Author Topic: What would you suggest... small-cap in 403b?  (Read 1720 times)

Tig_

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What would you suggest... small-cap in 403b?
« on: May 20, 2015, 03:52:20 PM »
I just finished the jlcollinsnh.com Stock Series a few days ago after seeing a post here about it.  I have a question as to what you all would suggest…

My 403b is through TIAA-CREF.  Most of my allocation is in VINIX.  I also have some in VMCIX.  So, large and mid-cap –check.

The problem is when we get to the small cap – they don’t offer the Vanguard fund for this.  My options are TISBX (ER .13%) and TISEX (ER .49%).  TISBX has about 55% small cap and 45% midcap, and TISEX is 50/50 small and midcap.

The only other Vanguard funds I have access to are VTSNX and VBTIX.


Question: If the ultimate goal is to track the overall US market – then I want small caps in my overall portfolio, yes?  Would it make sense to add TISBX (given the blend with mid-caps, which I already have with a lower ER)?  Or wait until I have enough to open an account with Vanguard and add the diversity there? 


I have a small rIRA through my bank, but it’s from a time before MMM and more of a CD setup than directed investments.  Will roll over soon.  I’m barely at the 11k mark on total investments, so I haven’t lost much time (and I'm mid-20s).   



Thoughts or suggestions?  Other paths I haven’t considered? 


forummm

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Re: What would you suggest... small-cap in 403b?
« Reply #1 on: May 20, 2015, 04:42:25 PM »
I think you have a bunch of good choices. What you're doing now is fine. Small caps are about 9% of VTSAX, so your portfolio is already really close to Total US. And small caps track pretty closely with large and mid. If you want to add in a dash of TISBX, that would be fine too. Not necessary, but a reasonable thing to do. You can also reallocate as desired when you do move or add some funds to an account at Vanguard.

Congrats on how well you're doing already! You're thinking about some good stuff here.

seattlecyclone

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Re: What would you suggest... small-cap in 403b?
« Reply #2 on: May 20, 2015, 04:48:20 PM »
0.13% really isn't that bad of an expense ratio for a small-cap fund. Once you grow your investments outside your 403(b) to the point where you can invest in Vanguard Admiral shares, you might plan to do that. TISBX sounds fine for now.

Tig_

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Re: What would you suggest... small-cap in 403b?
« Reply #3 on: May 20, 2015, 04:55:45 PM »
Many thanks to you both seattlecyclone and forummm!!

forummm

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Re: What would you suggest... small-cap in 403b?
« Reply #4 on: May 20, 2015, 04:57:37 PM »
Many thanks to you both seattlecyclone and forummm!!

Glad to be of service <tip of the top hat>