NYS Deferred Income Plan? Anybody? (New York, York: home, school, title)

[chattyneighbor]

My son has been working for the State of New York - part time through graduate school and now full time but doesn't participate in the NYS Deferred Income Plan. I think he should. He says he is better off investing the money himself. Anybody here participating and willing to share whether the investments were paying off - and what product you chose?

[grouse789]

Find out if he is entitled to ITHP. (Increased take home pay) Not widely available in nys, NYC much these days. However if he has that, or any program that has a garanteed percentage rate, then go for it. ITHP for some garantees 8%, which is pretty good these days. His deferred comp system is good, BUT if he really knows what he is doing then yes, he can do better on his own. Just know all that deferred money will be taxed at time of withdrawal.
One of the only benefits to the deferred compensation is being able to withdraw it penalty free upon retiring regardless of age.
Good luck, invest as much as he can while he is young. I don't know anyone who said they wished they had not invested so much.
Bottom line, whether he knows what he is doing or not, he needs to invest. Most of my co workers were financial flunkies always saying they couldn't afford the deferred system. 20 years go by and they have zip, while others have close to 1,000,000. pAY YOURSELF FIRST!
Good luck!

[delhidi]

The deferred compensation is a great program. You can put any amount in that you want taken out of your paycheck. Your son should start asap.