3:58 am, May 27, 2015

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  • 6

  • Except for the G fund, they are invested with private funds
    Aaron Kuperman
    The governments isn't maintaining stock portfolios for the four funds tied to indexes (the F,I,S and C) funds. They oursource to private companies who maintain index funds for a living. The private versions of those funds charge small fees, but have very high minimum deposits - however they are private index-based mutual funds. Perhaps the G fund should be available for anyone. It is really a super long term TIPS but more flexible. Perhaps there should be more options as well, such as funds tied to commodities (e.g. Gold), or real estate, or being able to buy other assets (long term bonds, stocks, EFTs, non-index mutual funds). But those are other issues.
    { "Agree":"1","Funny":"1","Insightful":"1","Disagree":"-1","Offensive":"-1","Troll":"-1" }
  • I think you mean BOGLE
    While he loves index funds, I don't. In fact, they've been horrible the past 11 years. Gold funds or REITs are exotic but they talked about adding those. I like the TSP except for the fact there's no self directed option. Many companies and even states like Utah have self directed options. To me, it's just one more reason to retire as early as possible and get that money working for me, rather than give it to Wall Street and have them make all the profits.
    { "Agree":"1","Funny":"1","Insightful":"1","Disagree":"-1","Offensive":"-1","Troll":"-1" }
  • What's Not To Hate
    I don't know that there is anything to hate. It's another government "I'll lead you by the hand because we know better." financial program, but for federal employees. Firstly, new hires are automatically enrolled and contribute 3%, which is matched by Uncle. Secondly, they can opt out, but Uncle still contributes 1%. Thirdly, The TSP offers investors 10 funds in which to invest. Five are individual funds (one dealing with government bonds and the other four tracking specific market indices) while the other five are "Lifecycle Funds" designed to professionally change the allocation mix of investments among the individual funds during various stages of the employee's Federal service. All TSP funds are trust funds that are regulated by the Office of the Comptroller of the Currency and not the Securities and Exchange Commission; thus, there is no ticker symbol to track actual performance (though with the individual funds except the G Fund, the comparable index is easily tracked). Employees may choose from any or all of the individual or Lifecycle funds in which to invest (any allocation must be expressed as a whole percentage) and may change their allocation for future pay periods at any time (if the request is received before noon Eastern time it is usually effective as of the close of business that day; otherwise, it is effective the following business day). If no selection is made the default is 100 percent allocation into the G Fund. As all funds except the G Fund have a potential risk of loss of principal, an employee is required to acknowledge this risk before investing into those funds. Employees may also choose to change the allocation percentage of their existing fund balances (referred to as "Interfund Transfers"). Prior to May 2008 employees could change the allocation as often as possible (limited to one per day) among any and all funds; beginning in May 2008 employees are limited to two unrestricted transfers per calendar month, all subsequent transfers must be into the G Fund only. So, some want to get out from the TSP so they can have their money work for them instead of Wall Street. WS financial institutions will always have a piece of your action whether they are on WS or down the street from you. The only thing I don't like about any of the TSP/401K etc. investment protocols is that participants believe they should never lose no matter the circumstances and expect the government (taxpayers) to reimburse them for any and all losses. I believe that if the participant doesn't do 'Due Diligence', TS; and that includes illegal/unethical actions by the broker(age). That is also part of 'Due Diligence' - scoping out the broker(age)'s operation(s). I believe there is the greed angle that blinds the participants; i.e., if it's looks too good to be true, it is; but they still go ahead because nothing untoward will happen to them because it's a sure thing. Why, they either make the money on the investment directly, or Uncle (taxpayers) reimburses them. I also believe that if 'Due Diligence' is done to the participant's satisfaction, and the investment results are negative it's all a gamble - ya ante up, and ya takes yer chances. I should not rely on others to cover my greedy gambling actions.
    { "Agree":"1","Funny":"1","Insightful":"1","Disagree":"-1","Offensive":"-1","Troll":"-1" }
  • Missing in Action
    Revenue Agent
    I miss the comments of Deployed Decoy and Celtic Wolf. I hope they are both safe.
    { "Agree":"1","Funny":"1","Insightful":"1","Disagree":"-1","Offensive":"-1","Troll":"-1" }
  • DD & CW
    I miss them also - hope they are both safe. Seems to me if someone wants to play with their money instead of using the TSP, they can take their toys to Wall Street and have fun on their own. Nonebody is sotpping them. Enough with the whining about the TSP.
    { "Agree":"1","Funny":"1","Insightful":"1","Disagree":"-1","Offensive":"-1","Troll":"-1" }
  • TSP is Arcane
    As a more sophisticated investor, I find the TSP limits on transfer arcane. First, deciding to transfer between accounts 3 hours before the market closes can cost you some big money. Our markets move too fast to decide 3 hours before they close whether you want to get in our out of the stock market that day. My wife's TSA which hold most state employee pension funds allows transfers to be completed by 3:59pm to be effective that day. The limits TSP puts on the number of transfer per month also limits you ability to get in and out of the market. If it costs them money then charge a fee for those who trade excessively. This limit was put in to stop a very limited number of people who were day trading. It's my money. If I want to day trade it then I should be able to. I retired and pulled half of my money out and have been doing much better in a self directed IRA using ETF's and being very conservative. Current employees who are unhappy with TSP should be allowed to do the same.
    { "Agree":"1","Funny":"1","Insightful":"1","Disagree":"-1","Offensive":"-1","Troll":"-1" }
  • { "Agree":"1","Funny":"1","Insightful":"1","Disagree":"-1","Offensive":"-1","Troll":"-1" }