Retirement Savings Plans and Index Funds

My employer offers matching on my “retirement savings plan” contributions. I know very little about this area, but if I’m reading the plan info right, there are two index fund options offered, one US and the other non-US.

Any concerns or considerations I should look for when considering these two options?

Should I avoid these offerings entirely and ask them for something else entirely?

Thanks for helping another personal finance noob. :slightly_smiling_face:

Hey! Welcome and glad you are asking a question! So, it is not uncommon for employers to offer a selection of funds or equities to invest in. I am slightly surprised that you only have two options for investing, but I will let someone more knowledgeable tackle that. But to answer your question explicitly, here are some things you should consider…

Hope this helps provide some clarity! Come and ask more questions when you want!

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Sorry for the confusion, those two options are both described as Index Fund options. One US and one non-US.

Those are likely your best options! The only thing I would check is the “expense ratio”. It should show you or you should be able to look it up pretty easily. Index funds likely have the lowest expense ratio of any options you’re given. 0.1% or lower is excellent, anything under 0.5% in a employer sponsored program is OK. Anything over 1% is ugly and should be avoided.

If they have a low expense ratio, I’d probably invest in exactly those! Maybe 70/30 or 60/40 tilted towards US. If you want a bond portion (less volatility, safer short term returns) then you could add a portion based on your age (young people 20% or less, near retirement 50%ish)