My 403(b) Account Automatically Rebalanced. Did It Do a Good Job?
Nicole Dieker
159

Yeah, the sheer amount of products, procedures, and proprietary bullshit emanating from the finance industry can be quite daunting. After hours trading is available at additional cost, and depends on how many services your brokerage offers.

As for the rebalancing act, you can actually find out your asset allocations via the monthly, quarterly, and annual statements that your brokerage is obligated to provide you.

Your asset allocation looks like a mix of active and passive funds, and there’s probably some decent overlap between funds like TIAA Traditional and CREF Equity Index R1 but it’s hard to say without diving into each funds’ investment prospectus, which I have neither the time nor inclination to do.

You can be “diversified enough” with about 5 funds like:

US equities (Either the S&P 1500 or the Russell 3000)

US investment grade bonds

MSCI EAFE equities

MSCI EAFE investment grade bonds

Emerging market equities

And you’d weight them according to their relative size, according to modern portfolio theory.

But to be perfectly honest, these are marginal improvements. If there’s a big difference in expense ratios, it’ll be worth it in the long run. If there isn’t, then I wouldn’t bother.

Also, you can do both a SEP and Roth IRA. Hope this helps.

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