Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Lower TSP expense
Old 04-26-2008, 05:01 PM   #1
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Lower TSP expense

For all those Fed gummit employees or former employees and military or former military: I don't know if this has been posted before, but the expense ratios for the Thrift Savings Plan are now 0.015%!!.

- Alec
ats5g is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-26-2008, 05:13 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,733
Quote:
Originally Posted by ats5g View Post
For all those Fed gummit employees or former employees and military or former military: I don't know if this has been posted before, but the expense ratios for the Thrift Savings Plan are now 0.015%!!.

- Alec
Tell me again why the President and other Republican's proposal to allow younger workers to invest a portion of their SS into a TSP open to all Americans was a bad idea? An ER of .015% wow
clifp is offline   Reply With Quote
Old 04-26-2008, 05:33 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,318
Quote:
Originally Posted by clifp View Post
Tell me again why the President and other Republican's proposal to allow younger workers to invest a portion of their SS into a TSP open to all Americans was a bad idea? An ER of .015% wow
And everyone always says government programs stink. This is Federally overseen, privately administered (but under a contract, not as a for profit enterprise). Universal health care could go this route.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
donheff is offline   Reply With Quote
Old 04-26-2008, 05:37 PM   #4
Gone but not forgotten
Khan's Avatar
 
Join Date: Aug 2006
Posts: 6,924
Send a message via AIM to Khan
Quote:
Originally Posted by clifp View Post
Tell me again why the President and other Republican's proposal to allow younger workers to invest a portion of their SS into a TSP open to all Americans was a bad idea? An ER of .015% wow
Federal workers pay into SSA and into TSP (if they choose).
__________________
"Knowin' no one nowhere's gonna miss us when we're gone..."
Khan is offline   Reply With Quote
Old 04-26-2008, 05:49 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,733
Quote:
Originally Posted by donheff View Post
And everyone always says government programs stink. This is Federally overseen, privately administered (but under a contract, not as a for profit enterprise). Universal health care could go this route.
I agree that is one of the reasons that I am not horribly opposed to some type of government program for health care . Medicare is also reasonably efficient
clifp is offline   Reply With Quote
Old 04-27-2008, 11:24 AM   #6
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,337
Quote:
Originally Posted by clifp View Post
Tell me again why the President and other Republican's proposal to allow younger workers to invest a portion of their SS into a TSP open to all Americans was a bad idea? An ER of .015% wow
Why not let all of us with piss poor choices with high fees in our 401k's contribute to TSP?
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 04-27-2008, 11:56 AM   #7
Recycles dryer sheets
 
Join Date: Apr 2008
Posts: 54
At 34, I have been paying into the system for 20 years, 18 full time. I would gladly give up all future SS payout benefits if I could redirect the 12.4% (6.2% plus employer match) into the TSP. Even if I was restricted to an age appropriate fund like the L2040.

I am already being told I can look forward to only 75 cents on the dollar. Why would I want to continue to contribute to a losing investment.
Johnphx is offline   Reply With Quote
Old 04-27-2008, 12:06 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,671
Quote:
0.015%!!.


Makes one wonder why the average equity MF has an ER of over 1%, does it not?
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 04-27-2008, 01:13 PM   #9
Recycles dryer sheets
 
Join Date: Apr 2008
Posts: 54
Quote:
Originally Posted by mickeyd View Post

Makes one wonder why the average equity MF has an ER of over 1%, does it not?
The TSP advantage in three words: Not For Profit
Johnphx is offline   Reply With Quote
Old 04-27-2008, 04:21 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,733
I thought that TSP was administrated by a private company and they make money. Fidelity I think?

I am sure somebody fortunate it enough to actual have a TSP account will come along and correct.
clifp is offline   Reply With Quote
Old 04-27-2008, 04:45 PM   #11
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Quote:
Originally Posted by clifp View Post
I thought that TSP was administrated by a private company and they make money. Fidelity I think?

I am sure somebody fortunate it enough to actual have a TSP account will come along and correct.
clifp,

See Who administers the TSP.

I think one of the reasons that the TSP is so freakin' cheap is because there's sooo much money in the funds. The fund with the lowest $$ is the F fund with $13.3 BILLION in assets.
ats5g is offline   Reply With Quote
Old 04-27-2008, 05:12 PM   #12
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 116
Yes and not including the L funds there are only 5 funds choices. Many people complain about that, but John Bogle stated it was one of the best investment programs out there. Boring and simple are what wins.

Quote:
Originally Posted by ats5g View Post
clifp,
I think one of the reasons that the TSP is so freakin' cheap is because there's sooo much money in the funds.
Gworker is offline   Reply With Quote
Old 04-27-2008, 05:16 PM   #13
Recycles dryer sheets
 
Join Date: Apr 2008
Posts: 54
Quote:
Originally Posted by Gworker View Post
Yes and not including the L funds there are only 5 funds choices. Many people complain about that, but John Bogle stated it was one of the best investment programs out there. Boring and simple are what wins.
And the L Funds are simply preapportioned target date combinations of the 5 basic funds.
Johnphx is offline   Reply With Quote
Old 04-27-2008, 05:31 PM   #14
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
Quote:
Originally Posted by clifp View Post
I thought that TSP was administrated by a private company and they make money. Fidelity I think?
I am sure somebody fortunate it enough to actual have a TSP account will come along and correct.
The back-office nuts & bolts administrator is Sungard Data Systems. They took over (in 2001? 2002?) from a contractor who'd fallen flat on their faces and made a mess of the data. Sungard was taken private a couple years ago by the likes of KKR & Blackstone, but I don't know who's doing what these days.

