transitioning vanguard funds to C fund equivalents

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board transitioning vanguard funds to C fund equivalents

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  • #17848
    rockville, md

    Hi TSPaul & others!

    As you transition your TSP from the S to the C fund, will you be following a similar strategy for your non-TSP investments.

    E.g., I have a Vanguard Roth IRA that has both Vanguard 500 Index and Vanguard Total Stock Market Index funds. To emulate your strategy, would it make sense to move the Total Stock Market Index Fund to the 500 Index Fund?

    In the same vein, would you do the same for investments outside of a Roth IRA? I also own both index funds mentioned above outside of my Roth IRA.

    Rockville, MD

    TS Paul

    If I were going to be in just one, I would choose the Vanguard 500 Index. But I’m not in a huge rush to be 100% large cap and I still have a bit in the Total Stock Market Index Fund as well. As we are in the transition period, I’m not feeling that there is an absolute hard and fast “right” fund to be in, so I’m comfortable keeping that relatively low percentage of my investments in this one for now (particularly as I hold that in a taxable account and I’m never in a rush to create a taxable event).

    All that said, I will definitely look at it again in a few months after my entire Thrift Savings Plan balance has transitioned across and at some point move those funds to Large Caps as well.

    The TSP Allocation Guide


    I am new to this website and this is my first post. So if I’m in the wrong place with this topic, I apologize.

    I’m just wondering if any one has seen this article?

    I still have at least 5 years until I retire, maybe as many as 10 depending on a variety of factors. But besides allocations, I’m looking at my options for my TSP upon retiring.

    I’m also interested in everyone’s thoughts on other TSP withdrawal strategies.


    Welcome, You can post anywhere or start a new thread if you wish.

    I had not seen the article before but it seems a little complicated. I don’t agree with putting everything in TSP into the G Fund upon retirement as you still want it to continue to grow. I’m not sure why I would try to recreate something in an IRA that is similar to TSP and hold cash within a brokerage account that earns less than a bank savings account. The only reason I would roll over part of my TSP to an IRA would be to invest in something that is not available within TSP. It sound like the article was written by someone who wants you to take your money out for them to manage it for you. Some people think that the withdrawal options in TSP are restrictive and everything is done proportionally. My options are further constrained because of my age and early retirement but I believe they are manageable within TSP when I decide to start taking withdrawals.

    Some of his ideas of converting IRA to Roth outside of TSP makes sense, but I would suggest that you contribute to Roth outside of TSP while you are still working, if you are able to do so. An outside Roth can also be used as a secondary emergency fund since you have already paid taxes on it you can withdraw contributions at any time but you are not required to take distributions and tax free earnings transfer to your beneficiaries.

    Currently TSP annuity options don’t make sense to me due to low interest rates, but it is an option that may improve by the time you retire. I think you could do better by managing your TSP account yourself.

    Suggest you read TSPaul’s articles on business cycle method of investment, if you have not done so already. In retirement, you may want to be a little more conservative depending on your risk tolerance. Good luck on building your TSP in the mean time.


    Thank you for sharing those thoughts.

    I seem to be a little technically challenged here as a newbie. Where and how can I start a new thread?


    From the main message board page, if you scroll down all the way to the bottom (a long way down) there is a form similar to what you posted on here. Create New Topic in “Message Board”, fill in topic title field and post away. New post are always listed at the top of the message board.

    Message Board


    Got it!!! Many thanks.

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