TSP G Fund- The Unicorn of Investing

 

4 Reasons TSP G Fund is the Unicorn of Investing

I’ve mentioned the Pluses and Minuses of the Thrift Savings Plan (TSP) here many times.  I’m on record stating that overall I’m a big fan of the TSP.

Recently, Congress passed regulations that automatically enroll new hires in to ‘age appropriate’ Lifecycle (or ‘L’ Funds) based on employee age.  This was done because the G Fund is viewed as being less lucrative or too conservative for most folks.  Before we dive head first in to L funds, let’s extoll the virtues of the TSP G Fund.

Here’s why I like the TSP’s G Fund.

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Thrift Savings Plan Guidance for Federal Furlough

TSP’s Executive Director is having a change of heart.

Recently the Federal Retirement Thrift Investment Board (FRTIB – the group who runs the TSP) announced that it will finally (and they really mean it this time) consider adding a Mutual Fund Window option to the TSP.    FRTIB is commencing a study that will last through 2015 on how best to implement the Mutual Fund Window option.   Continue reading

Federal Furlough Sequestration Survival Guide

Federal Furlough Sequestration Survival Guide

Not taking full advantage of your TSP Benefit?  Hope you like the taste of these in Retirement.

IRS recently increased the amount employees may contribute to their employer’s ‘Qualified Plan’ (That is, 401k, 403b, 457b, TSP… Just about any Defined Contribution Plan that starts with the number ‘4’) to $18,000 per year in 2015 (up from $17,500 in 2014).

Hey, Feds- Does anybody care?  It appears fewer than 1 in 4 of you do… Continue reading

TSP Hardship Witdrawal

TSP Hardship Withdrawal Costs

Recently the non-partisan (cough, cough) GAO conducted a study investigating large (> $5 Million) IRA balances.

According to WSJ, this study was prompted by the disclosures of Mitt Romney and Silicon Valley entrepreneur Max Levchin that they each have IRA balances worth tens on millions.

The GAO concluded in its preliminary study (GAO-14-878T):

In 2014, the federal government will forgo (emphasis mine) an estimated $17.5 billion in tax revenue from IRAs.

GAO will release a separate report with its final results on individual retirement accounts later this fall.

What prompted this study? Congress is reportedly upset about the super-sized IRA balances because (according to GAO) :

Congress limited annual contributions to IRAs to prevent the tax-favored accumulation of unduly large balances, but concerns have been raised that tax benefits accrue primarily for higher -income individuals.

Back to the cases of Mitt and Max… Continue reading