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When it comes to retirement planning, one of the most popular options for federal employees is the Thrift Savings Plan (TSP). The TSP is a defined contribution plan that offers federal employees the opportunity to save for retirement through a combination of their own contributions and employer matching contributions. While the TSP is known for its low fees compared to other retirement plans, it’s important to understand the truth about TSP fund fees.
First and foremost, it’s important to note that the TSP is known for its extremely low fees. In fact, the TSP has some of the lowest fees in the industry, which is a huge advantage for federal employees looking to save for retirement. The TSP’s fees are so low because it operates as a not-for-profit entity, meaning that it does not have to generate profits for shareholders like other investment firms.
The TSP offers a variety of investment options, including various funds that are made up of different asset classes such as stocks, bonds, and international investments. Each of these funds has its own expense ratio, which is the percentage of assets that is deducted annually to cover the fund’s operating expenses. The TSP’s expense ratios range from 0.04% to 0.087%, which is significantly lower than the industry average of around 1%.
It’s also worth noting that the TSP does not charge any additional fees beyond the expense ratios mentioned above. This means that federal employees can save for retirement without having to worry about hidden fees eating into their nest egg. Additionally, the TSP’s fees are transparent and easy to understand, which is a huge advantage for those who want to know exactly what they are paying for.
Another important aspect of the TSP’s fees is the fact that they are not affected by market fluctuations. This means that even if the market experiences a downturn, federal employees can rest assured that their fees will remain the same. This is a huge advantage over other retirement plans that may charge higher fees during market downturns.
In conclusion, the truth about TSP fund fees is that they are incredibly low compared to other retirement plans. The TSP’s fees are transparent, easy to understand, and not affected by market fluctuations. For federal employees looking to save for retirement, the TSP is a great option with low fees that can help them build a secure financial future.
I lost over $70K when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I find one source to recover my money, at least $9k profits weekly. Thanks so much Mrs Karen Cosmann.
And then there are the lost dividends and options which are eaten up by the TSP managers. Easily an additional 20% the federal employee never gets to seen that goes straight in the pocket of the TSP.
I think you have the Vanguard fee wrong. Vanguard Digital Advisor charges Vanguard Brokerage Accounts an annual gross advisory fee of 0.20% for its all-index investment options and 0.25% for an active/index mix. Vanguard Personal Advisor charges Vanguard Brokerage Accounts an annual gross advisory fee of 0.35% for its all-index investment options and 0.40% for an active/index mix. These services reduce those fees by the amount of revenue that Vanguard (or a Vanguard affiliate) retains from your portfolio in order to calculate your net advisory fee. Note that this fee doesn't include investment expense ratios—such as fees paid to the funds' third-party managers, which aren't credited.
Great content… would you recommend the ETF over the admiral shares of the mutual fund?
Heck yeah IRA’s where u get to invest 1/3 how much u can with all other plans
Cost must also be considered in balance with risk, correct?
What is the “outside the TSP” equivalent to the TSP Roth? I don’t think a RothIRA is exactly the same because of how contributions limits work, correct?