401k – High ERs – What to choose?

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401k – High ERs – What to choose?

Postby John3754 » Sat Mar 23, 2013 11:05 pm

These are the funds available in my 401k, I’m a Vaguard guy so I’m not used to seeing such high expense ratios, trying to figure out where to park my contributions. There is only one index fund, the Mid Cap Index Fund with an ER of 0.54. AA in this account is not critical as I can balance the funds in the 401k with my Vanguard IRA, so anywhere from 70/30 to 100/0 in the 401k is workable. What do you think? Thanks.

Lifestyle Growth – 1.07
Lifestyle Balanced – 1.00
Lifestyle Moderate – 0.99
Lifestyle Conservative – 0.92
Fidelity Advisor Gold Fund – 1.31
Real Estate Securities Fund – 0.79
Oppenheimer Developing Markets Fund – 1.28
Energy Fund – 0.84
DFA International Value Fund – 0.95
Invesco Small Cap Growth Fund – 1.27
Oppenheimer International Growth Fund – 1.12
EuroPacific Growth Fund – 1.00
Franklin Small-Mid Cap Growth Fund – 0.99
Prudential Jennison 20/20 Focus Fund – 1.13
Small Cap Value Fund – 1.33
Value Fund – 0.83
Mid Cap Index Fund – 0.54
T. Rowe Price Small Cap Value Fund – 1.33
Mid Value Fund – 1.06
Capital Appreciation Fund – 0.78
Equity Income Fund – 0.87
Franklin Templeton Founding Funds Allocation Fund - 1.06
The Investment Company of America – 0.80
Ivy Asset Strategy Fund – 0.97
Core Global Diversification Portfolio – 1.05
BlackRock Global Allocation Fund – 1.14
Mutual Global Discovery Fund – 1.26
Core Diversified Growth & Income Portfolio – 1.00
Core Fundamental Holdings Portfolio – 1.00
U.S. High Yield Bond Fund – 0.82
Oppenheimer International Bond Fund – 0.98
Strategic Income Opportunities Fund – 0.83
PIMCO Total Return Fund – 0.96
U.S. Government Securities Fund – 0.77
Short-Term Federal Fund – 0.70
Money Market Fund – 0.55
Last edited by John3754 on Sat Mar 23, 2013 11:40 pm, edited 1 time in total.
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Re: 401k – High ERs – What to choose?

Postby hoppy08520 » Sat Mar 23, 2013 11:18 pm

Wow, whoever came up with lineup should be whipped. What a plan. Anyway, I think you're right to go with the mid cap fund (assuming its a suitable index fund as we just have the name to go by) and work around it with your IRA.
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Re: 401k – High ERs – What to choose?

Postby gtwhitegold » Sat Mar 23, 2013 11:47 pm

I think that you will be better served if you modify the topic to ask for a portfolio evaluation so as to include your other assets as well. That way we would be better able to assist.

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Re: 401k – High ERs – What to choose?

Postby patrick » Sun Mar 24, 2013 12:21 am

It could be much worse -- look around in the old posts on this forum a bit to find plenty of examples. If I were in this plan and had enough assets outside to balance with, I would invest the 401K 100% in the mid cap index fund and then use the other accounts for bonds (and foreign stocks too).
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Re: 401k – High ERs – What to choose?

Postby downshiftme » Sun Mar 24, 2013 2:59 am

What terrible choices. Do we work in the same place? I went with midcap index (0.54ER) when I had a similar list of bad choices and then pushed the rest of my portfolio outside of the 401k around to give me an overall Asset Allocation that seemed sensible. You do not have a lot to work with here.
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Re: 401k – High ERs – What to choose?

Postby bUU » Sun Mar 24, 2013 3:38 am

You think that's bad? Check out mine!
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Re: 401k – High ERs – What to choose?

Postby JW Nearly Retired » Sun Mar 24, 2013 7:08 am

The Investment Company of America – 0.80
Capital Appreciation Fund – 0.78

I see no obvious large cap/SP500 like fund in your list unless one of these with a less than totally ghastly ER is it. If one is, then I would use it mixed with some of the mid-cap. The ER's are not great but plenty of people have worse.
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Re: 401k – High ERs – What to choose?

Postby ruralavalon » Sun Mar 24, 2013 8:24 am

Just use the Mid Cap Index Fund – 0.54, buy a bond fund outside the 401k.

Read this -- viewtopic.php?t=2571 .
Last edited by ruralavalon on Sun Mar 24, 2013 8:25 am, edited 1 time in total.
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Re: 401k – High ERs – What to choose?

Postby Trev H » Sun Mar 24, 2013 8:24 am

Agree with others... it could be a lot worse (mine is)...

Suggestion...

1/3 each, Mid Cap Index, DFA Intl Value, US Gov Securities...

The total ER would be right at 0.75

And that would be decently diversified.

Good Luck !

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