Roger Lawrence Wohlner

I frankly don't pay any attention to the Morningstar stars, though as Julian mentioned they have changed their fund ranking system so it will be interesting to see how this system works as a predictor of future perfomance.

Low fees are a great starting point. As one who starts with an asset allocation plan (as do many of my advisor peers) I look for opportunities to implement that allocation with low cost index funds/ETFs where it makes sense. With an index fund cost and adherence to the underlying index are all that counts.

Beyond that when and where I use actively managed funds, expenses are still important. Not so much that the fund needs to be the cheapest in its peer group, but I find that most of the active funds that I use have competitive expenses. I've not found a fund manager who is good enough to consistently justify costs that are well above average.

Jean this is an excellent question. The answer is that it depends. Many larger company 401(k) plans offer a menu of solid, low cost options with relatively low administrative costs due to their size and buying power. This is not universal to all large plans and many smaller and mid sized plans also offer solid options with relatively low expenses. You will really need to do a review of your former employer's plan. The 401(k) fee disclosures due to commence later this year might be of help to you in this effort.

On the flip side an IRA account can offer you more options and may be lower cost, esecially if you avoid banks or brokers that charge excessive fees and offer only higher cost funds, often with sales commissions involved. Best to look at fund supermarkets like Schwab, Fidelity, TD, and possibly Vanguard if doing this yourself.

I have to agree with the comments by Hilary, Rodney, and Jonathan. While I'm a huge Vanguard fan and use many of their funds and ETFs, Jonathan's comment about using one of their financial advisors is right on. While this might seem self-serving the fact is that there is turnover at the advisory units of any of the major fund houses and custodians. Unlike a financial advisor who works with a firm or who is in business for themselves, I would think it is harder to form that same bond with these folks no matter how client-oriented they are. At the end of the day they are salaried employees. As far as using a target date fund at your age I generally don't like TDFs for anyone over say 45. By that point in life and certainly at age 72 you should have a portfolio that is tailored to your goals, risk tolerance, etc. As for whether the 89 basis point fee is reasonable that's tough to say not knowing all of the details of your situation.