Hey Folks -
Was hoping to get everyone’s thoughts on this, I’m re-evaluating some of my retirement savings options. My employer’s 401(k) is through Prudential, and the investment options they offer are not that great. Most of their offerings have expense ratios of 0.3% to 1.6% (depending on the fund) and they only offer one Vanguard fund that has an expense ratio of 0.04%.
I’ve been doing research on the Self Directed Brokerage option, which seems to offer much broader investment options. I’m really just looking for some low expense ratio fund options (not looking to buy individual stocks). Has anyone taken advantage of the SDB option in their 401(k)? The catch is that there is a $60 annual fee, and then each mutual fund trade charges a $21 commission. I’m not sure what the best way to navigate this would be, as I get paid bi-monthly so would be dumping money into my account twice a month. If I bought mutual fund shares bi-monthly that would be a total of $564 in fees annually. That seems high, but I’m unsure of how it compares to the expense ratios I’m currently paying (they make it so hard to do a comparison!). I suppose I could build up cash in the account and then transact every 2 months or so (lowering annual expenses to $186).
Anyone have any thoughts or suggestions?