Category Archives: Thrift Savings Plan

Read these articles for a better understanding of the Thrift Savings Plan

Dangers of Taking Out a TSP Loan

Recently, Michael Kitces published an article titled, “Why Paying Yourself 5% Interest On A 401(k) Loan Is A Bad Investment.”  My first thought was, “If it’s a bad idea for a 401(k) loan, it must be even worse for Thrift … Continue reading

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5 Tax Planning Considerations of a Roth Conversion for Your TSP Account

Introduction Many people have taken advantage of the Roth TSP option since its inception in 2012.  However, there are still many federal employees and service members with most of their retirement savings in traditional accounts.  Naturally, this begs the question: … Continue reading

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TSP Rollover to an IRA Account—Should I do it or Not?

This is a question that I received the other day from someone who has a lot on his plate.  He’s getting his financial life in order and was trying to figure out whether a TSP rollover was the right thing.  … Continue reading

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TSP’s Lifecycle Funds: What You Need To Know

There are a lot of people who wonder what TSP’s Lifecycle Funds are, what they are supposed to do, and how they are supposed to invest in them. This article aims to answer some of these questions and provide a … Continue reading

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Why the Thrift Savings Plan Has Plenty of Diversification for Any Investor

This article first appeared as a guest post on Ryan Guina’s Military Wallet. Why Thrift Savings Plan Has Enough Diversification A solid investment approach requires a balanced, well-diversified portfolio.  Many people dislike the Thrift Savings Plan (TSP) because they feel … Continue reading

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Three Things About Thrift Savings Plan

TSP has the lowest investment costs of any investment vehicle out there. Take a look at Vanguard. Vanguard is generally regarded as the mutual fund industry’s low-cost leader due to its quantities of scale. When compared to their Vanguard counterparts TSP index funds are a fraction of even those. Let’s compare a $1,000 investment in the Vanguard S&P 500 Index Fund (.17% expense ratio) to the TSP C Fund (.029% expense ratio). That means for a $1,000 investment, Vanguard will charge $1.70 per year, while TSP charges 29 cents! By the way, in the mutual fund industry, an annual expense ratio below 1% is generally all right. However, index-tracking funds such as these should be below .5%, so you can see that Vanguard & TSP are both well below the industry standard. But TSP is better. Continue reading

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