If you recall from last year, I resolved to roll all my IRA assets BACK in the the TSP, based on the following facts and theories:

  1. (Fact) TSP will soon allow much more withdrawal flexibility,
  2. (Fact) I’m not smarter than the market,
  3. (Fact) TSP Lifecycle funds have the lowest fees of any target-date fund, and
  4. (Theory) TSP Lifecycle funds are the best target-date funds available based on their cash-equivalent fund (the G Fund).

… so how about #4?  Any way to prove this theory in to fact?

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Maxing your 401(k) or TSP will help you get to this Happy Place faster…

There’s a lot of debate about how much you should put in to your TSP or 401(k) plan every year, and whether you should ‘front-end’ load your 401(k) at the beginning of the year, dollar cost average during the year, or back-end load your 401(k) at the end of the year for tax planning.

Here’s a 401(k) hack that works for me at the end of every calendar year.

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Thrift Savings Plan Guidance for Federal Furlough

Thrift Savings Plan Guidance for Federal Furlough

 

Recently the WSJ posted an article about all the bookkeeping, tax filing, legal, and administrative fees necessary to operate a company’s 401(k) program on behalf of its employees.  This, by the way, is on TOP of the expense ratios charged within the mutual fund investments available inside the Plan.
If you work for a small company, these administrivia fees add up (and NOT in your favor).  Vanguard – the low cost provider of all things investing- estimates these charges as totaling 0.25% in a very large company plan, and 0.58% for a smaller company plan.

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