The TSP, or Thrift Savings Plan, is making some crazy changes in 2022 that I can’t believe. They are adding thousands of mutual funds, but they are doing so by adding absurdly high expenses. I’ll talk about the specifics of this mutual fund window and a few other important thrift savings plan choices for 2022.
In case my ugly face is annoying, read this instead:
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Thanks, Rich! I enjoyed the review, and I don't think you'll have to worry about the TSP sponsoring your channel.
13 years for a mutual-fund window. Can you tell that the TSP board is grudgingly doing exactly what lobbyists, er, I mean, Congress asked them to do– and not a bit more? This is not the TSP that the board had in mind when military families started using it in 2002.
Why!? do politicians allow these theives into our savings system?
Lets not ignore what the TSP didn't change…and these are changes that most people want. First, in-plan Roth conversions. A standard feature in most large plan 401ks. This requires one to roll money out of the TSP to do the conversions. Second, one can't withdraw from a single fund unless all your money is in that fund. So, if I have money in the C, S, and G fund and want to withdraw money, it comes out of all three funds equally. Another win for rolling money over to an IRA. The TSP is only moderately successful for one reason, and one reason only….Feds have no other option for a 401k plan during their working years. Any wise person would roll all but $5,000 out of the TSP and take advantage of lower fees with more options.
Now that they changed, I didn't get my 6/4 payment. After being on hold for over 4 hours, which includes being disconnected after 3 hours. I was told would receive my payment on 6/15. I checked today, 6/16 and the money was deducted from my account. Great I thought. I also received an email from TSP stating that the payment would be direct deposited in my bank account on 6/21. They now take the money from your account six days before they deposit in your bank account! That's 72 days a year that you aren't making interest on your money. I think it's time to withdraw all of my money and invest it elsewhere.
PLEASE SEND COMPLAINTS. PLEASE. We know how our GOV works
ALL of those Updates are FROM CUSTOMERS. People asking for shit adds Up. It’s a lot. The MFW is insane. These are because of requests FROM CUSTOMERS to make these options. you do not HAVE to go into the MFW.
It's absolutely fucking abhorrent, and the only reason the cunts likely will get away with it is that they don't expect to face backlash, predicting — probably correctly — that most of their participants will be inattentive to the matter. One hundred and fifty dollars per year as a maintenance fee, and ~thirty dollars per fund-transaction — plus, a cap on contributions outside the core funds. It's a god-damned joke. All this, mind you, in 2022, when brokerage fees are at an all-time low, and when partnering with a major firm (as do various state-government plans) would thus grant low-cost access to a vast universe of traditional mutual funds as well as exchange-traded funds.
Yes, massive changes. Tanks a lot….
Is this feasible Rich?
I will just put 5% of the tsp matching and invest the rest on my Fidelity zero index funds FNILX/FZROX. Thanks
I’m so glad that I found your channel. Thanks!
How do I withdraw from tsp with out paying taxes ?
Thank u!
Rich, so if I understand you correctly, we will have an option in a 'mutual fund window' but do not have to opt for it? And by not opting for it (and not moving up to 25% of our funds, at least $`10k, and paying $28.75 per trade + whatever mutual fund fees apply), we will not have to pay the $95 + $55 annual mx fees?
So if we stay with G,F,C,S,I (and L Funds), then the biggest change is slightly higher fees (I say slightly higher but they are fairly significant…nearly 50% higher)? And we will still be limited to two free interfund transfers (renamed allocation changes) per month (third to the G Fund only)?
Otherwise, sounds like we will get some fancy app and have to give up our biometrics to log on. Did I miss anything? And I agree with you, this is a bit f'ed up. They took something rather simple and effective and made it much more complex.
Congrats on starting a channel. Mil finance education has been very slow to develop, if at all. AF is adding some type of financial literacy to its Amn Leadership School (~3 yr point of career); we'll see what that actually entails. As an AF retiree, I have been teaching about the funds for about 4 years now as an invited lecturer outside of the official curriculum at the local base here.
Just put 100% on the C fund
I’m going to be joining the military this summer, will I be able to contribute money that I earned prior to joining into my tsp?
Just wait until they push these fees onto the rest of the tsp.
Just found this channel. Awesome content!
Thanks for the info Rich.I haven't had a chance to read up on all the new changes coming to TSP this helps a lot.
That’s insanity. Start up an IRA somewhere else. Not in the TSP
I am over 50 so can contribute up to 27,000 per year. That is 20,500+ the catch-up of 6.5 thousand and divide by the number of pay periods in a year which is 26 so that is $1038.40 per pay period this way I do not go over my limit and continue to get the match throughout the year. As a sidenote I want to pay no fees as fees are no Bueno
That was excellent! Thanks for the update
Someone help me out here. How many of you are maxing your TSP as Rich says and, if so, how? I’m an E-7 with three kids in base housing. How is one supposed to contribute that much to their TSP? Or even a thousand a month at this time?
Thanks Rich
Thanks, Rich. You're the man!
Thanks Rich. I hope your channel blows up as well! Thanks for the vids and the advice!