US Gov't Employee Thrift Savings Plan Changes

[GRR1865]

I know over the years there have been calls for access to additional funds. I thing this is there “fine if you want them, here they are” solution that doesn’t actually do anything.

[jazz4cash]

Quote:

Originally Posted by Out of Steam TSP Lifecycle Income was too conservative in the past, only 20% stock. It is moving over ten years to a more realistic allocation of 30%. Even for my conservative inclination, that's still a little low.

Too conservative for what? I was only plugging Lifecycle Income as an alternative to the G fund which some participants use instead of bonds but its more like a money market. I’m not aware of any adjustments to the allocation. Its currently 70% G fund, 6% F fund and ~24% stocks. G fund is great because it is zero risk but if you can tolerate a bit of risk Lifecycle I is worth considering.

[jazz4cash]

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Originally Posted by Lakedog --- was nice to see the rate creep up to 2.5% this month. .

Where do you find that rate of performance and what is the time period? I see .44% YTD thru March and 1.56 over 12 months.

[Lakedog]

Quote:

Originally Posted by jazz4cash Where do you find that rate of performance and what is the time period? I see .44% YTD thru March and 1.56 over 12 months.

2.5% is for the current month. When logged into your account, if you look at the loan rate it is the same as the current month G fund rate.

Also, this site shows the current G fund rate (and for the previous 12 months):

https://www.tspfolio.com/tspgfundinterestrate

[Out of Steam]

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Originally Posted by Amethyst I hope expenses for the C, I, and S funds won't rise.

Their information claims that they will not transfer expenses for the mutual fund window to participants who do not use that feature.

[teej1985]

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Originally Posted by jazz4cash I think Blackrock has managed TSP funds for a long time but they have added State Street to co-manage. Additionally they hired a new Fund administrator Accenture (which sounds like more cooks in the kitchen raising expenses). https://federalnewsnetwork.com/tsp/2...-21st-century/

The reason the mutual fund window has all these junk fees is because they didn't want the masses to subsidize access to that window. That's a good thing IMO.

[pc95]

Quote:

Originally Posted by jazz4cash Curious to know what others think about the expansion of the TSP to optionally include an expansive selection of mutual funds. TSP expense ratios have been rising dramatically lately and I think they have a new contractor to co-manage the plan so I see this as a means to make the plan more profitable for the plan managers. It is very good that they have put some fees in place to shelter the participants that do not partake of the new mutual fund options. Overall the costs seem exorbitant to me. Coming this June: the mutual fund window option The mutual fund window is designed for TSP participants who are interested in greater investment flexibility. If your account meets certain eligibility criteria, you can choose to access a selection of more than 5,000 mutual funds. As with most mutual funds, this flexibility comes with fees: $55 annual administrative fee to ensure that use of the mutual fund window does not indirectly increase TSP administrative expenses for TSP participants who choose not to use the mutual fund window $95 annual maintenance fee $28.75 per trade fee Other fees and expenses specific to chosen mutual funds If you choose to invest through the mutual fund window, your initial investment must be at least $10,000, and you may not invest more than 25% of your total account in the mutual fund window.

Talk about unneeded changes, how about needed changes, like allowing traditional to roth conversions within the account- where in the hell is that. I've been full ROTH since its opening in 2009 and traditional continues to dwarf roth, due to our matching structure - they won't match Roth - oh no, the government needs their piece of the benefit back in taxes - even would've taken a match % cut in roth to tax the benefit up front. Tax rates have a very good chance to rise in the future especially on the higher ends.

[jazz4cash]

Quote:

Originally Posted by teej1985 The reason the mutual fund window has all these junk fees is because they didn't want the masses to subsidize access to that window. That's a good thing IMO.

Yes I mentioned that but i don’t think it’s the ONLY reason.

[DenverDoug]

I wish they would allow you to specify which TSP fund you want to take withdrawals from. But regarding the new mutual fund options I will likely keep my portfolio in a mix of lifecycle funds. They have done great for me.