401k Plan Changing Provider; Need Advice

[beccazan]

Hello!  Currently my 401k is through Nationwide and is invested in Total Stock Market VTSAX (80%) and Total International Stock Market VTIAX (20%).  The plan provider is changing to Transamerica on Sep 1st and unfortunately those funds are not available.  I am debating between Fidelity Four-in-One Index Fund (FFNOX), Fidelity Freedom 2030 (FFFEX) and Fidelity Freedom 2035 (FFTHX).  There were some Vanguard funds too like Wellesley Income (VWIAX) and Balanced Index (VBIAX).  I'm not looking to generate income yet and the allocations are a bit more conservative than I'd like.  I have a military pension so can be a bit more in stocks.  I am currently 50 years old and hoping to retire around age 65.  

Any information to help me decide between the funds is greatly appreciated!  Let me know if more info is needed.

Thank you!

[MN-Investor]

Personally, I'd go with the FFNOX if I were you. According to Morningstar, it has a very low expense ratio of .11%. It's invested 60% in U.S. stocks, 25% in International stocks, and 14% in bonds.

FFFEX has an expense ratio of .69%, FFTHX has one of .73%. Both have less than 50% in U.S. stocks.

While the Vanguard funds have low expense ratios, they are invested much more heavily in bonds - VWIAX has 58% in bonds, VBIAX had 39% in bonds.

[beccazan]

Thank you, MN!  I honestly hadn't noticed the expense ratios.  I knew people much smarter than me would notice what I didn't!

[buystoys]

I always looked at my 401(k) expenses and chose the lowest fees possible.  Most of the time that was in a total stock market of S&P 500 fund.  I stayed almost completely in equity funds (95-99%) until I was 50, so my AA was a little easier to maintain.  That 1-5% non-equity was 401(k) money that was in blended funds or bond funds due to expense ratios.

[phil5185]

Most 401k plans have a SP500 Index Fund. At age 50, I would (and did) invest about 100% in the Index - IMO you are too young to start into the wealth-preservation vehicles, wait until you reach 60 to start shifting some money into income funds - bonds, CDs, etc.

[beccazan]

Phil, the SP500 fund offered is Fidelity 500 Index (FXAIX).  It does make sense that since i have a pension already that I can stick to just equities in the 401k.  I also have a Roth IRA that is 100% in the Vanguard Star Fund (VGSTX) so I do get a little diversification there.

Thank you!