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Lower TSP expense
Old 04-26-2008, 06:01 PM   #1
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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
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Old 04-26-2008, 06:13 PM   #2
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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
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Old 04-26-2008, 06:33 PM   #3
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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.
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Old 04-26-2008, 06:37 PM   #4
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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).
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Old 04-26-2008, 06:49 PM   #5
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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
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Old 04-27-2008, 12:24 PM   #6
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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?
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Old 04-27-2008, 12:56 PM   #7
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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.
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Old 04-27-2008, 01:06 PM   #8
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0.015%!!.


Makes one wonder why the average equity MF has an ER of over 1%, does it not?
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Old 04-27-2008, 02:13 PM   #9
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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
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Old 04-27-2008, 05:21 PM   #10
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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.
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Old 04-27-2008, 05:45 PM   #11
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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.
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Old 04-27-2008, 06:12 PM   #12
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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.

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clifp,
I think one of the reasons that the TSP is so freakin' cheap is because there's sooo much money in the funds.
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Old 04-27-2008, 06:16 PM   #13
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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.
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Old 04-27-2008, 06:31 PM   #14
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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...
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Old 04-27-2008, 07:05 PM   #15
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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.
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Old 04-27-2008, 08:06 PM   #16
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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
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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.
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Old 04-27-2008, 08:19 PM   #17
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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.
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Old 04-27-2008, 09:28 PM   #18
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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.
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Old 04-28-2008, 06:56 AM   #19
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...........
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.
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Old 04-28-2008, 07:03 AM   #20
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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.
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