InfiniteImmortality OP t1_j2f74jf wrote on December 31, 2022 at 8:42 PM

Reply to comment by nkyguy1988 in What order of investment options should I focus on investing in first? by InfiniteImmortality

I just say that because I don’t trust my financial advisor and it is a actively managed fund and a target date fund of 2065 since I’m 22 but it has the highest expense ratio out of all of them at 0.81 and it doesn’t even outperform the s and p 500 when it shows growth of 10k and I invest in my Roth IRA Vfiax which is purely s and p at a much lower expense rate .04. Should I not even worry and just put whatever I can’t contribute into my Roth into the target date fund?

nkyguy1988 t1_j2f7w7m wrote on December 31, 2022 at 8:48 PM

Then don't use your advisors advice. Is that the only fund options you have? Do you have passive managed funds available to you within the 401k? Not every plan is good, many aren't, and just have high ER funds. Yours could be that. If so, then I would only put in what it takes to get the match then focus on IRA. Only come back to the 401k after the IRA is capped out. Few things outperform the S&P 500 as that's a pretty close measure to the whole market. Not the most inclusive, but close.