Does the Government's Retirement Plan Measure Up?

Yahoo ^ | August 17, 2010 | Christine Benz

[Poundstone]

Question: As a government worker, I'm eligible to invest in the Thrift Savings Plan for my retirement. I'd like an objective view of the quality of the options, and I'd also like to be able to enter my complete portfolio on your site but can't find matches for the TSP funds on Morningstar.com. What do you think of the plan, and can you think of any funds that would be good proxies for the TSP's holdings? What is it missing?

Answer: I recently wrote an article about workarounds in case you can't find information for one of your investments on Morningstar.com. And the TSP options, while they have millions of investors in the U.S. government and armed forces, fall into that category. In short, I'd call the plan a winner and well worth investing in if Uncle Sam is your employer.

[Poundstone]

As a federal retiree, I've decided not to roll over any of my TSP account into an IRA (and we're talking about $500K). The TSP is a first-class, ultra-inexpensive 401K fund and I'm very satisfied with it! Fellow Feds, any comments?

[Lion Den Dan]

After loosing a bit more than 40%, I rolled mine into money then gold. I have now gotten back to where I was in 2007/

[japaneseghost]

You are a federal employee with half a million dollars in your retirement fund, and you have the nerve to brag about on FR?

ARE YOU EFFING NUTS?

We are losing are homes in foreclosures, declaring bankruptcy and you have the effing gall to post on FR that you are a federal employee with a half million dollar retirement fund?

Is anyone from WAPO reading this? This is crazy!

[muawiyah]

The way you get to a half mil is remarkably simple ~ you put your own money into it.

Did you imagine federal employees don't know how to save?

I've known people who've lived on lawn furniture inside their homes for 30 years to sock away for their retirement.

[preamble]

i am a temporary employee putting money in TSP.

The expense ratios of the funds are less than Vanguard.
And Vanguard is one of lowest in industry.

so i probably will leave my funds in TSP.

[muawiyah]

The S-fund is pretty much the same as the Russell 4500, but if you watch it close and go cash randomly you will get the same return as the ETFs focused on the Russell 2000. The C-fund is pretty close to the S&P.

[castlegreyskull]

I enrolled in the Thrift Savings Plan as an officer in the Navy. I since resigned in April, and took all my money out of it, I wasn’t impressed, and like to keep my money closer to me. The TSP doesn’t give a person that opportunity, to bail fast.

[hinckley buzzard]

If you're satisfied with it, then what's your question? You can always roll it over to an IRA later if you decide to. When I worked for the feds I saved a tidy sum in my TSP, then rolled it into a sepira when I decided to join the private sector and make money the honest way.

[Poundstone]

My financial adviser has been advising me to roll over my TSP into an IRA because the IRA gives you more investment choices. But I really like the ultra-low expense ratio in the TSP, which no IRA can match.

[Poundstone]

I’m not nuts and what’s so crazy about this topic?

Take a look at the comments from other Freepers who have or have had TSP accounts — federal employees, retirees, and military members. Wise up, bub.

[RabidBartender]

If someone saved diligently for 30 years or so, especially through the stock market climb of the 90’s, I imagine half a million wouldn’t be that uncommon.