As a fiduciary financial advisor in Gastonia, Holland Capital helps hospital and health care employees plan how a 403(b), any 457(b) and Social Security fit into one retirement plan. We work with clients in Gastonia by video and phone, and meet in person by appointment at the Regus center in Kings Mountain.
Two retirement plans at one job can be harder to use than one.
Gaston County’s largest employers include its nonprofit hospital system and other health care providers. A nonprofit employer usually offers a 403(b) instead of a 401(k). Some also offer a 457(b) as a second plan, usually to managers, physicians or other senior staff.
Each plan has its own rules for saving, withdrawals and what happens when you leave. The rules are close enough to look the same and different enough to matter.
The questions come up well before retirement: which plan to fill first, how to invest each one and when you can afford to stop working.
The 403(b) and the 457(b)
A 403(b) works much like a 401(k). You can contribute from your paycheck, the employer may add a match, and money taken out before 59½ usually carries a 10% penalty on top of income tax, with some exceptions.
A 457(b) has a separate contribution limit, so someone with both plans may be able to save more than the 403(b) allows alone. Money taken from a 457(b) after you leave the job is generally not subject to the 10% early withdrawal penalty. That can help if you retire before 59½.
A 457(b) at a nonprofit employer has limits too. Until it is paid to you, the money legally belongs to the employer and could be reached by its creditors. It generally cannot be rolled into an IRA. You may also have to choose how and when it will be paid out, and that choice can be hard to change.
We look at both plans together before recommending how much goes into each.
When Retirement Works
We line up your 403(b), your 457(b), any old accounts and Social Security, then test different retirement ages against what you expect to spend.
Retiring before 65 also means paying for health coverage until Medicare starts. That cost belongs in the plan from the start.
Our guide on retirement income planning explains how income from each account can be sequenced.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Investing the Plans You Already Have
Most of your savings may sit inside plans we do not hold. You still choose the funds inside them.
We manage your savings under a written investment policy statement. It sets the household’s balance between stocks and bonds and decides which plan should hold what, so the accounts do not repeat each other.
At Holland Capital, investment management includes advice on the funds in your 403(b) and 457(b), even though those accounts stay with your employer’s provider.
How We Work with Clients in Gastonia
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Before we meet, find your latest statement for each workplace plan, your most recent pay stub and your Social Security estimate. If your employer gave you a summary of the 457(b) payout rules, bring that too.
We compare the two plans, identify the first decision to make and test the retirement age your numbers can support.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Holland Capital is based in Charlotte. If you are looking for a fiduciary financial advisor in Gastonia, we meet by appointment at the Regus center at 502 West King Street in Kings Mountain, about 16 minutes from Gastonia, and handle shorter check-ins by video or phone. Holland Capital does not maintain a branch office in Gastonia.
We work with clients throughout North Carolina. You can see the other North Carolina communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
What Does a Fiduciary Financial Advisor Do with a 403(b) and 457(b)?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. We help you decide how much to put in each plan, how to invest both and how to draw from them later.
Because a nonprofit 457(b) generally cannot move to an IRA, part of your savings may never be managed by us. Our advice on it is the same either way.
Should I Use Both Plans If My Employer Offers Them?
Using both can make sense when you can afford to save more than one plan allows. The 457(b) can also give you penalty-free access if you retire early.
Because a nonprofit 457(b) carries the employer’s credit risk, you may want it to be the smaller of the two. We look at your employer, your timeline and your other savings first.
Is There a Meeting Place Near Gastonia?
Yes. We meet by appointment at the Kings Mountain Regus center, about 16 minutes away.
Reviews between meetings can be done by video or phone.
Photo: GastoniaHappening / Wikimedia Commons / CC BY-SA 4.0, cropped.
