I'm worried about what I don't know. Am I missing something here!?
Mutual funds typically have significantly higher expense ratios (read:
reduced earnings potential over time), and much less diversification than many index funds.
A bank is the last place on earth I'd open up an account for retirement. You're not using a Wells Fargo service, by any chance, are you?
If I were a young investor starting out today (unfortunately I'm not), I'd open an account with Vanguard, and just buy VTSAX (you own the whole market, including everything in Nasdaq) with a 0.02% expense ratio, and no fees to trade into it or out of it.
Set it to automatically reinvest dividends, and keep plowing money into it every paycheck without even looking at the stock market for the next 20 or 30 years.
I'm saying this as a very satisfied Schwab client. Vanguard didn't exist when I started investing. I lack sufficient motive to move accounts now. If I was just starting out, I'd go with Vanguard.