TSP Roth to Fidelity Roth IRA

Managing your TSP and alternate investment options after retirement or separation from service.

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Scarfinger
Posts: 615
Joined: Mon Jan 30, 2012 12:00 am

TSP Roth to Fidelity Roth IRA

Post by Scarfinger »

When the time comes I want to convert my ROTH to a Fidelity ROTH IRA. I have been looking at Vangaurd and Fidelity. I like Fidelity's lay out and it seems to be easier to navigate than Vanguard's. These funds seem to be the closest to the TSP funds.

(FXAIX) Fidelity 500 Index Fund: Exp Ratio 0.015%
(FSMAX) Fidelity Extended Market Index Fund: Exp Ratio 0.036%
(FSPSX) Fidelity International Index Fund: Exp Ratio 0.035%
(FXNAX) Fidelity U.S. Bond Index Fund: Exp Ratio 0.025%

Also Fidelity has some new funds called ZERO funds which are suppose to have 0.00 exp ratios.

Not being a stock trader and only really familiar with TSP funds, I am hoping to follow a monthly/daily season strategy using Fidelity. Does anyone have experience with fidelity. I am still at least 10 years out from retirement and gathering information. I could probably just call Fidelity and ask about trading within the funds, ect. ect., but I wanted to start a conversation.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Following Daily Seasonal # 139921 as a general guideline.

StihlGreasy
Posts: 5
Joined: Mon Jul 06, 2020 12:13 pm

Re: TSP Roth to Fidelity Roth IRA

Post by StihlGreasy »

Hey Scarfinger, I have experience with a Fidelity Roth, although I don't follow a seasonal strategy. I treat my Fidelity Roth as a way to gain exposure to things outside of what's available with TSP. What kinda information are you looking for?

The mutual funds you highlighted look like solid choices with very low expense ratios. While my largest holding still is a mutual fund (FBGRX), I have been transitioning most of my investments over to ETFs. I like these because they can be bought/sold instantly (like a stock) as opposed to mutual funds that wait until close of day. VOO (C) and VXF (S) are other ETF options that closely resemble TSP, although I'm not sure what their expense ratio is since I only track their price in a watchlist. My core ETF holding is VTI, which is the total US market.

If you feel like leaving a small amount for investments that are a bit more riskier, research the ARK suite of ETFs led by CEO Cathie Wood. They actively seek out "disruptive innovation" in various sectors, like genomics, AI/robotics, fintech, internet/tech, 3D printing, etc. Obviously past performance doesn't guarantee future results, and like you I'm just an average Joe, but they've been kind to me. We'll see how 2021 rolls.

Good luck, there's so many different options.

Scarfinger
Posts: 615
Joined: Mon Jan 30, 2012 12:00 am

Re: TSP Roth to Fidelity Roth IRA

Post by Scarfinger »

Thanks "StihlGreasy". This is exactly the kind of info I was looking for. Hands on experience. I was kind of thinking that I should stick with indexed mutual funds but you bring up a great point. It isn't the TSP and I have other options like ETF's. And, yes... there are so many options. Thanks for the suggestions.

So, I opened up a Fidelity Roth IRA last night. I put 500 dollars a ZERO fund to start with and will go from there.

Thanks for the input.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Following Daily Seasonal # 139921 as a general guideline.

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ubascuba
Posts: 37
Joined: Fri Sep 08, 2017 11:56 pm

Re: TSP Roth to Fidelity Roth IRA

Post by ubascuba »

If you plan on following a strategy, you will be better off using the ETF equivalents of those mutual funds. ETF's are not subject to the same trade restrictions.
Ubascuba
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Current PIP: 28.7%


“Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” ~ Winston Churchill

Bubba
Posts: 165
Joined: Thu Mar 05, 2020 3:40 am

Re: TSP Roth to Fidelity Roth IRA

Post by Bubba »

Scarfinger wrote: Tue Feb 16, 2021 11:26 am Thanks "StihlGreasy". This is exactly the kind of info I was looking for. Hands on experience. I was kind of thinking that I should stick with indexed mutual funds but you bring up a great point. It isn't the TSP and I have other options like ETF's. And, yes... there are so many options. Thanks for the suggestions.

