New to a 403(b)---15 years from retirement in 403(b) Forum Posted September 2, 2019 · Report reply I think it is useful to address some deeper more fundamental questions than just the ones you asked. If the vendor is charging 0.5% on top of whatever they’re charging for the funds, this isn’t a very good plan. So it would be in your best interest to identify every 403b and 457b vendor your district has approved. Some states have state sponsored 457b plans that are relatively good and sometimes great. Come back and post your options and I can give some further guidance. I think you’d benefit from reading the Investing 101 page because it hits on several of the topics you’re asking about. With respect to which funds you should buy, you definitely want total market index funds because they’re really low cost and fully diversified (that’s how you pick a fund). The following three will give you a fully diversified portfolio: VTSAX, VTIAX, and VBTLX. However, you want your portfolio as a whole to meet your asset allocation, so which funds you should buy and in what percentage depends on what funds you own in your other accounts. It isn’t “correct” to say that having other retirement accounts means you can take on more risk in this account. Everybody has a specific amount of risk they’re comfortable with and their overall portfolio should always reflect that. If you decide to be “more risky” in this account it means one of two things: your other accounts were too safe to begin with or you’d be taking on too much risk. In my view you should recognize that stocks can lose approximately half of their value very quickly and take years (maybe even 10+ in a terrible scenario) to recover. However, stocks have a higher expected return in the long term. You want to own as much stock as you can such that when a crash does happen you keep buying stocks and you don’t do something foolish like sell. Having said that, only you know what that percentage is.