Results 1 to 8 of 8

Thread: Expanding the TSP to Help Poor?

  1. #1

    Default Expanding the TSP to Help Poor?

    I tried to post this but I don't think I have posting permissions anymore, Tom?????

    https://www.fedsmith.com/2021/03/29/...oor-americans/

    How do others feel if these organizations can convince the powers that be to open the TSP to all American workers?


  2.  
  3. #2

    Join Date
    Aug 2011
    Location
    Mississippi
    Posts
    465

    Default Re: Expanding the TSP to Help Poor?

    I agree with the article in that if private folks are allowed into the TSP, it will no longer be managed with the federal employee in mind.
    Scott Harrison
    Senatobia, MS

  4.  
  5. #3

    Join Date
    Dec 2009
    Location
    Oregon
    Posts
    3,617

    Default Re: Expanding the TSP to Help Poor?

    Quote Originally Posted by slayer72 View Post
    I tried to post this but I don't think I have posting permissions anymore, Tom?????

    https://www.fedsmith.com/2021/03/29/...oor-americans/

    How do others feel if these organizations can convince the powers that be to open the TSP to all American workers?
    I'm not concerned, in favor or opposed to at this point. It's an idea that comes from one organization. There is nothing specific relative to how TSP is managed now and kind of ignores the fact that the TSP funds are managed by a private firm with guidance from the TSP Board. Would this change? As long as it was an investment account funded in part by participants contributions, which the TSP is now, and managed by a private firm like Blacklock, what would change? So, I need to see more details before being opposed to it. Will this or any other Congress or administration run with this "idea" and flesh out proposed details, who knows?

    ps -- I'd suspect that this idea would more likely have a significant impact on Social Security, like maybe ultimately its replacement. There will be plenty of opposition to that for sure.

  6.  
  7. #4

    Default Re: Expanding the TSP to Help Poor?

    I think Toms site will be as big as Facebook then,,,,,put me down for a few shares when it goes public Tom.

    Quote Originally Posted by rangerray View Post
    I agree with the article in that if private folks are allowed into the TSP, it will no longer be managed with the federal employee in mind.

  8.  
  9. #5

    Join Date
    Sep 2006
    Location
    Upstate NY
    Posts
    3,026
    Blog Entries
    45

    Default Re: Expanding the TSP to Help Poor?

    I don't think this is too wild of an idea. The problem is if someone is considered poor right now, how can they afford to contribute to a 401k to get the match?

    Though a sure can of worms in itself, a better place to start is allowing individuals to invest their social security contributions.

  10.  
  11. #6

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    2,105

    Default Re: Expanding the TSP to Help Poor?

    So you are spending $100B to get this off the ground with a 5% match? How many more government employees are they going to need to hire to manage this and what is that cost? You would face a lobby against this by Financial advisors. Some companies may lobby for it as they can get rid of their 401K programs and shift that cost to the Government. Although not all government employees have historically contributed very much to TSP so they started forcing agencies to automatically enroll new employees in it.
    "For federal employees hired after October 1st, 2020, five percent of their pay is automatically contributed to the TSP account and Uncle Sam matches this amount. For those who started working for the federal government between August 1st, 2010, and September 30th, 2020, their agencies set up an automatic enrollment with a three percent match."

    On the bright side, per the article
    "federal employees constitute a relatively wealthy portion of our society"

    How are they going to pay for this...don't think it has a chance.


    Quote Originally Posted by slayer72 View Post
    I tried to post this but I don't think I have posting permissions anymore, Tom?????

    https://www.fedsmith.com/2021/03/29/...oor-americans/

    How do others feel if these organizations can convince the powers that be to open the TSP to all American workers?

  12.  
  13. #7

    Join Date
    Apr 2008
    Location
    Cleveland, Ohio
    Posts
    10,703

    Default Re: Expanding the TSP to Help Poor?

    I'm retired and can't contribute to my TSP any more but I still have skin in the game. Since I retired I am averaging 15% a year. My high was 33.4% and my low was a minus 12.15%. If they open up the TSP and make it a "G" fund product I'm out. But then again I'm looking at my second retirement and I think I'll roll everything into my wife's and my 401K.
    May the force be with us.

  14.  
  15. #8

    Join Date
    May 2011
    Location
    Florida
    Posts
    1,671
    Blog Entries
    6

    Default Re: Expanding the TSP to Help Poor?

    One of the largest benefits of the TSP is the low cost / expense ratio. If they open it up to the public, I have no doubt the expenses will go up, which will not only eat into our profits, but also make the TSP less of a stand out option among all the other retirement plans out there.

  16.  

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
SPY (C Fund) (delayed)
Expanding the TSP to Help Poor?
(Stockcharts.com Real-time)
DWCPF (S Fund) (delayed)
Expanding the TSP to Help Poor?
(Stockcharts.com Real-time)
EFA (I Fund) (delayed)
Expanding the TSP to Help Poor?
(Stockcharts.com Real-time)
BND (F Fund) (delayed)
Expanding the TSP to Help Poor?
(Stockcharts.com Real-time)

Yahoo Finance Realtime TSP Fund Tracking Index Quotes