Currently, we are investing 100% in Global Equity Market Index Portfolio but maybe it's time to revisit this choice.
What should be my framework for making a decision?
Our kid is in 6th grade now. Should I start adding bonds? What would be a rule of thumb? I see that target date portfolios for 2028 (assuming they target enrollment date and assuming that's when my kid goes to college), range between 50/50 to 60/40. Maybe I should go 60/40? If investing in bonds which bond portfolio would you recommend?
Should I pick something with lower ER? Like Equity Index 500 portfolio? The Global Equity Marked Index Portfolio is composed of
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| Equity Index 500 Fund—I Class | 56.00% |
| International Equity Index Fund—Investor Class | 30.00% |
| Mid-Cap Index Fund—I Class | 7.00% |
| Small-Cap Index Fund—I Class | 7.00% |
The 0.09% difference for $60K (each of us has roughly $30K, currently) is $54/year, not a huge amount but still something...
Here are the ERs from the above doc for convenience:
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|----------------------------------------+----------------------+-------------+-----------+------------------|
| Investment Options | Estimated Underlying | Program Fee | State Fee | Total Annual |
| | Fund Expenses | | | Asset-Based Fees |
|----------------------------------------+----------------------+-------------+-----------+------------------|
| Portfolio 2042 | 0.59% | 0.05% | 0.05% | 0.69% |
| Portfolio 20395 | 0.57% | 0.05% | 0.05% | 0.67% |
| Portfolio 20365 | 0.57% | 0.05% | 0.05% | 0.67% |
| Portfolio 20335 | 0.55% | 0.05% | 0.05% | 0.65% |
| Portfolio 2030 | 0.54% | 0.05% | 0.05% | 0.64% |
| Portfolio 2027 | 0.52% | 0.05% | 0.05% | 0.62% |
| Portfolio 2024 | 0.41% | 0.05% | 0.05% | 0.51% |
| Portfolio for Education Today | 0.28% | 0.05% | 0.05% | 0.38% |
| Equity Index 500 Portfolio | 0.05% | 0.05% | 0.05% | 0.15% |
| Equity Portfolio | 0.57% | 0.05% | 0.05% | 0.67% |
| Extended Equity Market Index Portfolio | 0.15% | 0.05% | 0.05% | 0.25% |
| Global Equity Market Index Portfolio | 0.14% | 0.05% | 0.05% | 0.24% |
| Balanced Portfolio | 0.53% | 0.05% | 0.05% | 0.63% |
| Bond and Income Portfolio | 0.47% | 0.05% | 0.05% | 0.57% |
| Inflation Focused Bond Portfolio | 0.11% | 0.05% | 0.05% | 0.21% |
| U.S. Bond Index Portfolio | 0.11% | 0.05% | 0.05% | 0.21% |
| U.S. Treasury Money Market Portfolio | 0.23% | 0.05% | 0.05% | 0.33% |
|----------------------------------------+----------------------+-------------+-----------+------------------|