In a month or two I will start putting money away in a 457 plan, but I'm not sure what funds I need to choose.
I have around 3k in the plan now, and no other retirement savings. I think I can contribute at least 12k a year. I am hoping to reach FI in 10-12 years.
the link to my plan brochure is here, on page 5:
http://wv457.com/portals/wv457/Enrollment%20Guide%20Jan%202015.pdf I want to aggressively invest for now, so I gather that I want to aim for 75% stock and 25% bond.
My plan only offers one bond:
Vanguard® Total Bond Market Index Fund – Institutional Shares
My plan also has three Vanguard stock options:
Vanguard®500 Index Fund - Signal® Shares
Vanguard® Mid-Cap Index Fund - Signal® Shares
Vanguard® Small-Cap Index Fund - Signal®Shares
The cheapest fees of the remaining options is .79%
So should I put 25% in the bond fund, 50% in mid or small cap, and 25% in 500 Index?
It's exciting to finally start working towards retirement, but it's a little daunting to figure out what is what.