There are some Vanguard funds in the mix with their otherwise-good ERs:
- VIIIX (S&P 500) at 0.02%
- VBMPX (Total Bond) at 0.03%
- VIGIX (Large Growth) at 0.04%
- VSMAX (Small Cap) at 0.05%
- VVIAX (Large Value) at 0.05%
- VEMPX (Extended Market) at 0.05%
- VSIAX (Small Value) at 0.07%
- VTPSX (Total International) at 0.07%
- VBIRX (Short Bonds) at 0.07%
- VMVAX (Mid-Cap) at 0.07%
- VEMIX (Emerging Markets) at 0.10%
- VTABX (Total Int'l Bond) at 0.11%
On the other hand, if I keep the whole balance in cash, I'll soon get into a higher tier that raises me from 0.25% to 1% interest with no investing fee, which seems valuable. (That probably won't last once next year's deductible starts hitting, though.) I also have an option that doubles the interest rate until I've received $25 in extra interest; if I stay with my current job indefinitely, I'll get that no matter what, but if I were to leave, the faster I accrue interest the more I will have gotten. $25 isn't going to cause dancing or weeping either way, however.
Right now, I'm inclined to keep the cash balance in hopes that I'll cross the threshold for higher interest. However, the basic question is still there -- is there a level of expense ratio where it's better to just sit in cash? Or should I be investing everything beyond what's needed for upcoming expenses and grit my teeth about the fee?