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I am a teacher in Indiana, and our corporation's 403b program offering is quite small.

I have read a great deal of info about investing, and everything I've come across says to invest all you can in pre-tax offerings, if available.

I, of course have opted to invest in their meager index offerings, which have no 12b-1 fees and lower management (.3-.4) than others such as American, Blackrock, etc., whose fees are almost 2%.

I am currently investing the max ($15.5K) These are my allocations: Metlife Mid Cap 20%, Metlife Stock Index 25%, Russell 2000 20%, Morgan EAFE index 25% and Lehmman Index 10%.

I am concerned that I am not diversified enough, and that even though these are pre-tax contributions, it may be better in the long run to invest outside of the 403b. I'm also worried about diversification because I realize some of these indices are related to others in the big picture.

We are also close to the cap for IRA's so I'm not sure I can invest in other tax sheltered options.

Any thoughts or ideas?
Thanks so much for your time!
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