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Thrift Savings Plan Investors
Old 01-27-2022, 02:39 PM   #1
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Thrift Savings Plan Investors

Good Day
DW and I both left the work force in early Dec Now looking at the market craziness and are thinking when things ever settle down and hopefully recoup market losses to leave the US Government TSP for some better choices with either Vanguard, Fidelity or some others investment platform and just go with ETF's.
Since we have pretty good pension incomes not too worried about needing that income in the near future although who the heck knows in this turbulent stock market environment. In any case, would like to hear some thoughts from those folks who have moved investments from that TSP platform to something different and has it been as cost effective and profitable?
Thanks.
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Old 01-27-2022, 03:20 PM   #2
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For the long term, buy and hold investor, I donít believe that there is a better platform than TSP. Some may equal them, but none exceed their low expense ratios. Day traders may have difficulties with TSP, and if you and your spouse canít agree you may have difficulty unilaterally getting at the money (if that is a negative) but beyond that? I have a TSP account and a vanguard account, and would not consider changing them.
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Old 01-27-2022, 03:51 PM   #3
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Thanks Hawk Owl.
So, you kept your tsp and just opened a trading account with Vanguard? And, have you started withdrawing your tsp funds as income?
Thx
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Old 01-27-2022, 03:55 PM   #4
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I kept part of my TSP in the G Fund - there is nothing else like it. I moved a portion to Schwab where I can write checks to get QCDs.
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Old 01-27-2022, 04:46 PM   #5
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When I retired in 2008, I left my TSP balance in my TSP. It was only $1700. I forgot all about it until 2016. It was up to $3200. I was going to pull it out and move it to Fidelity where all my other accounts are but left it because the good folks on the fora said the G fund is unique. Okee dokee. Did that.



I have all my fixed income in my 401k. I retired last year after I turned 55 and my 401k has a great stable value fund and great options for withdrawals. If I didn't have a great SVF, I might move it all into my TSP G fund. G fund might be great as interest rates rise and bond fund NAVs drop.



If I had a boatload in a TSP, I would look hard at the withdrawal restrictions. If those fit your needs, then just leave it there. If they don't or you want to do more than index, move it out but leave some in the G fund. Once you close out your TSP, you can't get back in.
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Old 01-27-2022, 06:50 PM   #6
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Quote:
Originally Posted by HawkOwl View Post
For the long term, buy and hold investor, I don’t believe that there is a better platform than TSP. Some may equal them, but none exceed their low expense ratios. Day traders may have difficulties with TSP, and if you and your spouse can’t agree you may have difficulty unilaterally getting at the money (if that is a negative) but beyond that? I have a TSP account and a vanguard account, and would not consider changing them.
I don't have a TSP account but I wish I did. I think TSP, is really the model for how 401K, retirement plans should be in the US. Very low expenses, very easy to understand.

Now the TSP website needs work, as do almost all government website, but
plan is great. You certainly have more flexibility and Schwab, Fidelity, or Vanguard, but I see no reason to move money from the TSP.
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Old 01-27-2022, 07:15 PM   #7
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If I had a boatload in a TSP, I would look hard at the withdrawal restrictions.
TSP made major changes in 2019? and a lot of it involved changes to the withdrawal options, they seemed like major improvements to me, at least a lot better than it used to be. What do you feel is restrictive in the current withdrawal options?
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Old 01-27-2022, 07:22 PM   #8
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TSP made major changes in 2019? and a lot of it involved changes to the withdrawal options, they seemed like major improvements to me, at least a lot better than it used to be. What do you feel is restrictive in the current withdrawal options?

Dunno, didn't research it.
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Old 01-27-2022, 07:34 PM   #9
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I would definitely leave enough in TSP to keep the account open.

it has the G fund, for fixed income purposes.

and there is talk of the TSP having a lot of mutual fund choices soon. https://www.myfederalretirement.com/...al-funds-2022/
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Old 01-27-2022, 08:27 PM   #10
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For the long term, buy and hold investor, I donít believe that there is a better platform than TSP. Some may equal them, but none exceed their low expense ratios. Day traders may have difficulties with TSP, and if you and your spouse canít agree you may have difficulty unilaterally getting at the money (if that is a negative) but beyond that? I have a TSP account and a vanguard account, and would not consider changing them.
+1
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Old 01-27-2022, 09:29 PM   #11
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I left my money in the TSP. I have not taken any out of it yet.