So, I opened up a Fidelity Roth IRA last night. I put 500 dollars a ZERO fund to start with and will go from there.

Thanks for the input.
Great choice! I use Fidelity too. I really like their Select funds for monthly rotations. I've developed a system that has over 40% CAGR annually and right now my ETF system is getting over 120% annually. Good stuff!

So, since you're not a trader, this won't impact you, but another difference is that Fidelity allows you to access leveraged ETFs for free, while Vanguard makes you pay. You can still access Vanguard ETFs for free from Fidelity and access Fidelity funds for free from within Fidelity.

Solid choice.

Note that I think that Vanguard is also a good choice. :wink:

StihlGreasy
Posts: 5
Joined: Mon Jul 06, 2020 12:13 pm

Re: TSP Roth to Fidelity Roth IRA

Post by StihlGreasy »

Bubba - I haven't messed with leveraged ETFs, what sort of ones have you gone in on? I've thought about throwing some money at TQQQ but never pulled the trigger.

Bubba
Posts: 165
Joined: Thu Mar 05, 2020 3:40 am

Re: TSP Roth to Fidelity Roth IRA

Post by Bubba »

I'm frequently using SOXL, TQQQ, TMF (although now I'm not using it because of interest rate changes), ERX, NUGT, TNA, UBR and a few others. They make for awesome returns...and pain for other times.

visual18
Posts: 10
Joined: Wed Aug 01, 2018 11:23 am

Re: TSP Roth to Fidelity Roth IRA

Post by visual18 »

I just opened a Fidelity Roth account yesterday and deposited $6000. I want to buy some index funds that similar to CSI and experiment with the seasonal strategy. I am assuming from the post above that FXAIX is C fund, FSMAX is S fund, FSPSX is I fund, and FXNAX is F fund. I saw an expend fee of around 0.015% for some of the index fund. If I move the fund in and out of those index funds, how is the fee is computed? Is the fee computed at the end of the year or per transaction?

Scarfinger
Posts: 615
Joined: Mon Jan 30, 2012 12:00 am

Re: TSP Roth to Fidelity Roth IRA

Post by Scarfinger »

From what I understand, the fee is calculated daily somehow. And then it adds up to a yearly expense ratio that is stated for the fund you are in. I believe this is how most Brokerages do this. So if there are no commission, transfer, and misc. fees and you are in the fund x1 year... the expense ration should be that stated amount.

This would allow for you to move in and out of different expense ratio funds and be billed correctly. That's is my deduction.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Following Daily Seasonal # 139921 as a general guideline.

Scarfinger
Posts: 615
Joined: Mon Jan 30, 2012 12:00 am

Re: TSP Roth to Fidelity Roth IRA

Post by Scarfinger »

I ordered a trade in my Fidelity today: Your order to Sell 35.411 Shares of FIDELITY ZERO LARGE CAP INDEX FUND (FNILX) to Buy FIDELITY U.S. BOND INDEX FUND (FXNAX) in account ROTH IRA.

Going from a ZERO fund to a 0.025% expense ration fund. Learning as I go.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Following Daily Seasonal # 139921 as a general guideline.

visual18
Posts: 10
Joined: Wed Aug 01, 2018 11:23 am

Re: TSP Roth to Fidelity Roth IRA

Post by visual18 »

Scarfinger wrote: Fri Feb 19, 2021 11:27 am From what I understand, the fee is calculated daily somehow. And then it adds up to a yearly expense ratio that is stated for the fund you are in. I believe this is how most Brokerages do this. So if there are no commission, transfer, and misc. fees and you are in the fund x1 year... the expense ration should be that stated amount.

This would allow for you to move in and out of different expense ratio funds and be billed correctly. That's is my deduction.
I take it that the maximum fee I would pay for the year is 0.015%. Since I would move in and out of the fund, the fee would be less?

