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keep Fidelity 403b or rollover to TSP?

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  • keep Fidelity 403b or rollover to TSP?

    I have 403(b) through Fidelity from previous job. Invested into Vanguard institutional index plus (VIIX) (0.02%), Vanguard total international stock Is (VTSNX, 0.09%), and Fid US bond index Is (FXSTX, 0.035%).

    I have an option of rolling over into TSP at my current job, but should I do this.  Any reason to keep the Fidelity account for now? Maybe in future roll TSP into the Fidelity plan?  Otherwise my current expense ratios in Fidelity vs TSP (0.038%) do not seem to be like a dealbreaker.

     

     

  • #2




    I have 403(b) through Fidelity from previous job. Invested into Vanguard institutional index plus (VIIX) (0.02%), Vanguard total international stock Is (VTSNX, 0.09%), and Fid US bond index Is (FXSTX, 0.035%).

    I have an option of rolling over into TSP at my current job, but should I do this.  Any reason to keep the Fidelity account for now? Maybe in future roll TSP into the Fidelity plan?  Otherwise my current expense ratios in Fidelity vs TSP (0.038%) do not seem to be like a dealbreaker.

     

     
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    Sounds like you're between a pillow and a soft place.

    Depends on what your want/need on your overall portfolio. Keep in mind your options on TSP are limited:

    • C = S&P 500 (VFIAX, VINIX, VIIIX, FXSIX)

    • S = extended market, ie mid-small (VEXAX, FSEVX)

    • I = EAFE int'l, aka developed (sort of like VTIAX and FTIPX but no emerging markets)

    • F = US bonds (VBTLX)

    • G = a fairly unique guaranteed security backed by the government which will usually earn you inflation plus 1% or so


    ...so if you want anything besides those and have good options in your Fido 403(b), might as well keep it. On the other hand, if you're near retirement or need stability with G Fund, or want a cheap int'l developed markets fund with I Fund and will hold VEMAX/FPMAX elsewhere for your emerging, then rollover to TSP.

    There is probably no major impetus to do either, really.

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    • #3
      either one wont be a mistake. the expenses are rock bottom in both. i vote leave it alone. less paperwork. less room for error. and you get company diversification (which probably doesnt matter).

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      • #4
        I just left my 401a and 403b from residency without rolling over to TSP.  Expense ratio is comparable in your case (and mine).  Return rates was actually slightly higher at Fidelity compared to my TSP so I didn't roll over.

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