I also would not do the 0.72% exp ratio fund just for the extra small cap diversification. It is certainly possible small caps MAY outpace mid and large cap funds over the next 5,10,20 years - even including that fee. Or they may not. Since all we know about right now is the fee, and SPIVA reports consistently show fees to be the biggest determinant in future performance, best probability of long-term success lies in low fees.
Honestly doesn't matter between picking a few 0.03% index funds or the 0.06% target date fund - the main thing is to keep your overall asset allocation (across all accounts) on track. If you're 100% equities, the main AA decision is how much domestic vs international. Some TD funds have 20% international, some 45% international, and everywhere in between. If you choose to use a TD fund and it has a different international allocation than you want, adjust your overall AA by purchasing certain funds in other accounts.
Hopefully you have a Roth IRA that you add money into after your 401K match is reached - Roth funds are great wealth builders providing huge tax savings in retirement, and the best time to invest in them is when you're young and at the start of your career.
Honestly doesn't matter between picking a few 0.03% index funds or the 0.06% target date fund - the main thing is to keep your overall asset allocation (across all accounts) on track. If you're 100% equities, the main AA decision is how much domestic vs international. Some TD funds have 20% international, some 45% international, and everywhere in between. If you choose to use a TD fund and it has a different international allocation than you want, adjust your overall AA by purchasing certain funds in other accounts.
Hopefully you have a Roth IRA that you add money into after your 401K match is reached - Roth funds are great wealth builders providing huge tax savings in retirement, and the best time to invest in them is when you're young and at the start of your career.
Statistics: Posted by esteen — Wed May 08, 2024 1:06 am