My university offers a 401(a) plan that has a match. Because it is not a 401(k) it is not subject to the IRS maximum, and I am only allowed to put here enough to capture the match.
They also offer a 403(b) and a 457(b) but there's no match there.
The vendors are Fidelity, TIAA-CREF, and VALIC,.
I have a TIAA-CREF Target Date fund.
Vendors, Target Date Funds, and Expenses according to Morningstar:
- TIAA-CREF's Lifecycle 2040 (TCOIX) 0.44% Expenses according to Morningstar
- Fidelity: I called Fidelity last month, and what they have available for employees at my university is the FFKFX fund which has a 0.67% expense ratio.
- Valic offers this one: American Funds 2040 Target Date Fund (RDGTX), 0.79% expenses
My question:
If I could get Vanguard, the expenses would be 0.16%.
Is there a way to get a lower expense ratio though Fidelity, for example buy buying Fidelity funds?
I found this article but it's from 2008, and I was wondering if this is still a possibility:
https://assetbuilder.com/knowledge-center/articles/scott-burns/three_ways_to_have_vanguard_at_fidelity
What is the downside? I would probably would have to manually re-balance the portfolio but., is there something else I need to consider?
Susana