SunGard - Wikipedia, the free encyclopedia

Whoever's doing it, I can't see how they'd be happier with 1.5 bp than with 3 bp. But spouse is twice as happy with her TSP account...
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Old 04-27-2008, 06:05 PM   #15
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Quote:
Originally Posted by Nords View Post
Whoever's doing it, I can't see how they'd be happier with 1.5 bp than with 3 bp. But spouse is twice as happy with her TSP account...
I'm sure they're plenty of people/contractors that would be lining up if the current peeps don't want to re-apply when the contract is up.
ats5g is offline   Reply With Quote
Old 04-27-2008, 07:06 PM   #16
Thinks s/he gets paid by the post
Texarkandy's Avatar
 
Join Date: Feb 2008
Posts: 1,281
Quote:
Originally Posted by clifp View Post
Tell me again why the President and other Republican's proposal to allow younger workers to invest a portion of their SS into a TSP open to all Americans was a bad idea? An ER of .015% wow
Quote:
Originally Posted by 2B View Post
Why not let all of us with piss poor choices with high fees in our 401k's contribute to TSP?
TSP is part of federal employee's compensation package - not a welfare program.

Just like FEHBP (Federal Employee's Health Benefits Plan). FEHBP would be destroyed by some of the proposals I've heard (from Dems) of allowing the general public to participate.

I'm sure some folks who work for large corporations that have good compensation/benefit packages would oppose allowing the general public to participate.
__________________
Retired 2009!
Texarkandy is offline   Reply With Quote
Old 04-27-2008, 07:19 PM   #17
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
Quote:
Originally Posted by Texarkandy View Post
TSP is part of federal employee's compensation package - not a welfare program.
Yeah, I bet that TSP is a heckuva recruiting incentive to get people to forsake private enterprise for public service.

I think Clif's question is well put. If the federal govt is capable of finding contractors to administer a tax-deferred fund with rock-bottom expenses and index choices, how hard would it be to make a similar program available for a portion of Social Security payroll taxes... or indeed, for any employee's tax-deferred contributions?

I think we've all seen how capitalism has served the "civilian" 401(k) system. Just about every day we see a post on this board asking whether an employee should hold their nose and invest in their 401(k) for the tax deferral, or just go with a taxable Vanguard index fund.
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Old 04-27-2008, 08:28 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
samclem's Avatar
 
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
Quote:
Originally Posted by mickeyd View Post

Makes one wonder why the average equity MF has an ER of over 1%, does it not?
Only one reason: Because some people are willing to pay that much.
samclem is offline   Reply With Quote
Old 04-28-2008, 05:56 AM   #19
Thinks s/he gets paid by the post
Texarkandy's Avatar
 
Join Date: Feb 2008
Posts: 1,281
Quote:
Originally Posted by Nords View Post
...........
I think we've all seen how capitalism has served the "civilian" 401(k) system. Just about every day we see a post on this board asking whether an employee should hold their nose and invest in their 401(k) for the tax deferral, or just go with a taxable Vanguard index fund.
401K's have more to do with oppressive taxation than they do with capitalism.
__________________
Retired 2009!
Texarkandy is offline   Reply With Quote
Old 04-28-2008, 06:03 AM   #20
Thinks s/he gets paid by the post
Texarkandy's Avatar
 
Join Date: Feb 2008
Posts: 1,281
Quote:
Originally Posted by Nords View Post
Yeah, I bet that TSP is a heckuva recruiting incentive to get people to forsake private enterprise for public service.
For those not familiar with federal compensation/retirement - the good ole federal pension system (CSRS) was sliced & diced into three pieces in the early 1980's by Reagan into something called FERS. The pension portion of the plan was significantly gutted.

Nowadays a fed retiree's retirement income comes from a 1/3 pension, 1/3 TSP Plan, & 1/3 Social Security. The SS portion of course you can't get till age 62 & there are penalties in the pension for retiring before something called your MRA (Minimum Retirement Age).

I think I speak for most feds when I say they would gladly be covered under the good ole CSRS plan where the retiree gets a full pension. (which by the way has a better COLA formula than FERS)

If it weren't for the special provisions in FERS for Law Enforcement / Firefighters & I had to look forward to retirement under "regular" FERS I would have left for a different career in the private sector long ago personally. (no offense to those of you out there under regular FERS - that's just me)

I have a BIL who retired a couple years ago from a medium size city police department whose retirement bennies are quite a bit better than my FERS.
__________________
Retired 2009!
Texarkandy is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Lower cost of living areas Moemg Other topics 58 03-04-2008 04:47 PM
Grad School or Lower Paying Job? PsyopRanger Young Dreamers 16 01-02-2008 07:26 AM
House prices to drop much lower: Greenspan retire@40 FIRE and Money 82 10-05-2007 08:58 PM
Diversifying Doesn't Lower Risk, But It Does Lower Potential Gain justin FIRE and Money 44 11-05-2005 04:16 PM
Lower your returns Now! unclemick FIRE and Money 22 05-28-2004 07:57 PM

» Quick Links

 
All times are GMT -6. The time now is 06:46 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.