leaving service after 16 years roll tsp or not

[zibdi1]

I am going to be leaving my job after nearly 16 years of service. I'm trying to decide if I should keep the money in the tsp or roll it into an IRA or put it into an annuity. I have one advisor recommending an annuity 11. I'm leaning towards just leaving it in the tsp for another 20+ years until I'm able to take it out without the taxes and penalties and just opening up a seperate roth IRA. I like the security of it being in there plus not having to pay for transactions, etc... Any suggestions or other ideas would be appreciated. Thanks.

[yakers]

I would just leave it in the TSP. The TSP has a number of decent investment choices at a very low cost. Then when you start saving in a 401k or Roth or after tax account just include the TSP in your overall financial plan. But for core funds the TSPi s pretty good IMHO.

[Rolo]

zibdi1 wrote:
I have one advisor recommending an annuity
Let me guess: he's an insurance agent. What possible justification can there be for that choice!?

Roth: You'll pay taxes to convert it...no point in that.

Traditional: Might be a good idea...more fund/diversification/timing choices. Tax laws should be identical for both. There are plenty of no-fee options for opening an IRA.

Leave it: Not bad, but can you do better with a Traditional? (that's for you to decide)