Author Topic: What funds to pick for 457 plan?  (Read 1569 times)

Lski'stash

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What funds to pick for 457 plan?
« on: November 04, 2015, 06:35:05 PM »
A bit of background: I started out at AXA because a nice guy went to my classroom and met me. After finding MMM I decided to nix AXA and switched due to their high expense fees (1.19%) and lack of funds I liked. Then, I went to Valic because they have the lowest fees for mutual funds, until I found out that they can only due annuities with my school, at a charge of 1.42% on top of what Vanguard charged.

I was finally able to track down a company that had reasonable fees and Vanguard funds for my 457 plan and works with my school. Midwest Capital has been pretty great, they only charge .38% on top of what Vanguard charges directly. I set up an account today, and can pick and choose funds as I choose anytime online. I attached a document with everything I can choose from. Right now, I am signed up for five different Vanguard funds on the recommendation of the lady I was on the phone with (at the end of the attached document), but I'm pretty sure the mustachians can do better;)

I have also attached below what their company has for 'premade' allocations that they have below for comment and recommendations as well.

Any recommendations on which funds to pick and how much to allocate to each would be much appreciated. Thank you!!


« Last Edit: November 05, 2015, 02:47:57 PM by Lski'stash »

Interest Compound

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Re: Help me pick funds for my 457 please!
« Reply #1 on: November 04, 2015, 07:16:34 PM »
For your domestic stock holdings, I'd model it after VTSAX, Vanguard's total market cap-weighted index fund:



For your international stock holdings, I'd model it after VTIAX, Vanguard's total international market cap-weighted index fund:



For your bond holdings, I'd simply choose VBTLX, Vanguard's total market bond fund. Luckily you don't have to pick and choose different bond funds to try and match it, as it's already offered in your plan :)

Now, of course, it's up to you to decide how much to put in stocks, and how much to put in bonds. If you'd like you can model it off the Vanguard's Target Retirement fund for your age.

Lski'stash

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Re: Help me pick funds for my 457 please!
« Reply #2 on: November 05, 2015, 04:06:57 PM »
For your domestic stock holdings, I'd model it after VTSAX, Vanguard's total market cap-weighted index fund:



For your international stock holdings, I'd model it after VTIAX, Vanguard's total international market cap-weighted index fund:



For your bond holdings, I'd simply choose VBTLX, Vanguard's total market bond fund. Luckily you don't have to pick and choose different bond funds to try and match it, as it's already offered in your plan :)

Now, of course, it's up to you to decide how much to put in stocks, and how much to put in bonds. If you'd like you can model it off the Vanguard's Target Retirement fund for your age.

Sorry, I'm a newbie at this. Are those the percentages of each kind of stock? Here is how I adjusted it based on the target date retirement account for my age.


Vanguard - Total Bond Market Index Admiral    10.00%

Vanguard Total Intl Stk  35.00%

Vanguard Ttl Stock Fund   55.00%

Account Total:   100.00%
    
« Last Edit: November 06, 2015, 03:44:18 AM by Lski'stash »

MDM

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Re: Help me pick funds for my 457 please!
« Reply #3 on: November 05, 2015, 10:02:45 PM »
Vanguard - Total Bond Market Index Admiral    10.00%
Vanguard Total Intl Stk  35.00%
Vanguard Ttl Stock Fund    55.00%
Assuming the amounts are the ones above (note: edited slightly), that looks very reasonable.  Set a reminder to rebalance (if needed) once a year or so.