Eric Patton

While I can't tell you what to do with so little information I will tell you my personal thoughts on this topic. In my belief it is always good to put as much money as you can into a ROTH when you are young and probably not hitting the limits on the annual contribution. The thought process of this is the tax benefits of deducting it today are not that great unless you are earning significant money, in which case you can't do a ROTH. The added benefit is time. The more money you put in early the more time it has to accumalate gains that will not be taxed (in theory and under current tax code).

Not knowing your current cash position or your tax bracket I can't recommend you do something or not on a public forum, but I can say that you just need to way the pros and cons of your current tax liability vs the growth over the next 35 years and you'll probably come up with the correct answer.

Congratulations. Not many employers offer pensions anymore and therefore you should consider yourself lucky. Both IRAs and Roth IRAs can invest in individual securities, so the more appropriate question is should I save in a IRA, Roth IRA or in a taxable acct. There are pros and cons of each, but here are some basic guidelines:

IRA: Most contributions are tax deductible, Growth is tax deferred, qualified withdrawals are taxable as ordinary income, and withdrawals are mandatory beginning the year after you turn 70.5.

Roth IRA: Contributions are not deductible, Growth is tax deferred, qualified withdrawals are tax free, there are no mandatory withdrawals but there are income limitations to contribute

Taxable Acct: Contributions are not deductible, Growth is taxed when realized, no limitations on withdrawals, etc.

This is just a 50,000 ft. overview of these vehicles. You should really speak with a fee only advisor from an independent RIA about your situation to get a more in depth analysis. Typically it is good to diversify your income in retirement as well as your assets, so a simple method for doing so would be to put money into all three types of accounts if you can.

I agree with most of the people on this post, but I go back to the old saying, "Fees become an issue in the absence of value." If you love the advisor and he is there when you need service, then I'd say it's a non issue. If you think he is giving you lackluster service for what you and the participants are paying, then it is time to go to the market. 1% to a participant, who based on your plan numbers has an average account size of $33k is probably reasonable as long as he is doing something to help the participants. If he just setup the plan and shows up once a year, then go to the market to find someone with better service and possibly better fees.

I would also recommend looking at your competition. Use this website or another if you'd like, to find out what type of plan they are offering and the fees associated with them. Competitors are great resources to see where you stack up, including in the 403b space on fees.

Good Luck.