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I think I will go ahead and just keep the Traditional IRA that I have, but will take some time to figure out what I should be investing in.

One thing to look for is, how much are you charged as an 'annual' fee where the TIRA is now? Even if it is minimal, that is something that you might not have to pay at Vanguard or Fidelity, and over many years, it can make a difference.

As for my current Roth IRA - I think I will transfer that to a fund family such as Vanguard. I do not want to be investing in the same index fund in my Roth IRA as I am in my 457 (deferred compensation) plan though.

Vanguard has many different types of index funds. Perhaps you might want to invest the small amount now in the Roth in Vanguard's international index (I believe they have one). Check first to see what their minimum investment is in each of their index funds.

Do you think it is smarter to invest in an index fund through my deferred comp plan, or through a Roth IRA?

Either one is good for an index fund. The bigger question is, which investment (457 or Roth) would be best for you? As the other poster stated, if there's no employer match in the 457, the Roth does have some interesting long term tax benefits over the 457. It depends on when you think your taxable income will be higher, now, or when you're retired.


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