13 Years ago legislation was passed to update the Thrift Savings Plan. They finally got around to the refresh, but did the TSP change for the better?
In this episode we:
• Take a closer look at how the TSP did with delivering on their big promises
• Review changes to access and administration
• Explain the new TSP Mutual Fund Window
• Compare costs between the core funds you know and the new Mutual Fund Window
Welcome to Financial Planning 4 Feds. We are dedicated to educating federal employees on how to maximize value from their government benefits by developing and executing a financial plan.
0:00 Intro
1:33 Administration and Access
7:40 Fund Choice
15:27 Cost Comparison
Referenced Links
TSP.gov webpages and resources:
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Expense Ratio Average Costs from Nerdwallet.com:
Article from FedSmith.com:
Federal employees and their spouses are invited to complimentary educational workshops covering their federal benefits. For details, visit:
Federal Benefit Resources:
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The Thrift Savings Plan (TSP) has introduced several new features for federal employees and members of the uniformed services to help them save for retirement. One of the most significant changes is the TSP Mutual Fund Window, which allows participants to invest in individual mutual funds in addition to the TSP’s existing investment options.
The TSP is a retirement savings plan for federal employees and members of the uniformed services. It was created in 1986 and operates like a 401(k) plan. Participants can contribute a portion of their salary to the plan and choose from a range of investment options to grow their savings. The TSP is one of the largest defined contribution plans in the world, with over 6 million participants and approximately $650 billion in assets under management.
The TSP Mutual Fund Window allows participants to invest in a selection of mutual funds from various asset classes outside of the TSP’s existing funds. The mutual funds available through the window are managed by private investment firms, and participants can select the ones that best align with their investment objectives and risk tolerance. The window is intended to provide more investment flexibility for participants and is suitable for those who have a deeper understanding of investing fundamentals.
To access the TSP Mutual Fund Window, participants must have an active TSP account and be willing to pay the associated fees. Once they meet these requirements, they can log into their account and select the “Mutual Fund” option under the “Interfund Transfers” tab. The window provides access to 5,000 mutual funds from over 150 fund families, including popular funds from firms like Vanguard, Fidelity, and T. Rowe Price.
Another new feature of the TSP is the expanded withdrawal options. Participants who separate from service can now make up to four age-based or uniformed services accounts withdrawals per year. Previously, participants could make only one age-based withdrawal or one partial withdrawal after separating from service. The new changes offer more flexibility to participants who need access to their retirement savings while minimizing the impact of taxes and penalties.
Overall, the new features of the TSP demonstrate the plan’s commitment to providing its participants with more investment options and flexibility. The TSP Mutual Fund Window and expanded withdrawal options are welcome additions to the plan, and many participants are likely to benefit from them. However, it is important for participants to carefully consider their investment choices and seek professional financial advice before making any decisions that could impact their retirement savings.
Thanks for the video and tips. New hire 3yrs in, possible looking to rollover a previous 401K to my TSP. thanks again
Good video, good information. Thank you for explaining the new TSP mutual fund window. I think I'm gonna stick with the core funds. The app is very limited not a fan of it.
On past videos you've spoken a little bit on the TSP loans. Can you make a video on everything TSP Loans. Thank you.
I’m new to the government, so didn’t know anything before this current system. So far, I think that the updated TSP platform is generally easier to navigate and better than my last industry employee. The app is limited in its use- mostly you can just see your balances. Not sure I’ll use the app as a tool, unless there are planned updates to functionality.
Thank you for the video. I agree with the criticisms in prior comments and would only add that the new system did not transfer historical documents and data for individual accounts. How does that happen in this day and age? Is that really technologically complex? And, as far as I know, we were given no warning. Otherwise I would have downloaded all of my statements I hadn’t retrieved yet. For this and other aforementioned reasons, this is a case study in incompetence. I don’t even want to know how much money we as taxpayers spent on this frustrating “upgrade”.
We know it doesn't help with everyone's frustrations, but here is an article from FedSmith.com that speaks to them trying to fix the problems with all the recent TSP changes. https://www.fedsmith.com/2022/06/21/frtib-responds-to-congresswomans-inquiry-into-problems-with-new-tsp-website/?inf_contact_key=4f7b3a0b13942900aa5d4754475e2e80680f8914173f9191b1c0223e68310bb1
i cannot change my monthly installment payment from my tsp account monthly,amount they say to call the contact #,, so i called, they told me 71 minute wait after an hr i hung up…where are the answers nobody to help ghost contact phone #
How could they put this worthless system in, when nothing works retirees are in trouble my log in useless like their atrocious system i log in and they say call contact # to help change my monthly payments from my acct call no answer after 20 calls i quit phone went dead or all my minutes used up
I'm from the Govt. and I am here to help. We hired the same outfit that set up the ObamaCare exchanges, and look how those turned out. Welcome to the dumbster fire folks.
cannot even do a transaction…your description is total propaganda, like the people who implemented this worthless, nightmare system..Hotline phone # has you on hold for hours till u hang up…some one belongs in jail…
I agree. People who designed this website should be fired.
New TSP website is a disaster. The old website was much easier to navigate. Also, you cannot change monthly payments on new website.
Creating a new account login was awful. It didn't list my beneficiaries. It says it only loaded 10 years history when I've been in the program 30 years!