Hello All,
I currently have a defined contribution (401k & 457b) plan with my employer that has limited investment options. The account administrator used to offer various index funds, however they are canceling the index funds and replacing them with actively managed funds (expense ratios of about 0.6%). While this sucks, they do offer a "Personal Choice Retirement Account (PCRA)". The PRCA is essentially the option to move my 401k/457 plans over to a Schwab account and invest the money myself in whatever I'd like.
So I have created the Schwab account, with the intent to put the money into VTSAX, however I am seeing that Schwab charges a transaction fee of $50 everytime you buy VTSAX (as well as any other mutual fund that is not in the Schwab network). However, they don't charge a fee on any mutual funds in their network or any individual stocks (maybe they don't charge for ETFs as well). Since I will likely be contributing to my 401k/457b I am thinking I am definitely not going with the VTSAX w/ fee option. I am thinking of investing in the Schwab Total Market Index:SWTSX. SWTSX has a lower expense ratio of 0.03% and looks comparable, any thoughts on this index fund or other index fund options?