Viva_La_Migra
Market Veteran
- Reaction score
- 56
That's not a racially stereotypical post at all! :stooges:
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Or you can now use TapaTalk again!TSP, stung by participants who ...
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That's not a racially stereotypical post at all! :stooges:
alevin
Market Veteran
- Reaction score
- 97
Back when they first started the tsp, they said over and over and over again that they didn't want the responsibility of "advising" people what to do with their tsp. and they so limited movement that what we have now is way better than what we had back then, if you newer people can believe that. I looked at my tsp about 2x/year or maybe only 1x/year when I got my annual hardcopy statement. I "rebalanced" about that often, because that was what I read was the right way to do things, tsp not for trading, etc etc etc. don't look at your account more often than that, etc etc etc. NOW they're talking about adding a fund to promote women-owned businesses in the name of "fairness" or something. PuhlEEESE! give me a break. talk about gov picking winners and losers, the market is supposed to do that. gov seems to have forgotten that part. I'm not asking for that kind of fund, don't want that kind of fund. If I want a new fund added, I want a gender-neutral fund like a frontier fund or an emerging markets fund or both, diversity in terms of world economy, hellloooo?
And thanks Mr. Long but no thanks, I've had to do without FRTIB "help" with my investing decisions for the past 30 years, don't need or want it now. BYE! :notrust: Can I put them on the DO NOT CALL List, please?
Boghie
Market Veteran
- Reaction score
- 165
Wow Alevin... The second they add some politic funds is the second I really start looking hard at them. I hope they give me a call about some fairness fund. I really do...
So, instead of offering a REIT or a commodities fund or a true emerging markets fund we are going to get some ill informed dope telling us to invest in a women-owned business fund. Nice, very nice. And, once they hire some chumps from Bangladesh to inspire investment in the Women Owned Business fund story our fees go up.
How bout this thought. Read the informed comments on the article. Maybe some of those talking about the fund options and the inability to change your distributions upon retirement.
alevin
Market Veteran
- Reaction score
- 97
Yeah I read the article, and the comments. I don't want their help or advice about withdrawing funds I've had to build on my own for 30 years. They have not listened to us in the past, and we all know that. so now they are offering to "help" us, and one of the ideas they are scouting is this. And it ticks me off as much as anything else they are talking about. they completely miss what we have said we want and float offering us stuff we don't want and didn't ask for.
and on the subject of somebody calling me to try to convince me to keep my funds in the tsp, everyone's situation is different, and they need to take their own time exploring all the pros and cons. I do not appreciate calls that I didn't initiate myself, on the subject of finances. For me, I anticipate rolling out about half to have more control over what I want on monthly basis and more flexibility to choose what portion of hte account to take that withdrawal from. I will probably leave half in tsp for more consistant predictable withdrawals, the way I'm looking at things right now. low-cost management is low-cost, be it tsp or vanguard or wealthfront.
New bill would create TSP fund focused on gender-diverse companies - FierceGovernment
Last edited: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. "
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.
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Lakebound
Analyst
- Reaction score
- 8
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
- Reaction score
- 1,590
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.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:travelerlady
Investor
- Reaction score
- 2
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:
nnuut
Moderator | TSP Talk Royalty
- Reaction score
- 210
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!
dougscott
Analyst
- Reaction score
- 16
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.
alevin
Market Veteran
- Reaction score
- 97
What I understand and have considered doing as well. Whatever portion of the tsp distribution I don't need to spend in a given year, will be added to a Roth account to grow taxfree. I might need to spend the growth later myself, and if I don't, someone else in the family would get whatever's in the account. that's me being optimistic that there will be growth and that I wouldn't need it all myself before it's over.
dougscott
Analyst
- Reaction score
- 16
So ... I wonder if TSP could allow participants to pay the tax on the "mandatory distribution" amount, converting it to Roth, while allowing the funds to remain in the TSP account? It seems that it should be considered a "distribution" if the tax is paid?? If we could do this in retirement, we could eventually convert the whole account to Roth and have no withdrawals. Does that make sense?? (I did not research this ... just a thought ... if anyone knows)
Frixxxx
Moderator
- Reaction score
- 130
The law states it must be disbursed and taxes paid. You can turn the difference into a Roth (non-TSP), but if you're retired, you can't contribute to TSP anymore.
dougscott
Analyst
- Reaction score
- 16
Understand ... I was trying to think of a way to "convert" and have that count as a "disbursement" without really withdrawing the funds, since TSP allows pre and post tax to commingle in the same account ... rather than withdraw TSP/IRA and then re-deposit to a separate Roth. Some incomes don't qualify to "deposit" to a Roth, but I understand anyone can convert IRA funds to a Roth. Interesting subject.
I did find this (below) on a Kiplinger site, which indicates the tax on an IRA can be paid with outside funds, but I am still not sure if that conversion would be considered a "disbursement"...
MYTH 7. You can’t win if you pay the conversion tax with IRA money. There’s no doubt that you’re better off if you can come up with the cash without tapping your nest egg. Using outside money to pay the tax bill effectively lets you shift money from a taxable account into a tax shelter and lets you keep more inside the Roth to enjoy glorious tax-free earnings. But using IRA money for the government’s share doesn’t necessarily make a conversion a bad deal.
Let’s say you convert a $100,000 IRA and use $28,000 of the nest egg to pay taxes on the switch. (This assumes you’re at least age 59 1/2 so you’re not hit with the 10% early-withdrawal penalty on the funds not converted.) If the account earns 6% a year, it will hold $128,941 ten years down the road. It’s all yours. If you don’t convert, your $100,000 IRA would grow to $179,084. But if you’re still in the 28% bracket, 28% of the money is Uncle Sam’s. Peel off his share and you have the same $128,941. (This example ignores state income taxes, but if state tax rates don’t change, neither would the outcome.)
Add other advantages of a Roth -- tax-free withdrawals in retirement can’t increase the tax bill on Social Security benefits, no mandatory withdrawals starting at age 70 1/2 (as with traditional IRAs), and anything left to your heirs goes to them tax-free rather than being taxed in their top bracket -- and it’s clear that a conversion can make sense even if you have to use IRA money to pay for it.
Read more at 7 Myths About Roth IRA Conversions-KiplingerSimilar threads
