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View Full Version : tsp loans to have an alternative moves



GUCHI
07-21-2011, 09:16 AM
i was just wondering if anyone had thought about taking out a tsp loan to have additional moves other than the 2 IFTs that they allow. i have not worked this out , just thought i would post to see if anyone could see an advantage to doing this. My initial thoughts would be to take out a loan say $10,000 and wait till the right moment and pay it back, then take out another since your loan would be payed back in full. does this sound like an option to anyone? :confused:

FundSurfer
07-21-2011, 09:25 AM
The time lag going into and out of a loan is too big for this to be effective. It takes weeks for them to process a request for a loan. It takes a while for them to process a check to pay off a loan as well. I don't see this as viable option. Besides, this process is a lot of paperwork.

Elgallo
07-21-2011, 10:05 AM
If you are under 50 years old this is like doing catch up to some degree; albeit with post tax dollars biweekly with your DCA

Frixxxx
07-21-2011, 10:23 AM
It would be easier to just put the $10K into G Fund.

If you wanted to have a 2.75% Loan and invest outside of TSP to get over that, then it might be viable. I wouldn't take a loan out of TSP unless you really could do better than market rates. Plus $50.00 for a trade is steep!