Retirement Date Funds Net Expense Ratio FRS 2015 Retirement Fund (2015) 0.20% FRS 2020 Retirement Fund (2020) 0.18% FRS 2025 Retirement Fund (2025) 0.15% FRS 2030 Retirement Fund (2030) 0.09% FRS 2035 Retirement Fund (2035) 0.08% FRS 2040 Retirement Fund (2040) 0.08% FRS 2045 Retirement Fund (2045) 0.08% FRS 2050 Retirement Fund (2050) 0.08% FRS 2055 Retirement Fund (2055) 0.08% Money Market FRS Money Market Fund (60) 0.06% Bonds FRS U.S. Bond Enhanced Index Fund (80) 0.05% Pyramis Intermediate Duration Pool Fund (90) 0.12% FRS Core Plus Fixed Income Fund (310) 0.24% US Stocks FRS U.S. Stock Market Index Fund (120) 0.02% U.S. Large Cap Equity Fund (320) 0.39% FRS U.S. Small/Mid Cap Equity Fund (330) 0.64% Foreign & Global Stocks FRS Foreign Stock Index Fund (200) 0.03% American Funds New Perspective Fund (210) 0.49% American Funds Euro-Pacific Growth Fund (220) 0.49% |
“Self-Directed Brokerage Account: The Self-Directed Brokerage Account (SDBA) allows you to invest in thousands of different investment options in addition to the Investment Plan's primary investment funds. To participate in the SDBA you must maintain a minimum balance of $5,000 in the Investment Plan's primary investment funds and initial and subsequent transfers into the SDBA must be at least $1,000. An SDBA is for experienced investors and is not suitable for all members. There are risks associated with many of the investments in the SDBA and you assume the full risk and responsibility for the investments you select.” |
Questions! From this noobie Mustachian (ill try to keep them brief)
1. Is my thinking in the correct path?
2. Which investment of the two options should I head for?
3. Should I save up 6 months’ rent first before using the current 7k savings for investing?
4. Should I keep the 2013 or sell (get older model) and invest the difference (will probably be around 1-3k cash)
5. Should I have waited to pay off the car loan and invested that 10k+ money!!! UGH THIS HAUNTS ME EVERY NIGHT!....
Questions! From this noobie Mustachian (ill try to keep them brief)
1. Is my thinking in the correct path?
2. Which investment of the two options should I head for?
3. Should I save up 6 months’ rent first before using the current 7k savings for investing?
4. Should I keep the 2013 or sell (get older model) and invest the difference (will probably be around 1-3k cash)
5. Should I have waited to pay off the car loan and invested that 10k+ money!!! UGH THIS HAUNTS ME EVERY NIGHT!....
1. Seems reasonable. In general, don't do any taxable investing until you are out of room in your tax-advantaged options.
2. Need to know the Defined Benefit details. You should look at the effective return guaranteed by this option, and compare that with what you are "reasonably sure" you could do with the self-investing plan. Of course, if you know you won't stick around long enough to qualify for the DB then there's really no realistic choice.
3. Depends on your job security. If low, then yes. If high, then $7K may be enough of an e-fund.
4&5. No comment - up to you.
I'm a very big believer in having an adequate Emergency Reserve Fund. I personally maintain -- separate from my investment accounts -- a savings account with one year's worth of basic living expenses as my Emergency Reserve. Less "extreme" folks (maybe you) could be comfortable with a six-month emergency reserve. This reserve needs to cover not just your rent, but all your basic living expenses (which does not include travel, vacations, savings, entertainment, etc).
Setting up this Emergency Reserve should come first, before getting into investments. Because financial emergencies don't give advance warning that they're coming.
Which of the investment options suits my situation best? the Dated Retirement Funds or The FRS US Index funds 120?At 26 years old, your investments can withstand more variability and still likely be higher come retirement, vs. someone having a much shorter time horizon. Given that, I'd lean toward the US Index 120 (it emulates the Russell 3000). But one can make a defensible case for the 80/20 retirement fund as well.