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TSP advising
Old 04-15-2019, 04:26 PM   #1
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TSP advising

Has anyone here used any of the TSP investing sites? I am retired but I'm not planning to touch my TSP for another 10 years or so and I'm leaving the money in the TSP for the low fees. (Once I want to use it, or if gov lowers the G Fund interest rates as they've been threatening, I'll move it out to Vanguard.)

I've been managing it myself but I'm inclined to get nervous about my allocations since I'm not exactly a finance whiz. I've already moved some out of the S and I funds and into the G (which I wasn't using before) but I hate to lose out on growth and would love to get advice from someone who consistently tracks the markets and can suggest an appropriate allocation.
I was looking at TSPsmart or TSP SafetyNet or TSPpilot: lots of stuff out there but they cost money! I'm cheap, uh, frugal - that's how I retired early.

I was just wondering if anyone out there had tried one that they would recommend.
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Old 04-15-2019, 05:18 PM   #2
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While I didn't use a TSP advising service, I do have some thoughts:


1) You need to determine what level of risk with which you are comfortable. That will dictate your investment allocation. Since you aren't using the money for 10 years, maybe something like a 60% C Fund, 10% I Fund, 10% S Fund and 20% G Fund would work for an initial allocation? Gradually decrease the C, S and I allocation percentages (increasing the G) as you approach the time when you need/want to use it.


2) The expense rates at Vanguard using their ETFs aren't THAT much higher than those of the TSP. Additionally, you can pretty much match the TSP investment choices using Vanguard ETFs. I moved most of my TSP money to Vanguard because I didn't like the restrictive withdrawal options available in the TSP at that time. Since I kept some money in the TSP, I can always move the money back if I want in the future.


3) I don't think I would pay for a TSP advisory service but then I'm comfortable making financial decisions. Maybe look at some of the investment allocation threads on this website (or on the bogleheads.org site) and then replicate something you like using your TSP fund choices?


Ultimately it comes down to you and your risk tolerance. There isn't a magic formula...there's only finding what you're comfortable with and what lets you sleep comfortably at night.


Lumpy
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Old 04-15-2019, 10:29 PM   #3
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what happensif you die while it’s still being held in the TSP? if it disappears i’d consider rolling it now.
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Old 04-15-2019, 11:38 PM   #4
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Thanks! That's a good point on the fees. I'll look at Vanguard's fees again. Seems like most 'experts' are saying the stock market is over-valued and overdue for correction, although they don't seem to think it'd be a huge drop. As usual, it's a guessing games as to when is actually a good time to move to safer investments; I just don't think my guess is as good as anyone else's! Ha
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Old 04-16-2019, 07:40 AM   #5
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Originally Posted by rk911 View Post
what happensif you die while it’s still being held in the TSP? if it disappears i’d consider rolling it now.

Not clear on the point you're trying to make but the beneficiary rules for the TSP are the same as any retirement account.


I wouldn't be too quick to move money out of the TSP because of possible changes to the G Fund, the one's that will vote on any changes are also invested in the TSP. There are also changes coming in Sept of this year to the TSP withdrawal options. The full details haven't been released but the intent is to allow more flexibility on when and how often withdrawals can be made.
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Old 04-16-2019, 07:43 AM   #6
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Just for a point of reference, I too think the market is "near" a high. My (actually our since I'm considering the overall portfolio for my wife and I) allocation is 40% stock ETFs, 50% bond ETFs and 10% cash (roughly). After a market correction, I'll adjust back to that ratio by selling bond ETFs and buying stock ETFs. That allocation gives us sufficient inflation protection (IMHO) while throwing off cash in the form of dividends from the bond ETFs. For me, it was pretty much "set it and forget it."

You can easily replicate that in the TSP if you decide to keep your money there.

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Old 04-16-2019, 06:06 PM   #7
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Take a look at the Lifecycle Income fund as an alternative to the G fund.
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Old 04-16-2019, 06:07 PM   #8
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Originally Posted by zinger1457 View Post
Not clear on the point you're trying to make but the beneficiary rules for the TSP are the same as any retirement account...
that's the point i was making. don't know anything about the TSP which is why i asked. thanks.
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Old 04-16-2019, 07:25 PM   #9
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Just for a point of reference, I too think the market is "near" a high.
The market spends a significant fraction of its time near a high. If it didn't, then it wouldn't be going up so much of the time.

I don't know the current stats, but about 24% of the time stock market indices are within 2% of their "up to then" all time high.

So I agree that the market is near a high. Near enough anyways.
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Old 04-16-2019, 09:55 PM   #10
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The market spends a significant fraction of its time near a high. If it didn't, then it wouldn't be going up so much of the time.

I don't know the current stats, but about 24% of the time stock market indices are within 2% of their "up to then" all time high.

So I agree that the market is near a high. Near enough anyways.

Until it's not. Hopefully the next correction won't be too major but considering I'm already retired, I don't want to gamble on it. I've never made a ton of money at a casino...
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Old 04-17-2019, 04:03 AM   #11
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what happensif you die while it’s still being held in the TSP? if it disappears i’d consider rolling it now.
it does not die. I attached 2 beneficiaries who will receive my money after I die.
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Old 04-17-2019, 09:48 AM   #12
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If you really want hands off, choose a Lifecycle fund. I reired 10 yrs ago and moved some money to Wells Fargo IRA for other investment choices and withdrawal options. All the money I have in the TSP is in the G Fund.
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Old 04-17-2019, 11:40 AM   #13
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NOTE: TSP beneficiaries are not all alike. Upon death, a surviving spouse can pretty much continue with the TSP account. However, upon death of that spouse, the beneficiaries will have some rough tax consequences. Part of my 'when I die' instruction book is advising my spouse to move the TSP funds to a discount broker IRA.

<According to the TSP, “If a beneficiary participant (Annuitant’s spouse) dies, the new beneficiary(ies) cannot continue to maintain the account in the TSP. Also, the death benefit cannot be transferred or rolled over into any type of IRA or plan.” If you are the surviving spouse and inherit your husband or wife’s TSP account your beneficiaries must claim the full amount as income the year that you die.> A 6 or 7 figure inheritance to the kids would be pretty rough tax-wise.

TSP - Ways to Safeguard Your Heirs Inheritance | Federal Employee's Retirement Planning Guide
https://www.tsp.gov/PDF/formspubs/tspbk31.pdf

I heard there were some Congressional discussions to ease the tax MEGAtorpedo with legislation to spread out the tax bill over more than just one year - I don't believe this happened.
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Old 04-18-2019, 05:19 AM   #14
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I went the opposite way. I moved an external IRA into the TSP and am staying with TSP throughout retirement. I could replicate most of the funds but not G.
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