2013/10/162014/11/01 6 More Reasons to Love the TSP I had a chance to tune in to the recent TSP podcast interview with the TSP Executive Director. Here’s 6 more reasons to love TSP: 1. TSP is always open for business, even during federal furloughs and shutdowns. This is because TSP is funded by the (miniscule) fees from funds and contributions (from both Civilian and Active Duty participants. 2. The G Fund has never had a bad day. It is made up of a weighted average of available Treasury securities with maturities ranging between 4 and 30 years… but it acts like a money market fund(!). Today’s G Fund rate is 2.25%… you’d have to lock yourself in to a 5-year bank CD to get that kind of yield right now. 3. You can purchase stock in 5,000 companies for only 3 basis points (0.03 percent). The C Fund contains the S&P 500, and the S fund contains the next 4,500 companies. There is no overlap between the C and S Funds. 4. The money you have invested in TSP is safer than the money you have set aside in your Social Security Account. This is because TSP is 300% transparent- TSP is internally audited by CLA, the Labor Department (as administered by KPMG) , PLUS TSP receives periodic audits by the GAO. 5. TSP will not be affected by the whims of a particular Congressman or Senator. TSP was deliberately established to be Apolitical and stays out of the business of picking winners and losers. This is why all the investments are passive indexes and not managed funds or ETFs. While this keeps the choices rather ‘vanilla’, the investments won’t be monkeyed with as some congress critter’s pet pork project. 6. TSP will still make matching contributions on your behalf following a furlough. Anything that hits your Leave and Earnings Statement (LES) as ‘pay’ meets the requirements for Agency (gratis) and Matching contributions. TSP is there waiting for you when you get back. Subscribe to GubMints: via RSS: via Email: Related Federal Employee Benefits FERS Retirement Thrift Savings Plan FERS RetirementThrift Savings Plan