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“It’s a scandal,” said Turner, director of the Pension Policy Center in Washington. “They are trying to sell me an IRA clearly not in my interest. It’s in their interest. They want to get the fees.”

Well, maybe.
For real financial planners who charge by the hour for their services, there is really no reason to transfer the retirement savings to an IRA, assuming the TSP owner is seeking financial planning help, unless there's some pressing need for diversification into REITs, MLPs, utilities, etc...although for Federal Retirees, I'd be hard pressed to understand why, as the G, F, C, S, & I funds provide pretty good diversification.

But if a financial plan, with all of its parts, are needed...and most new retirees would benefit from such service...this is going to have to be paid for, and it is reasonable for some to use a % of Assets Under Management to pay for such services. I'm not sure if an advisor can be listed on a TSP account, but I doubt it. So if one wished to retain a financial planner and pay them as a % of AUM, they would likely have to roll over the TSP to an IRA. But this would be part of an overall plan, not something done in isolation.

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