Help me recommend funds to our 457 provider

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fortfun
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Help me recommend funds to our 457 provider

Post by fortfun » Tue Nov 05, 2019 9:20 pm

The third party that recommends the funds for our 457 provider has generally selected high fee funds. Tomorrow, I have the opportunity to speak with him. I was thinking that I would at least suggest the Vanguard TDF lineup. I believe that is a solid choice for most employees who know nothing about investing. I'm afraid that he is going to say the Trowe Price TDFs have outperformed the Vanguard TDFs, which they have, and he doesn't want to replace them for that reason.

Here is our list of funds.
https://docs.google.com/spreadsheets/d/ ... ingle=true

What would you suggest I advocate for? I'd still prefer the Vanguard TDFs to TrowePrices' funds.

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JamesSFO
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Re: Help me recommend funds to our 457 provider

Post by JamesSFO » Tue Nov 05, 2019 9:25 pm

Maybe focus on getting the expensive S&P500 replaced and a cheaper total US bond fund?

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FiveK
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Re: Help me recommend funds to our 457 provider

Post by FiveK » Tue Nov 05, 2019 9:29 pm

fortfun wrote:
Tue Nov 05, 2019 9:20 pm
I'm afraid that he is going to say the Trowe Price TDFs have outperformed the Vanguard TDFs, which they have, and he doesn't want to replace them for that reason.
Apples vs. oranges. E.g., see the underlying fund percentages at Retirement 2035 Fund (TRRJX) Investment Performance - T. Rowe Price vs. VTTHX - Vanguard Target Retirement 2035 Fund | Vanguard.
What would you suggest I advocate for? I'd still prefer the Vanguard TDFs to TrowePrices' funds.
Vanguard TDFs would be good.

If not (or in addition to) those, any of the ones (Vanguard or other) listed in Three-fund portfolio - Bogleheads should be good.

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Brianmcg321
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Re: Help me recommend funds to our 457 provider

Post by Brianmcg321 » Tue Nov 05, 2019 9:40 pm

Just get them to add:
Vanguard Total Stock Market
Vanguard Total Bond Market
Vanguard Total International

I have a 401k with TRowe. Thankfully it includes these three funds, and thats what I am investing in, along with about 12 other employees here.

Use Vanguards fees as bargaining. Show him articles of how universities and other employers are being sued for having really high fee funds in their 401ks.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.

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fortfun
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Re: Help me recommend funds to our 457 provider

Post by fortfun » Tue Nov 05, 2019 9:48 pm

JamesSFO wrote:
Tue Nov 05, 2019 9:25 pm
Maybe focus on getting the expensive S&P500 replaced and a cheaper total US bond fund?
Agreed! Thanks JamesSFO.

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fortfun
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Re: Help me recommend funds to our 457 provider

Post by fortfun » Tue Nov 05, 2019 9:51 pm

FiveK wrote:
Tue Nov 05, 2019 9:29 pm
fortfun wrote:
Tue Nov 05, 2019 9:20 pm
I'm afraid that he is going to say the Trowe Price TDFs have outperformed the Vanguard TDFs, which they have, and he doesn't want to replace them for that reason.
Apples vs. oranges. E.g., see the underlying fund percentages at Retirement 2035 Fund (TRRJX) Investment Performance - T. Rowe Price vs. VTTHX - Vanguard Target Retirement 2035 Fund | Vanguard.
What would you suggest I advocate for? I'd still prefer the Vanguard TDFs to TrowePrices' funds.
Vanguard TDFs would be good.

If not (or in addition to) those, any of the ones (Vanguard or other) listed in Three-fund portfolio - Bogleheads should be good.
Thanks for pointing out the differences! I appreciate your input fiveK (as usual).

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fortfun
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Re: Help me recommend funds to our 457 provider

Post by fortfun » Tue Nov 05, 2019 9:52 pm

Brianmcg321 wrote:
Tue Nov 05, 2019 9:40 pm
Just get them to add:
Vanguard Total Stock Market
Vanguard Total Bond Market
Vanguard Total International

I have a 401k with TRowe. Thankfully it includes these three funds, and thats what I am investing in, along with about 12 other employees here.

Use Vanguards fees as bargaining. Show him articles of how universities and other employers are being sued for having really high fee funds in their 401ks.
Thanks brianmcg.

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