I also have an account with Vanguard that was started prior to my retiring. I have not taken any out of it either.
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Old 01-28-2022, 03:42 AM   #12
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Thanks Hawk Owl.
So, you kept your tsp and just opened a trading account with Vanguard? And, have you started withdrawing your tsp funds as income?
Thx
Other way around. I had a retirement account (eventually transferred to vanguard) before I became eligible for tsp.

And my cashing out pattern is not as well organized as that. I live off my pension, and only dip into my retirement accounts for occasional episodic expenses.
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Old 01-28-2022, 06:01 AM   #13
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I retired from Uncle Sugar's Navy in 2018 with about 1/3rd of our investments in TSP. I left it there because at the time the low fees could not be beat.

Moved my IRAs to Vanguard and I'm thinking I'll move my TSP investments to Vanguard as well. I'm an index guy and the low fees at Vanguard are as good/better than TSP at this point and accessing the money is much more flexible.

I'm just inherently lazy, so I'm intimidated about the required Kabuki dance to move the money out of TSP.
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Old 01-28-2022, 09:07 AM   #14
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2022 will my 3d tax year in retirement. I have monthly installments from TSP and once yearly conversions to Fido Roth. If I just wanted to have my installments with no change, I wouldn't have to do anything but I want conversions every year up to top of 12% bracket so it requires pages 1-3 (installment), be notarized even though there is no changes and page 4 to be completed by Fido saying they will accept the money. Kind of cumbersome to do every year.

EDIT: my TSP is 100% S Fund and my Roth is monthly/quarterly dividend payers.
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Old 01-28-2022, 02:18 PM   #15
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https://www.barfieldfinancial.com/ne...h-my-tsp-again

This is a great website for TSP and FERS info. This article is informative as well.
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Old 01-28-2022, 02:27 PM   #16
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Also have a TSP and have left it alone after retiring in 2014. I looked at rolling it over to a brokerage, but was too much of a pain. It's in the L2050 plan and is making good returns. And with an expense ratio of 0.049%...well, no real reason to touch it.
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Old 01-28-2022, 02:56 PM   #17
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I've kept my TSP account since retirement in 2001, twenty years. I rolled over a small 401k account INTO the TSP a few years ago to reduce number of accounts I need to track.

As many have said, the G Fund is unique among bond funds, as interest rates increase, the value of the fund never decreases like other bond funds. For an indexer, the TSP is hard to beat. My current money is split between G fund and Life Cycle Income Funds.

Have no idea what withdrawal problems others allude to since the major revamp about two years ago. I've started RMDs but mine were very simple: the entire RMD went for year end federal withholding in lieu of filing estimated taxes.

Since I have a basis in Traditional IRAs, it is a very bad idea to role my 401k anywhere.
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Old 01-28-2022, 03:38 PM   #18
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My DH retired in 2014 and we kept our investments in TSP. I join in the chorus of others here singing the plan's praises. We have monthly withdrawals.
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Old 01-28-2022, 04:09 PM   #19
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I've started RMDs but mine were very simple: the entire RMD went for year end federal withholding in lieu of filing estimated taxes.

.


Thatís a great idea.
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Old 01-28-2022, 11:22 PM   #20
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As many have said, the G Fund is unique among bond funds, as interest rates increase, the value of the fund never decreases like other bond funds. For an indexer, the TSP is hard to beat. My current money is split between G fund and Life Cycle Income Funds.

Have no idea what withdrawal problems others allude to since the major revamp about two years ago.


+1
Lifecycle Income is a gem. Of course itís pretty easy to replicate the AA of the Lifecycle funds. Not sure if the ER is much different. Really glad to hear the revamped withdrawal options are beneficial to you. Weíre not doing withdrawals.
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