Thread: Retirement Plan
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Old 01-16-2008, 07:28 PM
atomicrc11 atomicrc11 is offline
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After looking at those funds, they all have good performance, but each has an expense ratio greater than 1% except the Equity Fund which is at 0.88%. If there are other funds available to you that offer the same market exposure with lower expense ratio's, I would take it. In the long run the higher expenses will end up costing you possibly thousands in lost gains and compounding. I had my IRA and my 401k in a fund that was around 0.88%, now I have my IRA in Vanguard Target Retirement 2045 with a 0.21% expense ratio and my 401k now has a weighted expense ratio of 0.53%. So now I have similar exposure to the market but all the expenses I would have paid to the fund company now stays in my account.
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