TSP Other Funds on the Horizon

[Guest]

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Hi All,

Followup Article from Fed Week.

Even as the L fund's launch is being prepared; proposals
are circulating on Capitol Hill to add one or more
additional funds to the program. One concept, which may
be the subject of a hearing in the near future, would be
to add a "real estate investment trust"-based fund; in
the prior Congress, bills were also introduced to
introduce a precious metals fund and fund that would
track stocks of corporations deemed to act in a
responsible manner. Proponents of these bills argue
that the TSP's range of choice is too limited when
compared with the variety of funds offered by private
sector 401(k) programs. However, the TSP traditionally
has been cool to the idea of incorporating such
specialized funds, arguing that the funds it offers
provide enough diversity for investors.

swsop

 

[Guest]

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That's interesting and good news. Thanks swsop!

 

[Rolo]

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swsop wrote:

to add a "real estate investment trust"-based fund;

haha...it'll be implemented just in time for the bubble burst!

 

[Mike]

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REIT's would be like an alternative F fund play. You'd want to buy them when you believe interest rates (and their associated mortgage rates) are going to drop. You'd want to sell them as soon as mortgage rates bottom out (and thus start to cool the housing market).

I would like to see precious metals / emerging markets added into the mix... of course, the gov't would fear people would lose their shirts in these areas, so to appease the micromanaging fed, I would be okay with these options even if they capped the percentage we could invest in them. I just want a low cost option to plunk a small percentage in to cover my bases. Otherwise, I have to do all this diversification in my Roth IRA, which takes a long time due to the cap on investment each year over there.

 

[cowboy]

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If you keep increasing how many funds you can be in there is going to be a fee in the future. If you want to play the risky stuff don't stick it in the tsp and do it outside as the more you request the more it costs. So I would not be for adding too much more to the funds. If you want to pay a fee to move your funds than keep requesting more funds to be in because that is where your headed. My thought is the TSP guru's really want more funds because then they can claim more work load and charge a fee for their services. This site and internal moves may be short lived if we keep requesting more services.

 

[Show-me]

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cowboy wrote:

If you keep increasing how many funds you can be in there is going to be a fee in the future. If you want to play the risky stuff don't stick it in the tsp and do it outside as the more you request the more it costs. So I would not be for adding too much more to the funds. If you want to pay a fee to move your funds than keep requesting more funds to be in because that is where your headed. My thought is the TSP guru's really want more funds because then they can claim more work load and charge a fee for their services. This site and internal moves may be short lived if we keep requesting more services.

Amen! More Funds more fees. You want choices listen to Rolo, Scottrade ect.

 

[Rolo]

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Higher fees may be a possibility, but I think the TSP will always be cheap because of the sheer volume and its guaranteed business, the benefits of a partnership/contract of this magnitude.

The expense ratios may be a bit higher for the more exotic funds, which would be appropriate, but they shouldn't affect the current funds' expense ratios.

Merely adding more index funds would be a nice perk, such as S&P 400 & 600.

 

[Show-me]

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Rolo wrote:

Merely adding more index funds would be a nice perk, such as S&P 400 & 600.

I agree with that. Add more "meat and potato" funds.

 

[Pete1]

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A bipartisanbill to add a REIT is to be introduced Monday. If we get a REIT, a 5-10% allocationof a 60% stock 40% fixed income portfolio buy and hold portfolioisnot unheard of. The Coffeehouseportfolio (a 60/40 portfolio) includes a 10% REIT allocation.