I just recently started my first job where I can contribute to a 401(k) and plan to contribute the max $18k over the last several paychecks for 2017. I have the option of several target date funds, but the expense ratio is 0.5% for their 2050 target date fund compared to ~0.04% for some of the available Vanguard funds. I realize that my savings rate is the most important factor at this point in my "investing career" but if I plan on saving at the same rate regardless of what funds I'm putting the money in right now I figured I might as well try and minimize expenses and mirror - as closely as possible - my current 2050 target date fund in my Roth IRA with Vanguard (54.1% total stock market index fund investor shares, 35.9% total international stock index fund investor shares, 7% total bond market II index fund investor shares, 3% total international bond index fund investor shares). This way early on I'll get used to re-balancing my portfolio, etc. Is it worth it to do the latter or is the difference between 0.5% and 0.04% expense ratios so insignificant with the little amount $$ invested that its not even worth the effort?
NAME/TYPE OF OPTION TOTAL ANNUAL OPERATING EXPENSE REDEMPTION FEES As a % Per $1,000 % # Days Additional Information
Stable Value
Stable Value Option 0.65% $ 6.50 N/A N/A
Income
Metropolitan West Total Return Bond Fund (Class I) 0.44% $ 4.40 N/A N/A
Vanguard GNMA Fund (Admiral Shares) 0.11% $ 1.10 N/A N/A
Vanguard Total Bond Market Index Fund (Admiral Shares) 0.05% $ 0.50 N/A N/A
Target Date
LifeCycle 2010 0.36% $ 3.60 N/A N/A
LifeCycle 2015 0.36% $ 3.60 N/A N/A
LifeCycle 2020 0.38% $ 3.80 N/A N/A
LifeCycle 2025 0.43% $ 4.30 N/A N/A
LifeCycle 2030 0.46% $ 4.60 N/A N/A
LifeCycle 2035 0.50% $ 5.00 N/A N/A
LifeCycle 2040 0.50% $ 5.00 N/A N/A
LifeCycle 2050 0.50% $ 5.00 N/A N/A
LifeCycle Income 0.36% $ 3.60 N/A N/A
Growth & Income
Columbia Dividend Opportunity Fund (Class Y) 0.62% $ 6.20 N/A N/A
Vanguard Institutional Index Fund (Institutional Shares) 0.04% $ 0.40 N/A N/A
Vanguard REIT Index Fund (Admiral Shares) 0.12% $ 1.20 N/A N/A
Growth
ClearBridge Large Cap Growth Fund (Class I) 0.85% $ 8.50 N/A N/A
JPMorgan Mid Cap Value Fund (Class L) 0.95% $ 9.50 N/A N/A
Janus Henderson Enterprise Fund (Class I) 0.78% $ 7.80 N/A N/A
MFS Technology Fund (Class R3) 1.27% $ 12.70 N/A N/A
Touchstone Small Cap Growth Fund (Institutional Class) 1.25% $ 12.50 N/A N/A
Vanguard S&P Mid-Cap 400 Index Fund (Institutional Shares) 0.08% $ 0.80 N/A N/A
Vanguard Small-Cap Index Fund (Admiral Shares) 0.06% $ 0.60 N/A N/A
Victory Integrity Small-Cap Value Fund (Class R6) 1.00% $ 10.00 N/A N/A
International
American Funds - EuroPacific Growth Fund (Class R6) 0.50% $ 5.00 N/A N/A
Vanguard Total International Stock Index Fund (Admiral Shares) 0.11% $ 1.10 N/A N/A
NAME/TYPE OF OPTION TOTAL ANNUAL OPERATING EXPENSE REDEMPTION FEES As a % Per $1,000 % # Days Additional Information
Stable Value
Stable Value Option 0.65% $ 6.50 N/A N/A
Income
Metropolitan West Total Return Bond Fund (Class I) 0.44% $ 4.40 N/A N/A
Vanguard GNMA Fund (Admiral Shares) 0.11% $ 1.10 N/A N/A
Vanguard Total Bond Market Index Fund (Admiral Shares) 0.05% $ 0.50 N/A N/A
Target Date
LifeCycle 2010 0.36% $ 3.60 N/A N/A
LifeCycle 2015 0.36% $ 3.60 N/A N/A
LifeCycle 2020 0.38% $ 3.80 N/A N/A
LifeCycle 2025 0.43% $ 4.30 N/A N/A
LifeCycle 2030 0.46% $ 4.60 N/A N/A
LifeCycle 2035 0.50% $ 5.00 N/A N/A
LifeCycle 2040 0.50% $ 5.00 N/A N/A
LifeCycle 2050 0.50% $ 5.00 N/A N/A
LifeCycle Income 0.36% $ 3.60 N/A N/A
Growth & Income
Columbia Dividend Opportunity Fund (Class Y) 0.62% $ 6.20 N/A N/A
Vanguard Institutional Index Fund (Institutional Shares) 0.04% $ 0.40 N/A N/A
Vanguard REIT Index Fund (Admiral Shares) 0.12% $ 1.20 N/A N/A
Growth
ClearBridge Large Cap Growth Fund (Class I) 0.85% $ 8.50 N/A N/A
JPMorgan Mid Cap Value Fund (Class L) 0.95% $ 9.50 N/A N/A
Janus Henderson Enterprise Fund (Class I) 0.78% $ 7.80 N/A N/A
MFS Technology Fund (Class R3) 1.27% $ 12.70 N/A N/A
Touchstone Small Cap Growth Fund (Institutional Class) 1.25% $ 12.50 N/A N/A
Vanguard S&P Mid-Cap 400 Index Fund (Institutional Shares) 0.08% $ 0.80 N/A N/A
Vanguard Small-Cap Index Fund (Admiral Shares) 0.06% $ 0.60 N/A N/A
Victory Integrity Small-Cap Value Fund (Class R6) 1.00% $ 10.00 N/A N/A
International
American Funds - EuroPacific Growth Fund (Class R6) 0.50% $ 5.00 N/A N/A
Vanguard Total International Stock Index Fund (Admiral Shares) 0.11% $ 1.10 N/A N/A
Comment