Need help choosing self directed or managed retirement fund.

[moosejaw]

Hi Everyone,

My wife recently started work in a new position.  The great thing is she has a substantial raise in pay, and a good retirement system to invest in.

In the plan she has chosen, called Plan 3, she can choose between a self directed plan where she chooses her own funds to invest in, or the managed plan, which has higher fees but potentially "better returns"(although that may or may not be true.)

I have looked at the numbers a number of times, but don't feel very confident in making the choice since it's not my expertise.

Would any of you be willing to look through a couple of these links and give me your opinion on the best choice?

https://docs.retirementpartner.com/ioag/98760-01_IOAG.pdf

and

https://savewithwa.empower-retirement.com/preLoginContentLink.do?accu=DRSWR&contentUrl=preLogin.Tab5.E&specificBundle=preLogin

[MDM]

...potentially "better returns"

Why yes, and potentially one will win the lottery if one buys a ticket.

A target date fund containing a stock/bond split matching your risk tolerance would be just fine for starters.  When you learn more you might do some sort of Three-fund portfolio - Bogleheads, or you might also decide the target date fund is just fine forever.