<begin-rant>
In the name of streamlining, the Univ. of California is eliminating low cost Fidelity spartan funds with super-low expenses in the range 0.025-0.05%. For some of the eliminated funds like Spartan Total-Market, there are no alternatives left. In the remnant funds, there are no funds tracking SP500 either.
<end-rant>
Now the only funds worth looking at are UC domestic equity, UC Global Equity Funds, and UC International Equity Index fund. They all have expense ratio of 0.15%.
My money is currently in three accounts: a) 403b (14k), b) 457b (21k) and c) UC Defined Contribution Plan (20k).
I will be leaving my current position in 4 months. Is it better if I leave the money in the above mentioned funds and hope Spartan funds will return some day? Or is it better to transfer the money to IRA and use the eliminated spartan funds which have slightly higher expenses? I am asking this because 4xx funds are more secure than IRAs. Also the 457b account has the option of penalty-less withdrawal.
The expense ratio for UC International Equity fund at 0.15% seems low for getting international exposure. Is it better to leave some amount (min. required in the account) in the UC International Fund?
My current line of thinking is to move all the money in UC 457b to International Equity Fund and move the money in 403b and UC DCP to IRA and buy spartan funds.
This makes the portfolio over-exposed to international stocks. However, over time, I intend to make the overall portfolio more US centric.
Are there any holes in my logic?
Thanks