I am trying to maximize/lower our expense ratios. Let me explain the situation.
Me: Funds in TSP and Vanguard IRA's. Access to extremely low expenses. Mostly in VTSAX
Wife: Funds in 457/State retirement plan as well as Ira's(VTSAX). The downside of her plan is that there is a management fee of .5% that I can't get around. There are cheap vanguard funds(.04 to .06) but of course that turns out to really be .54 or .56.
Question is should I be tilting the small cap/mid cap allocation towards my TSP if it saves us jointly that .02 in expense? For example small cap/mid cap investing costs her another .02 while it is about the same in the TSP as the other funds.
So basically I would have her exchange all of her small cap/mid cap and goto the .04 Vanguard 500 fund. ...then as a result I would just tilt my personal TSP allocation more towards S Fund, thereby making up for the small cap allocation and yet saving .02 expense fees.
I will mention that together we have about $205,000 in retirement assets invested.
Does anyone think this is a good idea...or am I just splitting hairs and it's not going to make much of a difference?
I have something of the same question with International investing but until next year the I fund is still pretty poorly invested in terms of the indexing...
