Hi all,
Just a quick question — my new employer is finally rolling out a 401K program at work, which I was excited about when I first heard of it! But I just got more details today, and I'm decidedly less enthusiastic now.
Some details: There is no employer match, and the funds are underwhelming to say the least.
There is a big list of funds, most from companies I've never heard of, and all of them have high expense ratios compared to Vanguard/Schwab/Fidelity. The best 2 of the list for my situation (married, age 34, no kids yet) and what I'm looking for (diverse index fund, similar to VFINX or VFIFX) are:
- Nationwide S&P 500 Index (GRMAX) — Expense ratio: .6%. This is by far the lowest ER on the list, but compared to something like VFINX, it seems underwhelming.
- JPMorgan SmartRetirement 2050 (JTSAX) — Expense ratio: 1.31%
Most of the rest of the options are small cap funds, emerging market funds, or a REIT.
My question(s): Considering that there is no employer match, is it even worth investing in one of the 2 funds listed above, given how high the ER is and how lackluster the performance is? I have a 401K from a previous employer (VFIFX) with around $20K in it, can I potentially roll over everything I contribute to this new employer's 401K into my old 401K so that my money is in something that I like much better?
Thanks!