Tag Archives: thrift savings plan

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

Posted in Retirement Planning, Thrift Savings Plan | Tagged , , , | 7 Comments

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

Posted in Retirement Planning, Thrift Savings Plan | Tagged , , | 1 Comment