403(b) Investment help

[NewYorkDan]

Hi all,

This is my first time on the forum. I'm just starting out my career and was auto enrolled in a Vanguard target retirement account (VTRLX). There are a number of other funds available that I'd like to look into to get the best results in retirement.. the following funds are available:

Short Bonds/Stable/MMkt
Vanguard Treasury Money Market Inv. -VUSXX - (exp. ratio - .09%)
Lincoln Stable Value Separate Account

Interm./Long-Term Bonds
Metropolitan West Total Return Bond M - MWTRX - (exp. ratio - .67%)
Vanguard Total Bond Market Idx InstlPls - VBMPX - (exp. ratio - .03%)

Aggressive Bonds
Dreyfus/Standish Global Fixed Income I - SDGIX - (exp. ratio - .53%)

Large-Cap Stocks
Diamond Hill Large Cap A - DHLAX - (exp. ratio - .96%)
Loomis Sayles Growth A - LGRRX - (exp. ratio - .91%)
Vanguard FTSE Social Index I - VFTNX - (exp. ratio - .12%)
Vanguard Institutional Index Instl Pl. - VIIIX - (exp. ratio - .02%)

Small/Mid-Cap Stocks
Vanguard Mid Cap Index InstlPlus - VMCPX - (exp. ratio - .03%)
Columbia Small Cap Value II Instl - NSVAX - (exp. ratio - 1.06%)
Vanguard Small Cap Index I - VSCIX -(exp. ratio - .04%)
Franklin Small Cap Growth Adv - FSSAX - (exp. ratio - .87%)

International Stocks
American Funds EuroPacific Gr R6. - RERGX - (exp. ratio - .49%)
Vanguard Total Intl Stock Index I - VTSNX - (exp. ratio - .09%)


Any thoughts on investing to get better results than a target retirement account?? Any advice would be greatly appreciated. Thanks!!

[Duckie]

NewYorkDan, welcome to the forum.

the following funds are available:

The best options are:

• Vanguard Institutional Index VIIIX (.02%) -- Large caps, 80% of US stocks
• Vanguard Mid Cap Index VMCPX (.03%) -- Mid caps, 6% of US stocks
• Vanguard Small Cap Index VSCIX (.04%) -- Small caps, 14% of US stocks
• Vanguard Total Intl Stock Index VTSNX (.09%) -- Complete international stocks
• Vanguard Total Bond Market Index VBMPX (.03%) -- US bonds

VTRLX currently has an AA of 54% US stocks, 36% international stocks, and 10% bonds. If you like that AA and want to use the slightly cheaper individual funds instead of the target-date fund you could have:

• 44% Vanguard Institutional Index VIIIX (.02%)
  10% Vanguard Small Cap Index VSCIX (.04%) <-- Could be skipped.
  36% Vanguard Total Intl Stock Index VTSNX (.09%)
  10% Vanguard Total Bond Market Index VBMPX (.03%)

Or just stick with VTRLX until you have more retirement assets.

Any thoughts on investing to get better results than a target retirement account?

The individual funds won't really give you a better result if the AA is similar. They will, however, allow you to choose your AA instead of going with the target-date fund's AA.