Is there a TSP-like fund I can move into after 70.5?

[latebloomer]

imported post

With the billions invested in TSP, at 70.5 (when I'll be forced to leave the TSP) I was hoping to simply move TSP money into an IRA within a mutual fund - one that looks very similar to five offerings in TSP (G, F, C, S, and I).

 

[tsptalk]

imported post

Welcome latebloomer!

I'm sure there are many services you use to create an IRA account using the S&P 500 (C), an EAFE index (I), small caps(S), cash(G) and bonds(F).

You will also have many more options to diversify or consentrate your money into other sectors such as financials, health care, electronics or technology, utilities, etc, etc.

TSP simplifies things for us but you'll have many more options after TSP so I wouldn't settle for an IRA with only TSP-likefunds.

Thanks for joining us.
Tom

 

[yakers]

imported post

Tom has it right. The TSP system has made things simple for us in a generally good way. IRAs will require more choices and dealing with possible information overload but TSP like funds do exist. I would suggest looking at Vanguard and TIAA-CREF, they have some good index funds. And they have Target Retirement funds that are a lot like the TSP L Funds if you want something really simple. Pretty unexciting funds but almost as safe as the TSP which is still dependent on market performance. I currently plan to do something like that when I get to 70.5 but that is a long way off and I just may have fun spending it before then. I like the TSP L Fund which I use as a base but I get my excitement from individual stocks. So far they have done better for me but it is not a smooth ride. 

 

[Birchtree]

imported post

You don't have to leave TSP when you are 70.5 - you only have to start taking a required minimum distribution monthly so that Sam gets his share. However, if you start your own monthly withdrawal plan and shift funds gently into an IRA that is traditional you can still keep the majority of your funds working at reduced fees. Then later on think about shifting out of traditional IRA into a Roth IRA that provides dividend reinvestment.