New to retirement investing and opened my first Roth with northwestern mutual. Everything is going into mutual fund AANTX. I see an expense ratio of 0.75%. Was wondering if there are better options for a Roth?

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Northwestern mutual is a primarily an insurance company. There's no reason to have a retirement account with them. Transfer to a well known brokerage such as Vanguard, Schwab, or Fidelity. Buy low cost fund such as VTSAX, FZROX, SWTSX.

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Echo this. OP you may have been pressured into this by NM's aggressive sales people.

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Yes - would recommend VTI or any vanguard s&p or other tracking etfs that have a .04% expense ratio. 0.75% will cost you a lot in the long run (if you hold for decades could cost you hundred thousand plus) so I steer clear of anything that expensive.

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Not going to sugar-coat it, I would close it and move it immediately, to one of the big brokerages like Vanguard, Fidelity, or Schwab. You are paying tons of extra fees - both in outrageously high expense ratios AND probably load fees - that, when compounded over decades, could cost you tens or hundreds of thousands of dollars.

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NM sales guys are so aggressive

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VTI and VXUS (if you want international stocks). If you want bonds BND and BNDX. I do 60% VTI and 40% VXUS. No bonds.

.75% will eat a lot of return. Find an online compound interest calculator and plug in rate of return of 10% (historical annualised stock return) then try with 9.25% (after fees) you’ll be surprised by how much you’ll lose to fees. A lot of studies also found that fees is the single most important factor in returns.

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random walk

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The problem isn't the internal exp ratio (its a target date fund) . The problem is that it's an A share so you are paying a front load

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Echo what FA1 says - you’re paying a front load fee of over 5% PLUS a high expense ratio. I’m going to guess you were talked into buying some sort of insurance product as well?

I did the same thing early in my career, when I didn’t know any better. Fixed that error early at least, and I suggest you do the same. You can do a lot better using a basic account at Fidelity, etc., and folks on this forum will be all too happy to suggest low-fee funds that match your risk/reward tolerance.

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Try to keep expense ratio lower than .5 - many index funds have .02 - makes a huge difference over time

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Are you also paying a management fee on the account? If so move the account asap

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