I like to have a simple approach to my 401k savings (I'm currently 32). I either want to invest in some low cost index funds, or in a low cost target retirement date fund.I've have my IRAs and one of my 401ks in Vanguard's 2045 fund. This seems like a pretty good fund -- it holds a total stock market index, a total international index, and a total bond index. The expense ratio is .18%, which is slightly higher than holding the component funds but not by much.My current employers 401k is a bit unusual. They've paid some financial manager to create company branded funds for them, and this is the bulk of what's available in the plan. They do offer a set of target date funds, but with a .55% expense ratio. These plans are all underperforming their benchmarks, which makes sense since they're basically the same as all the others but with larger expenses for no particular reason.So .55% isn't awful but it's also kind of pointlessly high and that will compound quite a bit over the years.There are 4 other index funds. A total bond index, a total international index, a large cap index, and a mid/small cap index.So I thought I could simulate the target date funds and just rebalance each year. The only hitch here is that the large and mid/small index funds overlap. The large is Russel 1000, and the mid/small is Russell 2500. That means the 500-1000th largest firms in the Russell index are in both funds.So my options are to go with the easy fund at .55% expense or do my own thing with the small selection of other options at about .07% expense, but with double the investment in narrow slice of the market.Any opinions?
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