Just got a new job that offers a 401(k). I have a small 403(b) from a previous employer that I want to rollover also, but it's <$2000.
I work for a small company that doesn't offer a lot of investment options for the 401(k). I really want to invest in a low fee, passively managed index fund but that doesn't even seem to be an option.
The investment choices are bond funds, equity funds, and money market funds. The fee on the bond funds (there's only one choice) is 0.74% and it's been earning 4.88% since it's inception. There are about a dozen equity funds choices with fees ranging from 0.86% to 2.55%. Most of these funds seem to average 5-8% return. The fee on the money market account is 0.70% and it seems to be averaging 3.56% return. However, for both the money market and bond funds accounts the recent returns are much less than the average since inception. For example, even though it says the money market account has averaged 3.56% since inception, the past year has been only 0.06%, five years have been 0.02%, and 10 years at 0.45%. The bond account is similar.
These all seem like pretty crappy options to me. I don't have to invest 100% of my contribution to any one of them, e.g. I can put 75% in equity funds and 25% in bond funds, etc. Obviously I'd like to maximize my returns while minimizing my risk. I wanted to do that by investing in a low fee index fund, but that doesn't seem to be an option.
So what's the next best choice?
edit: typo
edit2: My employer does not provide a match
Submitted May 09, 2017 at 06:46AM by my_throwaway_acct_82 http://ift.tt/2q1LEBK
