions: Encourages better financial planning by avoiding the temptation to borrow from retirement savings.

Cons:

• Limited Bond Options: There are fewer bond choices compared to equity investments; careful selection is necessary.
• Delayed Access Post-Retirement: It may take time to access funds after retirement.
• No Personalized Advice: Employees are legally restricted from offering personal financial advice, which can be both a pro and a con.

MISSION SQUARE

Pros:

• Flexibility: Allows loans and is portable, making it convenient for those who may move between states.
• Loan Provisions: Access to funds in emergencies, though this can lead to overuse.
• Marketing Approach: Appeals to municipalities and public service employees as an alternative option.

Cons:

• Higher Fees: Investment options generally have higher fees, which can reduce returns.
• Transparency Issues: Lacks transparency in investment expenses; proprietary products often lead to higher fees.
• New Client Experiences: Customer support via 1-800 numbers may be less engaging and more reactive.

We have always suggested Ohio Deferred Comp for two reasons.

1) They have great low-cost investments for accumulating assets.

2) They don't allow loans.

Final Thoughts:

• Ohio DC Advantage: Lower fees, transparency, and a variety of options make Ohio DC a strong choice for most individuals, particularly those who understand investments and market dynamics.

• MS Considerations: MS is a popular choice because loans are allowed. However, MS requires a careful comparison of fund costs and returns.

Planning and proactive financial management are key to understanding which plan will work best for your family.