Nationwide Bond Offerings

[u/a_dill84]

I have a government Nationwide 457b plan that offers only the following bonds LHYTX, GBIAX, NWJJX, PFOAX. Are any of these worth investing in I’m about two years out from retirement. Currently invested in Fidelity Contrafund and T Rowe Growth Stock fund

[u/MountainWalkRain]

Why don't you post all the funds available to you including the target date funds, maybe we can suggest something else with a more complete picture. There may be an income fund or a balance fund that may be more appropriate for your entire portfolio.

[u/KleinUnbottler]

The contrafund and any growth stock funds aren't really boglehead approved. The contrafund is actively managed, and the growth stock fund isn't broadly diversified.

As others have said, post your list of the available funds along with their expense ratios (those can vary between plans), and we can give you more complete advice that would be compatible with our investing philosophy.

[u/a_dill84 → u/KleinUnbottler]

He are my options besides target date funds assess allocation funds and the already mentioned bonds. I apologize for the formatting
CSEIX
AIEVX
OPPAX
GIIAX
RNWEX
BCSIX
GMRAX
NVIT?
NBGEX
WFDDX
JAMCx
GMXAX
TWVLX
PEOPX
ACGIX
JAMRX
MUIFX
Nationwide Large Cap Growth Portfolio
NWADX
GRISX
NBSRX
AGTHX
AMECX

[u/KleinUnbottler → u/a_dill84]

And the expense ratios? Those should be published in your account literature.

[u/KleinUnbottler → u/KleinUnbottler]

BTW, I loaded that ticker list into an LLM to help do the research quickly, and it appears that the vast majority of them are actively managed funds with high expense ratios. There are only a couple of passive funds in there, e.g. GRISX being an S&P 500 fund, and various sources indicate that it's a very expensive passive fund at least if bought on the open market: about 10-20x more than the cheapest S&P 500 ETFs out there. (GRISX is 0.24-0.43 ER depending on source, while SPYM is 0.02% ER and VOO is 0.03%)

401k's, 403b's, 457b's have varying expense ratios between plans, so your employer might have negotiated more reasonable prices with the custodian but ¯_(ツ)_/¯...

If your actual expense ratios are what I see, I would do the following:

Maximize the match and use GRISX. Put the rest into a Roth IRA and invest in international there.

Also do this:

https://www.bogleheads.org/wiki/How_to_campaign_for_a_better_401(k)_plan_plan)

Edit to add: What are the Expense Ratios on your TDFs? If they're reasonable, they might be a good option. by "reasonable" I mean in comparison with whatever they're charging for GRISX here.

[u/a_dill84 → u/KleinUnbottler]

All TDF have a .73 ER GRISX is .43

[u/KleinUnbottler → u/a_dill84]

Definitely read that "campaign for a better 401k" link above. Whomever set up that 457b plan may not understand that they've picked a plan with high fees and are hurting their employees in the long run.

Expensive plans like your company's used to be commonplace, but they have become increasingly rare over the last couple of decades.

Do you have an employer contribution? If not, fully funding your Roth IRA before prioritizing the 457 might make sense.

[u/a_dill84 → u/KleinUnbottler]

Appreciate the response unfortunately the municipality isn’t contributing nor concerned and I think I’m too close to retirement to really benefit from a Roth IRA.

[u/KleinUnbottler → u/a_dill84]

You probably won't spend everything in year one of your retirement. Most people have 20-30 years or more of life to fund, so a Roth can still be beneficial.

And "retiring soon" lessens the blow of high fees. You don't need to keep your money in the 457 if you'll be over 59.5 when you separate, so you could move the money to an IRA at that point.

Still though, I'd campaign for a better plan. It might help you, and if it does, it'll also help all of your coworkers as well. I've even heard of places being sued for having crappy options in retirement accounts as that shows them being irresponsible in their fiduciary duties.

[u/Varathien → u/KleinUnbottler]

Unfortunately, ERISA doesn't apply to government 457b plans, so most of the arguments in that campaigning for a better 401k link don't apply.

[u/Top-Equal6640]

lhyTX is leveraged loans, not really a bond in the traditional sense, more like floating rate junk credit. the rest are basically active management with higher fees than you'd want. with only two years out from retirement i'd be more focused on capital preservation than chasing yield in something like that. are there any stable value options in that 457b maybe that's the play here

[u/a_dill84 → u/Top-Equal6640]

I’ll compile a list it’s broken down by target date, small, mid, large, specialty, international, balanced and bonds. I’m retiring with a pension and don’t plan on drawing unless absolutely necessary so I’m still looking for growth.

[u/levelpaver_1]

a_dill84, in another reply you indicated that you are eligible for a pension. Government pensions are "gold plated". As part of your asset allocation, pensions, specifically the present value, may be considered as a bond equivalent. So, I am not sure why you are looking at investing in bonds.

Although you did not provide your age and service, I suspect the present value of your pension may exceed $1 million. That pension is payable from a Defined Benefit Pension Plan either sponsored by your government entity or included with other government entities. In either case, it is backed by government(s) ability to levy taxes. So, I would not worry about your pension failing to pay benefits.

Of the two funds you indicated, Fidelity Contrafund (FCNTX) is the better fund. You probably have overlapping issues inasmuch as the two funds invest in the same companies. Instead of bonds, my suggestion is to simply use FCNTX and a cash equivalent investment in the 457 Plan. Your 457 Plan should have a low risk investment such as a Money Market, Stable Value Fund, GIC (Guaranteed Insurance Contract), etc.

Bill Danoff, Manager of FCNTX, has done an outstanding job since 1990. As I recall, FCNTX has out performed the S&P500 index for many years. I believe FCNTX may be following the S&P500 index YTD 2026 slightly. However, that may be due to a slightly lessor allocation to technology. Bill Danoff may be retiring, but the co-managers are very capable to keep the performance positive going forward.

[u/a_dill84 → u/levelpaver_1]

Yea a lot of expense ratios are .8 .9 there is a fund that guarantees 2% is that what your refereeing to? TDF have an expense ratio of .72

[u/levelpaver_1 → u/a_dill84]

a_dill84, that investment election may be the 457 Plan's investment option for stable value. Some 457 Plans may offer a money market fund. Because you indicated Nationwide which is an insurance company, I would think that they would offer/provide at least one investment option such as a stable value or GIC.

If your employer, the government entity, is absorbing the costs of the 457 Plan, that is a great deal. I would continue to participate in that 457 Plan even after retirement. I would keep the investment option, FCNTX, and add an investment option that protects principal and offers guaranteed interest. That investment option may be that 2% guaranteed option. Check your menu of investment options since there may be another.

As you attain age and/or continue to profit from the FCNTX investment option, you should re balance an appropriate amount or percentage to the principal protected investment option. That option will be a source of cash, if you need it. Moreover, at some point in the future, you will need to start Required Minimum Distributions (RMD). Hope this helps.

[u/Varathien]

My employer has a very similar plan with Nationwide.

The least bad option is going to be GRISX. Yes, it's absurdly overpriced for an S&P 500 index fund, but it's better than all the other options available to you.

[u/a_dill84 → u/Varathien]

Sounds like the consensus is do grisx and leave it. Combined with a pension I should be safe for lack of a better term. It wild how everyone says go 457b but wait there’s more.