Thrift Savings Plan Guidance for Federal Furlough

Thrift Savings Plan Guidance for Federal Furlough

The TSP just released a 3rd party study  conducted by Hewitt EnnisKnupp to review the product offering of funds within the TSP.

I’m on record stating that I like the low fees and simplicity of the TSP, but I’ve always been an advocate for more TSP investment choices  like REITs, foreign bonds, and commodities to provide complete diversification within the TSP.  I would be OK with having these items available as either TSP index funds (with a ‘Letter’ assigned to each new fund) or as options within a self-directed (brokerage) TSP option.

Unfortunately, after reading through the full report, I’m not convinced this was truly an ‘independent’ review- most of the Hewitt findings parrot the TSP’s mission statement and report findings such as: Continue reading


Thrift Savings Plan Guidance for Federal Furlough

The Thrift Savings Plan (TSP) has issued guidance on how TSP accounts will be administered under Federal Employee Furloughs (Sequestration).

Contributions:

  • TSP contributions – Both Agency (Gratis) and Matching- will be throttle back in accordance with what you are actually paid (not ‘base pay’) during furlough pay periods.
  • Can I stop contributing to the TSP?
    Sure.  Just recognize that by stopping contributions, you also stop TSP Matching contributions, which is like leaving free money on the table.  Confused? Here’s more info on the  Types of Contributions to your TSP.

 Can I take a financial hardship withdrawal? Yes, but note:

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(Update 3/12/13: There are now TEN ways you can fight back.  Check the value of your FERS Life Insurance (gratis) benefit). 

It’s time for GubMints to stop chirping about furlough news and help you get in fiscal shape.  Here’s 9 ways to help you look like you were chiseled out of a piece of wood!

  1.  Ditch your landline at home.  If you still ‘need’ to have a landline (i.e. you have a commuity gate, monitored alarm, etc), get an OOMA box for your landline.  All that is necessary is a high-speed internet connection (>384Kbps upload speed).  With OOMA, you get unlimited calling, caller ID, call waiting, and voicemail for almost free (You pay only your state’s 911 Tax/Fee each month).  GubMints has been using OOMA service for over 1 year now.   Savings of $10 – $30/month.

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