(Additional Info at the End of the Article) TSP Investment Window

[rangerray]

[h=2]TSP Investment Window Not New, and Not Just about Sustainable Funds[/h]


https://www.fedweek.com/fedweek/tsp-investment-window-not-new-and-not-just-about-sustainable-funds/

 

[tsptalk]

Nice. I hope they don't throw us a curve when they add their "new record keeping system", like make other restrictions.

The TSP however has had authority for more than a decade to create an investment window, similar to that available through some other 401(k) retirement programs, to allow investors to put at least some of their money in funds other than those the TSP directly offers.

That was a response to the desire of some investors for options beyond the five core funds and the lifecycle L funds that consist of mixes of those funds that differ according to the expected date to begin withdrawals. And it remains a key reason many investors choose to roll their money out of the TSP at retirement into retirement accounts with more options.


The TSP has said that it expects to begin offering that option in the middle of 2022 once it brings online a new record-keeping system that will allow for it; the current one doesn’t.


That will offer access to potentially thousands of outside funds from mutual fund companies and other financial companies. Environmental/social responsibility funds will be among those, but only as one new option out of many.

https://www.fedweek.com/fedweek/tsp-investment-window-not-new-and-not-just-about-sustainable-funds/

 

[jonfresno]

Right..

I'm guessing Black Rock might not be too happy. I think most would remain with the core funds though.

Nice. I hope they don't throw us a curve when they add their "new record keeping system", like make other restrictions.


https://www.fedweek.com/fedweek/tsp-investment-window-not-new-and-not-just-about-sustainable-funds/

 

[Bullitt]

...will offer access to potentially thousands of outside funds from mutual fund companies and other financial companies.

Wonder if these outside funds will be ETF's. Mutual funds would surely have trading restrictions.

 

[James48843]

Wonder if these outside funds will be ETF's. Mutual funds would surely have trading restrictions.

Not all mutual funds have trading restrictions. Only some do. I guess we have to wait to read the fine print once they unveil the trading window process, to learn what the trading restrictions are here. I’m going to assume the two trade per month limit applies equally the window. We shall see what the rules are in about a week. (Maybe).


Sent from my iPhone using TSP Talk Forums

 

[Bullitt]

Is there a list anywhere of the available funds and their associated fees?

 

[tsptalk]

Wonder if these outside funds will be ETF's. Mutual funds would surely have trading restrictions.

Trading Restrictions. Participants are only allowed to enter transactions for mutual funds. The FRTIB may establish additional restrictions. For a complete list of the types of investments and transactions that are restricted, you should contact an Alight representative at the Thriftline: 1-877-968-3778 from 7:00 a.m. to 9:00 p.m. ET Monday - Friday or visit the My Account website, https://www.tsp.gov/access-your-account/.

https://mfw.accessportals.com/portal/usta/assets/agreement/agreement.pdf

 

[tsptalk]

Is there a list anywhere of the available funds and their associated fees?

Once you sign into the MFW area, the list is on this page: https://mfw.accessportals.com/portal/usta/tools/research?view=fundPrices

I've downloaded the list: https://www.tsptalk.com/returns/TSP-Mutual-Funds.xlsx

 

[Bullitt]

Thanks for downloading it as an xls file. That really is an impressive list. I didn't expect such a great selection.

At first it seemed only high cost funds would be offered, but that is far from the case. Even with the current yearly fee and purchase fee structure, some options would still be perfectly fine. The question is, "what options do we need that aren't covered by what we already have?". I'm most interested in alternative investments, maybe a REIT. BKRDX might be good REIT option depending on how much you're willing to put up to mitigate the costs.

Fans of the gold miners - AGGNX tracks GDX and AGGNX is only .47% compared to GDX .51% so I'd call it even after the yearly maintenance fee.

A negative impact fees will have can bee seen in BTCFX - the bitcoin option. BTCFX has under performed BTC/USD by 3.5% in the past six months, largely due to the fee structure.

I'm sure there will be more input on the fee structure in the next few weeks and whether or not it's really worth it in the long run.