<prompt> Human: Just got a new job that offers a 401k. I have a small 403b from a previous employer that I want to rollover also, but its 2000.I work for a small company that doesnt offer a lot of investment options for the 401k. I really want to invest in a low fee, passively managed index fund but that doesnt even seem to be an option.The investment choices are bond funds, equity funds, and money market funds. The fee on the bond funds theres only one choice is 0.74 and its been earning 4.88 since its inception. There are about a dozen equity funds choices with fees ranging from 0.86 to 2.55. Most of these funds seem to average 5-8 return. The fee on the money market account is 0.70 and it seems to be averaging 3.56 return. However, for both the money market and bond funds accounts the recent returns are much less than the average since inception. For example, even though it says the money market account has averaged 3.56 since inception, the past year has been only 0.06, five years have been 0.02, and 10 years at 0.45. The bond account is similar.These all seem like pretty crappy options to me. I dont have to invest 100 of my contribution to any one of them, e.g. I can put 75 in equity funds and 25 in bond funds, etc. Obviously Id like to maximize my returns while minimizing my risk. I wanted to do that by investing in a low fee index fund, but that doesnt seem to be an option.So whats the next best choice?edit: typoedit2: My employer does not provide a matchAssistant: Does the company match any part of your contributions? If so, you can pretend the yield is higher. These funds all seem very expensive load-wise.So, if the company matches, say 50 up to a max of 4, put 8 in the money market fund, and youre effectively making a 50 return courtesy of the company match.If the company doesnt match, youre better off opening an IRA, and dont participate in the 401k.Roll over your 403b into the IRA to get started.Human: Also, wanted to add that my gross income is about 125k. I heard that this is too much to take advantage of an IRA. Does that change your assessment?  <response>: At that income level, you should use the 401k for tax savings alone. Yes, the fund choices arent ideal, but odds are you wont be in this job for the rest of your career. Pick the best balance of potential returns vs. fees and go with it. Unfortunately, having worked for a few small employers, Ive been in similar situations where theres no amazingly low ER fund options. 