Expert: Allen - 5/25/2007

Question
I have left my old position and will be starting work with the federal
government.  I have about $60,000 between a 403b and an employee-
sponsored fund.  I plan to roll them over and combine them.  The question is
whether I roll them over to an IRA or into my government Thrift Savings Plan.  
Any thoughts?

Answer
There is no simple answer to your question.

The most important factor is where you believe you have the best investment choices. I would roll to the government plan in you like the choices you are offered. Alternatively, I would set up an account at a no load and low cost mutual fund company (such as Vanguard, Fidelity or T Rowe Price) if you like their choices.

One other consideration is whether you prefer to simplify your life by having all your retirement assets in a single place or if you prefer to diversify.

Saying all that if it were me I would choose the government plan (assuming it accepts rollovers)because the investment choices are good and I would prefer to simplify matters. However, your priorities may be different from mine.