I finally decided to open a 457b with my employer. It is through Nationwide and I was initially going to choose the T. Rowe Price 2050 fund [TRPMX] but I noticed that the expense ratio is a bit high at 0.45%. Now i’m wondering if i should pick my funds individually or should I just stick with the target date fund.
Here are the options I have and the ones in bold are what i’m leaning towards. I’ve also put the percentage towards each one.
[Small Cap 5%]
Vanguard Small Cap Index Fund- VSCIX expense ratio is 0.04
Vanguard Small Cap Growth Index Admiral-VSGAX expense ratio is 0.07
DFA US Targeted Value -DFFVX expense ratio is 0.29
[Mid Cap 5%]
Vanguard Mid Cap Index Fund-VMCIX expense ratio is 0.04
Allspring Spec Mid Cap Val R6-OTCKX expense ratio is 0.70
MFS Mid Cap Growth R6-OTCKX expense ratio is 0.66
[Large Cap 44%] or should i just pick this fund at 54% and forget about the small and mid cap funds?
Vanguard Institutional Index Funds-VINIX expense ratio is 0.04
Vanguard Equity-Income Admiral-VEIRX expense ratio is 0.19
T.Rowe Price Institutional Large-Cap Growth-TRLGX expense ratio is 0.55
Vanguard International Growth Fund Admiral-VWILX expense ratio is 0.32
American Beacon Intl Equity R6-AAERX expense ratio is 0.71
Vanguard Total Bond Market Index Admiral-VBTLX expense ratio is 0.05
DFA Inflation-Protected Securities-DIPSX expense ratio is 0.11
Metropolitan West Total Return Bond-MWTSX expense ratio is 0.36
TIAA-CREF High-Yield Institutional-TIHYX expense ratio is 0.36
Also if i pick them individually then i would have to adjust the percentages every few years right? So that is why I wasn’t sure if I should just stick to the target date fund to keep things easy!
Any help is greatly appreciated!