TSP Hardship Withdrawal Costs

(Gubmints Note:  This is part of a multi-part post, which will also extoll the virtues of Structued CDs and Structured Notes, and provide strategies on how to use them.  At the time of this writing I hold an S&P Index-linked Structured CD in a Retirement Account).

With bond and bank CD rates near zero, investors have been scrounging everywhere they can to find respectable yields (Note, if you’re a Govvie the best place to park cash is the TSP’s G Fund– It gives you returns of long-term bonds with the liquidity of a Money Market Fund.  You can’t find a product like this anywhere).  Folks without a G Fund generating their current income may resort to chasing yields in complex products like Structured CDs.
A Structured CD allows you to purchase participation in an index (like S&P 500 or DJIA, but it could be any index) up to a participation ‘cap’.  Your initial investment value is guaranteed by FDIC insurance (which, per Dodd-Frank, is up to $250,000 per bank/instutution).  No downside with huge potential upside?  Sounds too good to be true!
Here’s Ten Reasons Structured CDs and Structured Notes Suck:


Review - Theory of Financial Relativity by Daniel R Moore

I discovered the observations of Daniel R. Moore when I stumbled across his blog while I was researching royalty trusts.  His website had the most cogent analysis of royalty trust valuation I could find anywhere, so I added his page to my RSS feed.

Daniel is who I like to call The Most Interesting Man in the Financial World.  Not because he earned his MBA from from Duke’s Fuqua School of Business, but because of his experience.
You see, Daniel has had ringside seats for the biggest financial freakshows of the past 3 decades:
Continue reading
Lending Club PRIME account

Lending Club PRIME account

I recently received suspicious daily emails from Lending Club indicating I had just placed orders for notes, or that notes have been successfully purchased in my Lending Club account.  The emails were frequent enough that I feared my Lending Club account had been hijacked.

I had not logged in to Lending Club for a few days, so I logged in and looked at my account. Continue reading


If you’re an investor (and anyone with a 401k plan is), you’ve heard of the “Lost Decade”- The first ten years of this century where investing in the DJIA or S&P 500 produced little or no returns.  Recent media reports value the Government Shutdown’s lost productivity at upwards of $24 Billion, but I think it’s going to be more- Here’s why you’re about to see the “Lost Quarter” (remember, you read it here first on GubMints.com).  Continue reading