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Thread: TSP, stung by participants who ...

  1. #25

    Default Re: TSP, stung by participants who ...

    Why does the TSP care whether retirees leave it? They're not supposed to be a profit making agency. Are the numbskulls who run it getting bonuses based on retention rates or how many billions are in the funds?

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  3. #26

    Default Re: TSP, stung by participants who ...

    I thought this was an interesting comment at the end of the article...

    ""Can you show us on paper how ONLY being able to move your money 2 times a month is costing you performance? "-
    Answer: Absolutely. I would be happy to. Please come sit down with me for an hour, and I will show you my excel spreadsheets from 20+ years of being a TSP participant, and how 2 moves per month limits my ability to gain when the markets are moving.

    Jamesdeal said: "Controlling your own destiny" in a mutual fund COSTS money to the mutual fund. "

    Answer: The TSP is NOT a mutual fund. You need to go learn about the fundamental way the TSP's execution cycle works. There is three-day cycle where trades are executed and paid, and Blackrock (and it's predecessory) maintains a three-day rolling slush fund. The traders have a four-hour period in which to execute the needs of the day- the TSP cutoff time is noon, and the market does not close till 4 pm. Blackrock's traders are/were very good about using that four hour period to churn the slush fund, and earn MORE than the actual market over any given period of time. As a result, the MORE trading that took -place, the LOWER the costs were overall for TSP, because Blackrock was able to earn money in that period. Go look at the "expense per share" BEFORE and AFTER the trading limits were imposed, and you will see that costs went UP, not DOWN, when the limits were put in place. "

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  5. #27

    Default Re: TSP, stung by participants who ...

    Sounds like our James48843 wrote that. He did some great work figuring that out back when the limits were implemented.


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  7. #28

    Default Re: TSP, stung by participants who ...

    My TSP is up about 9% this year (thru 5/21). My Fidelity IRA is up over 25%. So which one has the higher costs?

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  9. #29

    Default Re: TSP, stung by participants who ...

    Most people likely leave because they know tag at the government can get a rule changed for political reasons and lock the tsp in some way. The fear is having your assets locked up because of some obscure rule change. Why deal with that? Just move out of tsp and don't look back.


    Sent from my iPhone using Tapatalk

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  11. #30

    Default Re: TSP, stung by participants who ...

    Quote Originally Posted by offroad View Post
    Most people likely leave because they know tag at the government can get a rule changed for political reasons and lock the tsp in some way. The fear is having your assets locked up because of some obscure rule change. Why deal with that? Just move out of tsp and don't look back.


    Sent from my iPhone using Tapatalk

    Where would a person start to look? And, are these other accounts as easily managed as TSP? I'm 11 months out until I retire and I want to make an informed decision.

    Frank

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  13. #31

    Default Re: TSP, stung by participants who ...

    I have a Fidelity IRA and a smaller one at Scottrade. Both are ideal for trading ETF's that mimic the TSP funds. They charge $8 - $7 a trade respectively. I'm sure there are other options as well.

    By the way, I left a chunk (about 25% of my balance) in the TSP when I left the government just so I could still have a TSP account. No regrets.

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  15. #32

    Default Re: TSP, stung by participants who ...

    Instead of creating incentives for retirees to keep their money in the TSP after retirement, they double down and try to figure out ways to keep you from taking it out easily. More education, seriously?? When I hear the Government say *educating* people, all I can hear is *here comes another sales pitch as to why your money should be kept in TSP*. Just like any other investment group would do. We expect this from commercial company's, that's how they make their living. I don't really think the education they say participants are asking for is the education they are going to provide. I would be more than happy to leave it all in TSP if only I had more withdrawl options as far as getting to MY money when I've met all the criteria. You really do get what you pay for and all that *lowest fee* hype is providing us with just that. Retirees are finding that out and opting out.
    Last edited by Blarney; 05-26-2015 at 12:33 PM. Reason: typo

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  17. #33

    Join Date
    Jun 2004
    Location
    Boiled Peanut, Georgia, USA
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    Default Re: TSP, stung by participants who ...

    At 70 1/2 years of age the FED makes you start taking out your TSP Savings! What the hell are they talking about? "We don't want you to but you have to".
    MANDATORY DISTRIBUTIONSmouse.gif
    03/26/2020
    CRUDE Oil
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  19. #34

    Default Re: TSP, stung by participants who ...

    Quote Originally Posted by nnuut View Post
    At 70 1/2 years of age the FED makes you start taking out your TSP Savings! What the hell are they talking about? "We don't want you to but you have to".
    MANDATORY DISTRIBUTIONSmouse.gif
    This rule of mandatory distribution has been around for a long time and it doesn't just affect tsp but also other retirement venues (401, 403, IRA etc.). Additionally, I'm wondering why would you want to keep it there for so long? Hmmmm i understand that there are are some advantages like handing it over to your loved ones so they can have a good start for future investing but with majority of members in this forum, i see a minority doing that. I remember when we used to do daily IFTs but they changed the rule and limited us to a mere couple of IFTs per month, well that is never going to change and they will never listen. They will always do what is in their best interest. My point is use TSP only if it fit your needs, if not move somewhere else where it can be more lucrative for you. I plan on retiring in 4 years but I can't touch my tsp till 10 years later so i will just keep it here. It's a good thing, I was able to find other venue that allowed me to accelerate my retirement option. ~Pyriel~
    Last edited by travelerlady; 05-27-2015 at 04:30 PM. Reason: Ipad stopped working

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  21. #35

    Join Date
    Jun 2004
    Location
    Boiled Peanut, Georgia, USA
    Posts
    60,791

    Default Re: TSP, stung by participants who ...

    I don't depend on the TSP for Retirement money, I get plenty and I would like to leave it in so when I check out the wife would benefit from the income. She would get 55% of my pension and a little SSA, but NO I can't do that MUST start withdrawing soon and I don't like it one bit!
    03/26/2020
    CRUDE Oil
    =$22.60 a Barrel, Daily Status -$1.89

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  23. #36

    Default Re: TSP, stung by participants who ...

    Quote Originally Posted by nnuut View Post
    I don't depend on the TSP for Retirement money, I get plenty and I would like to leave it in so when I check out the wife would benefit from the income. She would get 55% of my pension and a little SSA, but NO I can't do that MUST start withdrawing soon and I don't like it one bit!
    I agree ... but I think it's a tax thing ... you could consider incrementally converting it to a Roth. You will have to pay the tax, but you can leave the Roth, with all tax paid, to those you leave behind. At least that's what I understand. They just don't want you to die and not pay your taxes.


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