457 fund picks

[misstrangelove]

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.

[MDM]

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.

Don't worry about "daunting" - the only people who know for sure are ones wearing hindsight glasses.  What you are proposing is very reasonable - good luck!

[milesdividendmd]

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.

Why not just put 25% in each vanguard, small, mid, S&P, and bond?  Easy to rebalance/keep track of.  you have good options.  Just start investing...

[misstrangelove]

Thank you for your responses, I'll do 25% in each and see what happens!

[BarkyardBQ]

How old are you?

With FI in 10-12 years, why would you want 25% bonds? That's not very 'aggressive', most would consider 100% stocks aggressive until relatively close to FI and then switching contributions to bonds, or rebalancing when you reach FI.