TSP Rollover into 'WRAP Account' After Leaving Federal Service

[srp21]

Hello,
I'd love some insight into the following question:
I worked for the govt for 3 years (03-06). Upon leaving I had ~34,000 in my TSP (80% L Fund 2040; 20% I Fund). I left everything in the account upon departure. Of course, the account has dropped now to ~21,000. My new financial advisor is suggesting I rollover the account into something he can 'keep an eye on' closely and is specifically recommending the WRAP account.

I've heard various pros and cons on rolling over TSP funds into private investment vehicles...and I am not sure which way to go. There is a chance I may return to federal service in the near future.

Any advice?

Thanks!

 

[Birchtree]

Believe me when I say no one will keep an eye on your money the way you will. Suggest you leave the account intact incase you do return to service but in the meantime do an IFT and transfer your money into the C fund and wait on the improvements in the markets that are just around the corner. Set it and just watch it grow and you'll be whole before you realize.

 

[srp21]

Thanks for the response. What would be the advantage to leaving the account intact in case I return to federal service? (As opposed to starting over from stratch if I join again later).

 

[Birchtree]

You will continue to earn growth and you can manage your funds with limited fees. You just never know what your future holds - but the TSP account will always be available.

 

[Pill]

TSP fees are cheaper than Vanguard or any other investment firm or bank.

 

[tsptalk]

I agree. Unless you are interested in investing in other vehicles like gold, ETF's, REIT's, etc., or you'd like to be more active in your account (trading), you are probably better off in the TSP with the low fees.

Welcome to the message board, by the way.

 

[srp21]

thanks for all the input!

to the last comment - if i took it out, it would only be so that my advisor could invest it into something else (he's specifically talking about a WRAP account). So the choice is between stay in TSP vs. invest elsewhere in a private vehicle.

 

[KevinD]

Your "new financial advisor" is after those fees that these guys are talking about. I think the message is for you to do your homework.

Good luck with what ever you decide and welcome to the message board.