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.
It’s a well-documented fact that I am a big fan of the Federal Thrift Savings Plan (TSP), which is Uncle Sam’s version of the 401(k).
It’s also well documented that I’m a critic of TSP for being a bit too Vanilla. The Vanilla investment offerings in TSP are a likely cause for the $10 Billion in closed TSP accounts last year. Due to the wonders of the G Fund, I’m no advocate of zeroing-out your entire TSP balance, but recently FedSmith.com put together a good argument pointing out the ‘other’ fatal flaw in TSP- The inflexibility of TSP withdrawals. Continue reading
Recently FedSmith’s John Grobe posted a list of ‘TSP Allocation Services’ offering advice (at a subscription fee) for TSP participants. This includes the TSP’s own L Funds plus 3rd party allocation service providers. Among the most popular 3rd party advisers are:
I’ve been asked by some of the 3rd party TSP allocation advisers above if I would provide a link to their service- Here is my overview and rationale for not doing so below. Continue reading
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