USAA Equivalents to Thrift Savings Plan

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board USAA Equivalents to Thrift Savings Plan

This topic contains 3 replies, has 3 voices, and was last updated by  Brian 4 years, 1 month ago.

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  • #16317

    jarush
    Participant

    I have a modest 15k saved in savings account for an emergency/rainy day. My problem is the dismal interest rate wants to make me rip my hair out.

    So instead of that money just making a measly $2 a month in interest, I’m considering opening up an account with USAA (who I bank with) and put that money into something worth having.

    This is the beginnings of my emergency fund (shooting for 6 months of complete living expenses) and I want to be able to get to it and withdraw money should an emergency arise but leave it alone in the interim.

    There used to be a post about this but I cannot find it. If anyone can suggest the type of account to open up and put this money to good use while I’m not needing it and mirror what I put into my TSP, I would greatly appreciate it.

    Thanks for reading,
    Jim

    #16331

    TS Paul
    Keymaster

    You can certainly use a USAA brokerage account or buy USAA mutual funds to replicate what you are doing in your Thrift Savings Plan if you want to stay with USAA for convenience.

    If you were going to do mutual funds:

    USSPX tracks the same index as the TSP

    USMIX tracks the same index as the TSP S Fund.

    USIFX appears to be a relatively close match to the TSP I Fund.

    To match the TSP F Fund, you would probably have to buy a combination of USGNX and perhaps USFIX.

    If you open a USAA brokerage account, you can buy any ETFs you like, including those listed on the TSP Fund Equivalents page: http://www.tspallocation.com/mutual-fund-etf-equivalents-tsp-funds/

    If your goal is to buy Vanguard ETFs (which would be my preferred investment vehicle in most cases), you could save on commissions by opening a Vanguard account rather than a USAA account.

    Good luck out there.

    The TSP Allocation Guide www.TSPallocation.com

    #16332

    jarush
    Participant

    I’m curious why your preferred investment vehicle wold be Vanguard? What is the difference between them and USAA?

    I was thinking of sticking with USAA for convenience but not if I would be losing money.

    #16335

    Brian

    Paul that was some great advice. Recently I was talking to a fellow coworker, he was telling me he switched from USAA to Vanguard funds because of the expense ratios from USAA fudns were crap (which I thought were great are actually really not at all). Yes I could buy Vanguard through USAA but they charge a hefty premium per order, my last one was $50. After reading up on your recommended vanguard equivalent to the TSP funds like NAESX with an e/r @.24% compared to USAA TSP S fund comparable USMIX e/r @.50%. This is hands down evidence for me to dump USAA and switch, opening up a vanguard account today.

    Keep the advice coming!

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