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Old 01-15-2007, 02:00 PM   #1
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TSP

Yes, I like the low admin costs of the TSP, as several of you have pointed out. But reading the website last night I discovered that the TSP is actually administered by a GOVERNMENT agency, and not an independent outside source. which brings me right back to why I joined this board in the first place. I have to find some place to put my money 19 months so that the Feds have NO CHANCE of "borrowing" from it.

Provided the inmates cooperate, I think I'll spend the night investigating Vanguard.
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Re: TSP
Old 01-15-2007, 02:22 PM   #2
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Re: TSP

I guess I have a hard time understanding why you are concerned, but then again, I have never fully trusted any of my employers. I imagine that if I worked fro uncle scam I would probably feel the same way.

FWIW, take a look at Schwab, Fidelity and Vanguard. You can buy ETFs for peanuts at any brokerage, so make sure you pick one that will meet all of your needs (not just mutual funds and a low ER).
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Re: TSP
Old 01-15-2007, 02:23 PM   #3
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Re: TSP

IM,
What exactly are you afraid of? The government can't take a nickle out of your TSP (unless you've done something illegal in order to get the money). I think it would enjoy the same/greater protection in the TSP as it would in a private Vanguard account. And, it would grow tax free. And you'd get slightly lower expenses.

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Re: TSP
Old 01-15-2007, 02:44 PM   #4
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Re: TSP

I think the only money the government could 'borrow' under anything resembling normal circumstances is the G fund and, by definition, they've already borrowed that. It seems that anything else would take an act of congress, giving you plenty of warning.

Then again George just might try a signing statement...
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Re: TSP
Old 01-15-2007, 02:55 PM   #5
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Re: TSP

They administer your paycheck, pension, Social Security and healthcare also....so what's the problem? FWIW, the "agency" you refer has less than 100 employees, so everything gets outsourced, for example:

On September 5, 2006, the Federal Retirement Thrift Investment Board awarded solicitation - TIB-2006-R-003 to Barclay Global Investors of San Francisco, CA to manage the C, S, I and F Funds. For more information, see the press release.
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Re: TSP
Old 01-15-2007, 03:52 PM   #6
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Re: TSP

Remember that the congresscritters use the TSP.
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Re: TSP
Old 01-15-2007, 04:19 PM   #7
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Re: TSP

While I still have a few years to go (6), as of right now I plan to leave my money in the TSP for the low admin fees you cited in your post after retirement. Could I change my mind when the time comes, possibly but it's doubtful. DW's 401k is gonna have to roll into someplace, and it's possible we might want to combine hers & mine into a single fund with Vanguard, but for now I'm thinking sticking with TSP till age 70 1/2. I think TSP is probably more solvent than just about anybody else. If they go down, it's time to move into the bunkers.
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Re: TSP
Old 01-15-2007, 04:58 PM   #8
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Re: TSP

Quote:
Originally Posted by martyb
I think TSP is probably more solvent than just about anybody else. If they go down, it's time to move into the bunkers.
Couldn't have said it better.

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Re: TSP
Old 01-15-2007, 05:12 PM   #9
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Re: TSP

It seems that the TSP is pretty secure, but I can sympathize with Mike. I have something similar, not federal and, while close, not quite the same degree of financial security as the TSP. But is is at risk to the greed of the politicans who are my soon-to-be-former-employers. If they feel the need to balance their budget I would prefer they do it with money other than a chunk of my retirement funds.
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Re: TSP
Old 01-15-2007, 06:36 PM   #10
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Re: TSP

Quote:
Originally Posted by martyb
While I still have a few years to go (6), as of right now I plan to leave my money in the TSP for the low admin fees you cited in your post after retirement. Could I change my mind when the time comes, possibly but it's doubtful. DW's 401k is gonna have to roll into someplace, and it's possible we might want to combine hers & mine into a single fund with Vanguard, but for now I'm thinking sticking with TSP till age 70 1/2. I think TSP is probably more solvent than just about anybody else. If they go down, it's time to move into the bunkers.
You have to keep his and her accounts separate.
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Re: TSP
Old 01-15-2007, 06:59 PM   #11
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Re: TSP

Quote:
Originally Posted by Khan
You have to keep his and her accounts separate.
Why?
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Re: TSP
Old 01-15-2007, 07:12 PM   #12
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Re: TSP

Quote:
Originally Posted by retiredbop
Why?

IRA = Individual Retirement Account, they cannot be combined by definition.

A widow(er) can combine IRAs/TSPs.
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Re: TSP
Old 01-15-2007, 07:26 PM   #13
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Re: TSP

Quote:
Originally Posted by retiredbop
But reading the website last night I discovered that the TSP is actually administered by a GOVERNMENT agency, and not an independent outside source. which brings me right back to why I joined this board in the first place. I have to find some place to put my money 19 months so that the Feds have NO CHANCE of "borrowing" from it.
Barclays runs the funds and Sungard Data Systems tracks the balances.

All the govt does is keep explaining to Congress why we don't need to have TSP funds for REITs, commodities, and beever ch33ze futures.

Want something to keep you awake at night? I hear that the government controls your paycheck, too, and even the currency is manipulated by a government agency. So on the scale of things to worry about, I'd put this slightly below the Doomsday Clock reset & PETA castigating me for wearing leather shoes.

When you retire, among other choices, you can take all your money out of the TSP and roll it over to Vanguard. However each IRA balance is tracked by Social Security number so that the amount of the RMDs can later be calculated & taxed against those same SSNs.

I guess the inmates aren't very sympathetic to these concerns, either...
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Re: TSP
Old 01-15-2007, 08:43 PM   #14
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Re: TSP

No RMD worries here. I'm going to start tapping it at 60, with every intention of hitting a zero balance about the time of either my 85th birthday or my wife's.
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Re: TSP
Old 01-16-2007, 06:57 AM   #15
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Re: TSP

Quote:
Originally Posted by Leonidas
It seems that the TSP is pretty secure, but I can sympathize with Mike. I have something similar, not federal and, while close, not quite the same degree of financial security as the TSP. But is is at risk to the greed of the politicans who are my soon-to-be-former-employers. If they feel the need to balance their budget I would prefer they do it with money other than a chunk of my retirement funds.
It is funny how different people react to these things. I am much more worried about trusting my money to Vanguard, Fidelity, or whomever than to the government. My paranoia leads me to make sure our private sector funds are diversified both by sector and by company. I wish I could roll all of DW's tax advantaged accounts into the TSP. I would feel a lot safer and I would know that the employees administering it have a mission to advance the participants interests. Could the government pass legislation to steal aways your TSP retirement funds? Sure, but they are 1000% more likely to do it through taxes and social security reform.
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