Scarfinger
Posts: 615
Joined: Mon Jan 30, 2012 12:00 am

Re: TSP Roth to Fidelity Roth IRA

Post by Scarfinger »

visual18 wrote: Fri Feb 19, 2021 12:04 pm I take it that the maximum fee I would pay for the year is 0.015%. Since I would move in and out of the fund, the fee would be less?
My understanding is if you moved into a fund with a lower expense ration than yes, it would be less. So for example, a Zero fund for 6 months and then a 0.015 fund for 6 months would be a total expense ration of 0.0075 for the year. **Now this is what I am assuming. I have not confirmed this with Fidelity.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Following Daily Seasonal # 139921 as a general guideline.

visual18
Posts: 10
Joined: Wed Aug 01, 2018 11:23 am

Re: TSP Roth to Fidelity Roth IRA

Post by visual18 »

Scarfinger wrote: Fri Feb 19, 2021 12:16 pm
visual18 wrote: Fri Feb 19, 2021 12:04 pm I take it that the maximum fee I would pay for the year is 0.015%. Since I would move in and out of the fund, the fee would be less?
My understanding is if you moved into a fund with a lower expense ration than yes, it would be less. So for example, a Zero fund for 6 months and then a 0.015 fund for 6 months would be a total expense ration of 0.0075 for the year. **Now this is what I am assuming. I have not confirmed this with Fidelity.
Thanks. I just put in my first order :) .

fish8me
Posts: 12
Joined: Thu Jan 07, 2016 10:36 am

Re: TSP Roth to Fidelity Roth IRA

Post by fish8me »

I've subscribe to you guys thread as I'm looking to the the same... I've just retired at 54 on (12/31/2020) and I want to transfer half of my TSP to a Fidelity Roth IRA. I've opened and account in Fidelity and have lifted the "hold" on my TSP so that I've can do rollover. I understand that the TSP form is valid for 60 days from the print date and has to be notarized on my side and signed by the receiver of the funds before returned to the TSP folks. My question is whether this can be rollover to a Fidelity Roth and withdrawable upon in 5 years when I'm 59.5??? Thanks for covering this subj...

Scarfinger
Posts: 615
Joined: Mon Jan 30, 2012 12:00 am

Re: TSP Roth to Fidelity Roth IRA

Post by Scarfinger »

fish8me wrote: Fri Mar 19, 2021 12:46 pm I've subscribe to you guys thread as I'm looking to the the same... I've just retired at 54 on (12/31/2020) and I want to transfer half of my TSP to a Fidelity Roth IRA. I've opened and account in Fidelity and have lifted the "hold" on my TSP so that I've can do rollover. I understand that the TSP form is valid for 60 days from the print date and has to be notarized on my side and signed by the receiver of the funds before returned to the TSP folks. My question is whether this can be rollover to a Fidelity Roth and withdrawable upon in 5 years when I'm 59.5??? Thanks for covering this subj...
Those are great questions and I don't know the exact right answer.

From Investopedia:
If funds are rolled over from a Roth 401(k) to an existing Roth IRA, the rolled-over funds inherit the same timing as the Roth IRA. That is, the holding period for the IRA applies to all of the funds in the account, including those rolled over from the Roth 401(k) account.

If you do not have an existing Roth IRA and need to establish one for purposes of the rollover, the five-year period begins the year the new Roth IRA is opened, regardless of how long you have been contributing to the Roth 401(k).3


That is why I opened a Roth IRA account now to meet the 5 year waiting period. But, you can always withdraw your principle from a Roth IRA at anytime. I am pretty sure that includes Roth 401K to Roth IRA. Traditional 401K to Roth IRA may have more restrictions.

Hopefully someone can give you a better answer.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Following Daily Seasonal # 139921 as a general guideline.

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Fund Prices2021-04-16

FundPriceDayYTD
G $16.56 0.00% 0.34%
F $20.66 -0.21% -2.53%
C $62.57 0.36% 11.92%
S $83.28 -0.04% 12.24%
I $38.19 0.63% 7.92%
L2065 $13.71 0.39% 10.49%
L2060 $13.71 0.39% 10.49%
L2055 $13.71 0.39% 10.49%
L2050 $27.99 0.31% 8.45%
L2045 $12.79 0.29% 7.92%
L2040 $46.72 0.27% 7.42%
L2035 $12.36 0.25% 6.82%
L2030 $41.20 0.23% 6.25%
L2025 $11.71 0.18% 4.93%
Linc $22.82 0.08% 2.45%

Pending Allocations

Under development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".

What else

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