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It is always wise to have a secure financial foundation. Here is a place to ask questions, exchange ideas and share information on how to make the most of your money.


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VesperLynd  
#1 Posted : Wednesday, September 23, 2009 8:32:03 AM(UTC)
VesperLynd

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I am a new hire with a large 401K balance from my previous employer.

Where can I go to get the best advice for possibly making a rollover to the TSP - or whether I should hold out and place some or all of it into a regular IRA?

Thank you, VL
zinger1457  
#2 Posted : Thursday, September 24, 2009 12:49:59 PM(UTC)
zinger1457

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Go to the tsp web site (www.tsp.gov) for information, you'll need to fill out a TSP-60 form. I did it when I started working for DOD and everything went smooth. The benefit of TSP is the very low fees compared to what most IRA's will charge. TSP doesn't have the selection of funds available with an IRA but for most of us the offerings are good enough.
debasisg  
#3 Posted : Saturday, October 03, 2009 12:22:00 AM(UTC)
debasisg

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I have a similar situation. I worked in the private sector for 18 years and contributed to 401K for last 12 years. However, my previous employment change time, I just rolled them into a Fidelity Rollover IRA instead of the new employer's 401K. Not sure if that was any good decision.

Fidelity charges are obviously higher. The reasoning was the availability of a wider selection of funds. Thinking of it now, I could also roll them over to an account at Vanguard as their fees are less.

My most recent job change has landed me to a Federal position with TSP. Now the same question arises all over again. Will the low fees in TSP get me better return than I would get from a wider and potentially better performing fund managed by some company like Fidelity or Vanguard? Not sure yet.
zinger1457  
#4 Posted : Saturday, October 03, 2009 3:18:13 AM(UTC)
zinger1457

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A comparison of expenses in stock index (S&P 500) funds which is what the TSP C-Fund is. The fees for a stock index fund are typically low since there isn't a lot of management that's needed.

TSP C Fund- .019%
Fidelity- .10%
Vanguard- .18%

There really is no benefit to select one S&P 500 index fund over another except for fees. If you select Fidelity or Vanguard it's probably because you want one of their managed stock funds. Check the fees closely, they will typically be in the .5-1% range.
terri77  
#5 Posted : Thursday, October 15, 2009 12:28:06 AM(UTC)
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I rolled over my previous 457(b), 403(b), and state retirement contributions into my TSP. Either the TSP or Vanguard, where I have my Roth, offer some of the best ER for investments.
TwoUnderPar  
#6 Posted : Thursday, October 15, 2009 10:21:00 AM(UTC)
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It would be very hard for commercial financial/investment firms to beat the TSP.

You will have to decide for yourself. Personally, I would roll everything to the TSP.
<font size="1"><font color=BLUE>Retired December 2011 at age 55 years-2 weeks-6 days.</font></font>
FlatBroke  
#7 Posted : Wednesday, November 04, 2009 4:24:25 AM(UTC)
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As a good general rule, it's better to roll over all old employer's retirement plans to your current employer's retirement plan or likely better still to a traditional IRA. I suggest you consider Vanguard or Fidelity if you wish to go with a traditional IRA. You have greater investing options in an IRA than in the TSP, albeit higher Expense Ratios. In any event you could always move monies from a traditional IRA into your TSP account.
peacefulgains  
#8 Posted : Thursday, November 19, 2009 5:38:17 AM(UTC)
peacefulgains

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TSP is a pretty good plan. Some people complain that it doesn't have enough investment options. But the bottom line is not the number of options but how much you can make. TSP has good funds, including their money market fund, which pays much more than other MM funds.
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