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403b Asset Allocation feedback and Scwhab PCRA.

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  • 403b Asset Allocation feedback and Scwhab PCRA.

    Hello, 37yo attending, novice investor, trying to set my asset allocation for my 403b, held by Transamerica.
    I recently learned that if I don't have access to a total market index fund, I can build my own using different cap size index funds.
    Goal retirement age is between 60-65 yo, so mostly stocks right now:

    large cap - VFIAX 35% - er 0.04%
    mid-cap - VIMAX - 10% - er 0.05%
    small cap - VSMAX - 10% - er 0.05%
    real estate/mid-cap - VGSLX - 10% - er 0.12%
    international - VTMGX - 30% - er 0.07%
    bonds - VFIJX - 5% - er 0.11%

    I prefer simplicity, but I didn't want to do Transamerica's portfolio xpress (similar to target date fund set up), due to fee concerns over the length of my career, the number of funds they invested in, and less control over asset allocation.
    (20 or more vs the 6 I have above).

    I also have access to Schwab Personal Choice Retirement Account, where I have access to more funds, including VTSAX and others. This will cost $50 a year, but apparently no other fees. However, the money still has to pass through my transamerica account and the PCRA fund is allocated a certain percentage of future contributions (up to 100% I think), which adds another layer of customer service and complexity to deal with.

    I can't seem to find much about the fee structure for the transamerica account, but on the $2700 contributed last quarter, only paid 23 cents in fees, which doesn't seem too bad.

    What do you all think of this asset allocation?

    Would you use the Schwab PCRA or just stick with the above funds in the Transamerica account?


  • #2
    I know nothing about Transamerica, but if you have VG funds in it, then it's fine.

    I use a PCRA @ Schwab for my work 401k, and just buy ETFs in there, along with some tiny moonshots. The fee is negligible.

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