Author Topic: 401k Options w/ Spouse  (Read 654 times)


  • Stubble
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  • Posts: 154
401k Options w/ Spouse
« on: March 13, 2019, 03:29:30 PM »

I currently have my 401k spread across large, mid and small cap to diversify along with international.

One large cap fund has a 0.11% expense ratio while every other fund starts at 0.42% going up to 0.9%.  My question is, should I simply allocate everything to the 0.11% fund or keep as is to diversify and avoid risk.

My wife is currently maxing out her 403B to lessen student loan payments but her expense ratios are even worse than mine! Although her fees are fairly consistent across asset classes.  Should I simply move all of my funds to the lowest expense fee fund (large cap at 0.11% fee) and diversify on my wifes side?

Note, we are not currently investing outside of our employee sponsored plans but plan to.

Any advice is much appreciated, thank you!


  • Handlebar Stache
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  • Posts: 1432
Re: 401k Options w/ Spouse
« Reply #1 on: March 13, 2019, 03:47:58 PM »
Yes. Expense ratios are the plague, and you cannot expect any fund to outperform by that spread. In fact, you should expect every other fund to underperform, on average, the average stock market by the expense ratio.