I just started with a new company. (Coincidentally, in the dame day that they went to a new 403(b) administrator). The plan fees are AWFUL. .95% of account balances are taken as a fee every year. In addition, of course, the funds themselves charge fees. For actively managed funds its 1-2%. I'm an index fund investors ... Thise funds charge .6-.75%. So, my annual fees are 1.55%-1.7% vs. .05% for admiral shares at Vanguard. OMG. My company offers a 50% match on the first 4% . So their 2% pretty much just covers the extra fees i am paying for the honor of investing through the plan. And, since the fees are based on my annual assets and the match is only on my annual salary, every year the imbalance would get worse.
So, I, who always maxes out all retirement accounts am close to saying no way and, instead, investing the same amount in a vanguard after tax portfolio. The only thing is that decision feels so WEIRD. And my 403(b) does offer a roth option. Anyone have any thoughts/suggestions? Changing 403(b) administrators is not an option for at least a few years. Am I wrong in my analysis somehow?