403b options

Investing
#1

Unfortunately, my employer does not offer target date index funds as options for 403b but they do offer individual index funds. I’m 36 and attempted to set up my fund according to PFC recommendation of 10% bonds, 54% US, 36% non-US.

My only non US option is RERGX at an expense ratio of 0.46% so I chose to contribute only 25% of my portfolio to non-US.

10% bonds
65% US
25% non US (RERGX)

My question is, should I get rid of RERGX all together due to the high expense ratio and have 90% US, 10% bonds??

#2

I am in the same boat. My international side expense ratio is a bit higher than my US. I think it just depends on how diversified you want to be. I’m about the same as you- 33yo, 65% US, 27% non, 8% bonds. When I made this allocation, I read a lot of research about US vs non. It seems like the consensus is yes, the US market has been outperforming the global market for the past several years, 10+! But past performance does not guarantee future performance, so it could continue to tank and global markets could go up. If that happens, you’d be glad to be diversified. But on the flip side, it could continue to outperform and you could be happy you did away with it! Just how much risk do you want- it’s riskier to have non but could also be a high reward if the next 10 years mimic these past 10.