Thrift Savings Plan Investors

[Out of Steam]

Several years into retirement, I can give one caution on the TSP.

It is not flexible enough to be used to get funds relatively quickly the way an IRA with a mutual fund company can be. I moved some funds from the TSP to TIAA last year as a backup to our personal savings and to fund Roth conversions.

 

[jgman]

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?

They will not wire funds from the TSP to a brokerage account. Will only send via check which takes a couple of weeks. Also you cannot specify which fund(s) withdrawals must come out of. They automatically are deducted out of all of your TSP funds proportionately. Finally I believe you are limited to one withdrawal every 30 days. I moved a big chunk of my TSP to Schwab as soon as I retired in early January. Received a nice transfer bonus.

 

[nash031]

I've been retired from active duty for two years, TSP makes up about 15% of my total invested assets, and is a significant chunk of money as I started saving in it in 2000 and maxed it most years.

I WANT to get out of TSP because I think the withdrawals are more restrictive than I would like.

I WANT to get out of TSP because I want to simplify my accounts and have fewer to track and manage.

I'm essentially barbell, though I don't have a certain number of years allocated to G... instead G is my entire bond allocation across my portfolio, thus most of my TSP resides in G right now.

Even really WANTING to leave, I can't justify doing so because of the low ERs and the access to the G fund. I'm also at least 15 years from being able to easily withdraw from an IRA anyway, so there my money will sit until I come up with a better reason to move the money from TSP... and I've been looking for better reasons for a few years... just haven't found one.

 

[donheff]

I got an email from the Thrift Board this morning. They are moving to a new provider in the summer and promise to be just like the big guys. Electronic signatures, mobile app, scan and transmit rollover checks, live chat. We shall see.

 

[cnocmmz]

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.

HawkOwl;2724721
On the TSP note, I guess the TSP platform will offering some outside trading here soon. My thoughts are to keep at least 200K in the G fund in case we decide to move the other funds out it.
On another note: Since we have now settled in, I would like to keep everything under one roof and have been interviewing investment firms and they all sound the same and charge between .08-1.4% of holding you give them. I just have a hard time giving that kind of $$$$ (in our case 12-15K) annually, especially in a down market lol.
Was contemplating just rolling over our 401K's over to my TD Ameritrade account and purchasing something like the Vanguard life strategy moderate growth fund or Fidelity, Schwab ETF's. Any suggestions for this?
-Also, going with a firm, not sure I can get my monies worth unless, all taxes, will, living trust is all inclusive for this cost?
Thanks for your input folks.
W/r

 

[cnocmmz]

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.

HawkOwl;2724721
On the TSP note, I guess the TSP platform will offering some outside trading here soon. My thoughts are to keep at least 200K in the G fund in case we decide to move the other funds out it.
On another note: Since we have now settled in, I would like to keep everything under one roof and have been interviewing investment firms and they all sound the same and charge between .08-1.4% of holding you give them. I just have a hard time giving that kind of $$$$ (in our case 12-15K) annually, especially in a down market lol.
Was contemplating just rolling over our 401K's over to my TD Ameritrade account and purchasing something like the Vanguard life strategy moderate growth fund or Fidelity, Schwab ETF's. Any suggestions for this?
-Also, going with a firm, not sure I can get my monies worth unless, all taxes, will, living trust is all inclusive for this cost?
Thanks for your input folks.
W/r

 

[SnowballCamper]

I'm staying with the TSP. The G fund has no market risk and yields more than cash.

A few days ago I looked at the Coverdell ESA for the kid and BND was down 10%. Not great to rebalance from a depreciated asset into a more depreciated one like VTI.

In the TSP I get to rebalance from an appreciated G fund, into the depreciated index funds. This is better, and the primary reason I stick with TSP.

 

[JDARNELL]

In the TSP I get to rebalance from an appreciated G fund, into the depreciated index funds. This is better, and the primary reason I stick with TSP.

That is a strange statement as I am usually looking at it from the other side. I never thought about it this way LOL.

 

[Lakedog]

I'm staying with the TSP. The G fund has no market risk and yields more than cash.

The G Fund is up to 3% yield so not a bad place to be currently.