Update: I switched from a high-fee target date fund to building my own simple three-fund portfolio

For years, I just threw money into the target date fund my 401k offered. The statement said it had a 0.75% fee, which I didn't think much about. After reading a basic book on index funds, I did the math on what that fee would cost over 30 years. It was shocking. Last quarter, I moved everything. I built a simple mix with a total US stock fund, an international fund, and a bond fund. The combined fee is under 0.10%. The difference in my quarterly statement is already noticeable, and the control I have feels way better. I wish I'd done this a decade ago. Has anyone else made a similar switch and noticed a real difference in their growth?

2 comments

2 Comments

river_rivera457d ago

Wait, you were paying 0.75% for a target date fund? That's crazy high, no wonder the change was so big. Good on you for finally making the switch.

spencerm527d ago

My old 401k was bleeding me dry with that fee.