I'm starting a new job and having difficulty selecting a 403b company. I have narrowed it down to two options.
1) Valic: It has a straight average fee of 0.71 plus an asset fee of 0.18. The total average participant fee is 0.89 (as a percentage of assets). This plan includes funds FXAIX, (.02 ER), FSPSX (.05 ER), and DBMIX (.40ER) that I think will create a good three-fund portfolio of index funds. The target date funds are 0.97 ER.
2) Lincoln: It has a straight average fee of 0.86 with no other fees. The total average participant fee is 0.86 (as a percentage of assets). This plan includes funds with much higher ER. For example, NEIAX (.45 ER), and no index bond or international funds (they are actively managed). The target date funds are 0.85 ER.
My question is: Does the additional asset fee from Valic compensate for having lower expense ratios on my prospective fund choices?