Stable Value/Mid/Small cap options - 457(b) - ICMA RC

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Topic Author
gnostic19
Posts: 10
Joined: Mon Feb 27, 2012 5:06 pm

Stable Value/Mid/Small cap options - 457(b) - ICMA RC

Post by gnostic19 »

hello,

This thread is sort of an addendum to this viewtopic.php?p=5114733#p5114733 from a couple years ago, but there's no need to read that old thread as i've added sufficient info in this post.

I've been a 95/xx stock holder in my 457 acct for the entirety of my time in the plan. 54, will retire in 1-1.5 years. Was planning on doing it at the end of the year but the current economic situation made me reconsider.

I'll be using this 457 fund to my health care plan during retirement...the city i work for provides $350/month and i pay the balance to stay within their health care plan during retirement. I have enough in there, assuming a modest rate of return over the next 10 years, to get me to 65 and medicare. Pension will cover living expenses and i'll do some side work as well when needed.

At the beginning of May, as i the markets continued going to dark places, I moved 40% of the funds in to a MissionSquare PLUS Fund with 1.32 ER fee. I just felt better about getting a large chunk to a safer spot for the time being. This was also when i was still considering retiring at the end of the year. I did consider the MSQ Cash Mgmt (http://www.icmarc.org/prebuilt/static/f ... 00000.html) option in my plan, 0.44 NET ER fee ,and/or the MSQ Core Bond Index fund (http://www.icmarc.org/prebuilt/static/f ... 00000.html) that is offered, 0.95 ER fee. There is also a MissionSquare Inflation Focused Fund R1 (https://www.icmarc.org/prebuilt/static/ ... 50000.html), ER 1.14 fee. Our plan advisor -softly- recommended the PLUS Fund. Is he right...or would the fees wipe out the minimal gains of that fund? QTD return is 0.12%.

As far as the balance of the fund...i'm still in on stocks and was going about realigning the stock balances. Cheapest, fee-wise, is the 0.94 for the MSQ SP500 (http://www.icmarc.org/prebuilt/static/f ... 70000.html) & the MSQ Broad Mkt Index funds (http://www.icmarc.org/prebuilt/static/f ... 00000.html). These are the 2 funds i've held over the years in this acct. Yes there's overlap, but figured i needed some mid/small cap in there. I have access to a MissionSquare Mid/Small Company Index Fund (https://www.icmarc.org/prebuilt/static/ ... 80000.html) at a 0.95 ER fee as well as a Victory Sycamore Established Value Fund R1 (https://www.icmarc.org/prebuilt/static/ ... 50000.html) at 1.16 ER fee.

I think i know the answer...but am i complicating this stuff too much. Just go half SP500 and half Broad Mkt, along with the stable value fund and leave it at that?

Thanks for any assistance.
Silk McCue
Posts: 7013
Joined: Thu Feb 25, 2016 7:11 pm

Re: Stable Value/Mid/Small cap options - 457(b) - ICMA RC

Post by Silk McCue »

We are retired and use the Plus Fund in combination with a 2060 Vanguard Target Date Fund providing the account with a 60/40 AA when including 10% bond held in the target date fund. We draw down monthly from the Plus Fund for spending in addition to her FRS Pension.

https://www.icmarc.org/prebuilt/static/ ... 10450.html

The fees on her account for the Plus Fund are:
Gross Expenses 0.52%
Net Expenses 0.52%

The current figures are through March 31st of this year. It appears to be tracking closely to its recent historical performance.

Fund/Benchmark Name Qtr YTD 1-Yr 3-Yr 5-Yr 10-Yr Since Inception
MissionSquare PLUS Fund R10a 0.44% 0.44% 1.85% 2.14% 2.18% 2.18% N/A

We don't use their advisor service. That may explain the difference in fees if you are using their additional fee based service.

Cheers
Topic Author
gnostic19
Posts: 10
Joined: Mon Feb 27, 2012 5:06 pm

Re: Stable Value/Mid/Small cap options - 457(b) - ICMA RC

Post by gnostic19 »

Silk McCue wrote: Thu May 12, 2022 4:11 pm We are retired and use the Plus Fund in combination with a 2060 Vanguard Target Date Fund providing the account with a 60/40 AA when including 10% bond held in the target date fund. We draw down monthly from the Plus Fund for spending in addition to her FRS Pension.

https://www.icmarc.org/prebuilt/static/ ... 10450.html

The fees on her account for the Plus Fund are:
Gross Expenses 0.52%
Net Expenses 0.52%

The current figures are through March 31st of this year. It appears to be tracking closely to its recent historical performance.

Fund/Benchmark Name Qtr YTD 1-Yr 3-Yr 5-Yr 10-Yr Since Inception
MissionSquare PLUS Fund R10a 0.44% 0.44% 1.85% 2.14% 2.18% 2.18% N/A

We don't use their advisor service. That may explain the difference in fees if you are using their additional fee based service.

Cheers
This is how i imagined drawing money out once i retire...from the Plus fund. That fee we have though, ugh.
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