Retirement account Index fund investing

[dsog]

Hello all,

I'm looking for some input on my 403b and 457 retirement accounts. I currently have my funds invested in a Target Fund for both but am looking to take on more control and lower the expense ratios by allocating funds myself. I'll likely allocate into the available Vanguard Total Bond Market Index and Vanguard Total International Stock Index, but there is no option for a Total US Stock Market Index. There are only options for Vanguard US Large cap Institutional Index and Vanguard US Small/Mid cap Extended Market Index.

Thoughts on if this still seems like a good idea given the available US stock market funds to choose from or better to stay in the Target date fund, which invests in a Vanguard total stock market index?

If moving forward with the large cap and small/mid cap Vanguard Indeces, I'm trying to figure out how much should be allocated into each, knowing that large cap stocks make up the vast majority of the US stock market value and the small/mid caps making up a much smaller minority.

Appreciate any thoughts or experiences anyone has had with this type of scenario.

 

[VagabondMD]

The Vanguard Large Cap Institutional Index compares favorably with the Total Stock and the Index 500, and you can use it as your equity allocation, if you are doing a three-fund portfolio.

https://institutional.vanguard.com/web/c1/product-details/fund/0807

It includes the S&P 500 companies plus 100 or so midcaps. If you want, you can add some of the extended market, maybe $1 for every $5 in the large cap fund to attempt to mimic VTSAX, but it is not going to move the needle much.

[Peds]

dsog wrote:

Vanguard US Large cap Institutional Index and Vanguard US Small/Mid cap Extended Market Index.

Click to expand...

that is TSM in 2 parts.

its 80:20.

[Lordosis]

That is what I did.  Now I kind of regret it because I have learned that it really does not make that much of a difference to make up for the added hassle.  At least it is tax free to rebalance.

Chances are they are just going to be placeholders until you need that space for bonds.  If you are a good saver then yo will be likely filling your taxable account up with US/International stock and your tax deferred space will continue to increase with bonds.