Hello fellow Mustachians,
What would you do?
I started my own business this year and I've decided to open a solo 401(k) and I want to do it before December 31 as my employees are in a savings account at the moment and I want to get their asses to work. So, trying to make a decision.
Finding low-expense-ratio mutual funds is not easy in the solo 401k world!
So would you:
go with Vanguard, which doesn't allow the less expensive Admiral Shares in its Solo 401k, nor ETFs, so I'm looking at VTSMX with an expense ratio of 0.15%, Otherwise no fees (there is a $20 per fund fee, but that's waived for me because I have other money with Vanguard)
Or
go with Etrade, which has one fund available with no fees and a 0.07% expense ratio - Fidelity Extended Market Index Premium - FSEVX - which is supposed to correspond to the total return of stocks of mid to small cap U.S. companies. No other fees.
https://www.etrade.wallst.com/v1/stocks/snapshot/snapshot.asp?symbol=FSEVXEtrade has some other nice features that Vanguard doesn't in their Solo 401k, including the option for loans, and in service distributions which allows for the mega backdoor Roth option.
https://www.madfientist.com/after-tax-contributions/I have about $450K in other tax-deferred accounts, $150K mortgage. I am 48, single and about 7 years from FIRE.
I considered Schwab and Fidelity, but they don't have a Roth option. I also considered TD Ameritrade and the lowest expense ratio on a broad stock mutual fund was 0.16%.
What would you do?
