Author Topic: looking for 403b & 457b advice  (Read 1742 times)


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looking for 403b & 457b advice
« on: October 24, 2015, 03:21:56 PM »
I'm looking for some feedback on my 403b (TIAA-CREF) and 457b (state employee trust fund) portfolios.

I've been with TIAA-CREF since 2005, and have contributed the maximum from 2007 to the end of 2014.

In 2015, after I learned that I was allowed to contribute to both a 403b and a 457b, I lowered my monthly 403b contribution to $560/mo, and started contributing the maximum $1500 to the 457b. I made the switch because I can access the 457b when I leave my employer.

I'm reconsidering how my money is distributed within the 403b and 457b.

The 457b is simple. Everything is in one target date retirement fund.

Vanguard Instl Trgt Retire 2045 Instl
expense ratio: 0.10%

This is my 403b:

TIAA-CREF International Equity Index Fund

TIAA-CREF Mid-Cap Value Fund

TIAA Real Estate

CREF Inflation-Linked Bond

TIAA-CREF Lifecycle 2035 Fund

Expense ratios range 0.40-0.50% for each of these.

Below I've listed the only Vanguard options available within the 457b, excluding bond funds.

Vanguard Wellington Adm VWENX
expense ratio: 0.18%

Vanguard Instl Trgt Retire Inc Instl   VITRX
Vanguard Instl Trgt Retire 2015 Instl   VITVX
Vanguard Instl Trgt Retire 2025 Instl   VRIVX
Vanguard Instl Trgt Retire 2035 Instl   VITFX
Vanguard Instl Trgt Retire 2045 Instl   VITLX
Vanguard Instl Trgt Retire 2055 Instl   VIVLX
expense ratio: 0.10%

Vanguard Institutional Index Instl Pl   VIIIX
expense ratio: 0.02%

I don't think that VIIIX was available when I started the 457b, otherwise I would have gone with it instead of the 2045 fund. Should I just ditch VITLX and move all the money into VIIIX?

In the 403b, the suite of TIAA-CREF options are available. I'm noticing now that there are some with lower expense ratios and I'm thinking of rearranging things. There's an S&P 500 Index Fund (TISPX) and Large-Cap Value Index Fund (TILVX), both with 0.06% expense ratio. I'm also feel like this portfolio is overly complicated.

Some back story: I'm 44, hoping to FIRE in 5-10 years, or at least have enough FU money to feel like I could walk away from my job and work part time. My wife is 38, and is maxing out her Fidelity 403b. She really likes her job, makes good money, her job is much more secure than mine, and she doesn't really think about FU money. We have ~$30k in a taxable Vanguard account, ~$20k cash. Our only debt is our mortgage.

Any advice is appreciated.