Author Topic: 457 investment options with TD Ameritrade  (Read 722 times)

benstagram

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457 investment options with TD Ameritrade
« on: July 26, 2018, 09:29:29 AM »
I'm planning to start contributing to my company's 457b. From looking at the available funds in the plan, nothing has stuck out as being what I'm looking for (something like total stock fund VTSAX, VTI, VTSMX etc.) I can, however, do a Self-Directed Brokerage account through the plan which has access to options through TD Ameritrade. In their list of commission free ETFs (https://research.tdameritrade.com/grid/public/etfs/commissionfree/commissionfree.asp?fromSectionLeftNav=true) I noticed these two:

SPDRŽ Portfolio Total Stock Market ETF
SPDRŽ Portfolio Total Stock Market ETF

Would these be similar to Vanguard VTI? Or what would be a good option for something total market from TD Ameritrade?

Here is a link to my plan's default 457 options:
https://kpers457.empower-retirement.com/participant/#/articles/KansasWR/investmentInformation
(maybe there is something there and I just don't know what I'm doing well enough to recognize it?)

Also a link to my Case Study post for more info on me:
https://forum.mrmoneymustache.com/case-studies/case-study-30-yrs-old-am-i-on-the-right-track/

Any input would be greatly appreciated! Thank you!




Radagast

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Re: 457 investment options with TD Ameritrade
« Reply #1 on: July 26, 2018, 09:55:08 AM »
Yes, SPTM is almost identical to VTI. That brokerage window is a big score. With that thing you can get any allocation you want for a low expense. Also check out the options for bonds and international stocks. Always sort by expense ratio, lowest first.

I should note that I could not open the link to the default 457 plan options for some reason. So I didn't look there.
« Last Edit: July 26, 2018, 10:05:40 AM by Radagast »

terran

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Re: 457 investment options with TD Ameritrade
« Reply #2 on: July 26, 2018, 10:02:40 AM »
Vanguard Institutional Index (VINIX) is VTSAX with even lower expense ratios offered to employers with large amounts of assets. I would put it all in that.

You also have Vanguard Total Bond Market Index Inst (VBTIX) which is VBTLX with a lower expense ratio.

The vanguard target date funds you have available are also good funds.

The international options don't look great. I would invest elsewhere for international.

I was going to warn you about non-governmental 457 plans being subject to the creditors of the employer since you said company instead of hospital or university or some such, but it looks like this is a state plan, so no worries there. Congrats on having access to the best type of plan for early retirees (my wife does as well, so we're maxing that thing right out!).

benstagram

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Re: 457 investment options with TD Ameritrade
« Reply #3 on: July 26, 2018, 10:55:02 AM »
Vanguard Institutional Index (VINIX) is VTSAX with even lower expense ratios offered to employers with large amounts of assets. I would put it all in that.

You also have Vanguard Total Bond Market Index Inst (VBTIX) which is VBTLX with a lower expense ratio.
Ah! Thanks, I had no idea! I was thinking the plan might be crap, but it turned out just the opposite!

Yes, SPTM is almost identical to VTI. That brokerage window is a big score. With that thing you can get any allocation you want for a low expense. Also check out the options for bonds and international stocks. Always sort by expense ratio, lowest first.
Thanks for that info! Doesn't look like I'll need to go that route for now. One less login is always nice!
« Last Edit: July 26, 2018, 11:11:23 AM by benstagram »