I just started my first job after school and am now being enrolled in my company's 401k plan, which is handled by Vanguard. By default, I was put into the Target Retirement 2050 Trust II fund, which is a managed fund that has fees of 0.13%.
I am not sure if 0.13% is a high fund fee or not, but I figured a way to stay away from those fees was to manage the fund myself and then just try to mimic the fund allocation for my target retirement date.
Right now the Target Retirment 2050 Trust II fund is 90% stocks and 10% bonds. So I re-allocated my fund contributions to the following funds:
90% Vanguard Institutional Index Fund Institutional Plus Shares: fees of 0.02%.
10% PIMCO Total Return Instl: a bond fund with no fees as far as I can tell.
Then the plan would be to re-check my 401k on a monthly basis and make sure that my allocations are mimicking the allocations of the 2050 Target Retirement Fund. Does this seem like a good idea or not?