Long story short, I am trying to keep my expense ratios as low as possible. In my Companys 401K I am invested in the following:
VG Total stock market index @ .02% ER
VG Total Bond Index Institutional @ .07 ER
VG STAR International Index @ .32 ER
Very pleased with these low expense ratio's.
My wifes Company does not offer any VG funds and the funds they do offer have very high expense ratios. The only two I am considering are the Blackrock Lifepath fund (Target retirement fund) with an expense ratio of .65 expense ratio or an S&P Index fund at .25 expense ratio.
I basically have two options in her account. #1 Buy the Blackrock Lifepath with .65 ER OR #2 Buy the S&P with .25 ER.
Now, my questions...If I go with Option #2, I gain a lower ER, but, in order to maintain the AA in our combined investing strategy, I would have to reduce the contribution I am making in my account on the VG Total Stock index fund as a large % of equities would be bought through her account with the S&P index fund at .25 ER. I compared the VG Tot Stock fund to the S&P and the Tot Stock fund perfomed better by about $1,000 better on an investment of 10K.
Should I expose myself to the S&P fund and less VG Tot stock mkt exposure (Lower ER @.25) OR keep her in the Blackrock lifepath fund (higher ER @.65) but this allows me to keep investing more in the VG Tot stock fund.
I guess bottem line is this: Would you buy the S&P index over the VG Tot stock fund, get a little less performance but a lower ER or just suck it up and buy the Blackrock at .65 ER?
Thanks
VG Total stock market index @ .02% ER
VG Total Bond Index Institutional @ .07 ER
VG STAR International Index @ .32 ER
Very pleased with these low expense ratio's.
My wifes Company does not offer any VG funds and the funds they do offer have very high expense ratios. The only two I am considering are the Blackrock Lifepath fund (Target retirement fund) with an expense ratio of .65 expense ratio or an S&P Index fund at .25 expense ratio.
I basically have two options in her account. #1 Buy the Blackrock Lifepath with .65 ER OR #2 Buy the S&P with .25 ER.
Now, my questions...If I go with Option #2, I gain a lower ER, but, in order to maintain the AA in our combined investing strategy, I would have to reduce the contribution I am making in my account on the VG Total Stock index fund as a large % of equities would be bought through her account with the S&P index fund at .25 ER. I compared the VG Tot Stock fund to the S&P and the Tot Stock fund perfomed better by about $1,000 better on an investment of 10K.
Should I expose myself to the S&P fund and less VG Tot stock mkt exposure (Lower ER @.25) OR keep her in the Blackrock lifepath fund (higher ER @.65) but this allows me to keep investing more in the VG Tot stock fund.
I guess bottem line is this: Would you buy the S&P index over the VG Tot stock fund, get a little less performance but a lower ER or just suck it up and buy the Blackrock at .65 ER?
Thanks