munnix wrote:Recently received my annual report from the organization that manages my 403(b). They are charging .11 annually for the balance of my account. I'm fully vested in Vanguard's Target Retirement 2015 (VTXVX) fund. This has me paying .28 for the fund, which to me still seems like a bargain. I just wonder if it truly is? Would it make better economic sense to put my funds, beyond my employer's match in a taxable (Admiral shares) Vanguard fund? My wife and I both have Roths, which we have already maxed out for 2013. I'm at a 15% marginal tax rate.
Would appreciate some Boglehead insights. Just a little flustered to think this one through clearly.
I've been reading the forum regularly for the past five or so years, just rarely post. Thanks for all of the great advice and view.
I think very roughly speaking your costs would have to be ten times (ok, five times at your tax rate, but still a lot) what they are before eschewing tax deferment of your earned income would make sense.
One of the most nefarious features of the 401K system is that it is actually possible for the investor to come out ahead even if being robbed blind by plan providers along the way, and you have very, very good costs.