Originally Posted by
flap
The PRAP target date funds are about 40 Basis points (40/100 of 1%) because they are a mix of passive and active investing.
Industry average about 63 basis points.
Vanguard that RHA invested in about 9 basis points.
Schwab as two suites. Index funds for about 8 basis points and active management in the 40-60 range.
PRAP target date funds have performed well, both gross and net of fees.
You’re exactly correct, and those index funds at 0.08% are far cheaper than the actively managed ones at 0.4-0.6% (literally 5X to 8X cheaper). Guess what else: The cheaper index funds will outperform.
You wanna make a bet?
https://www.investopedia.com/article...-brka-brkb.asp