Vanguard fees nearing TSP

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board Vanguard fees nearing TSP

This topic contains 4 replies, has 2 voices, and was last updated by  TS Paul 2 years, 3 months ago.

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  • #23641

    Mike

    Vanguards fees are nearing TSP, e.g. VTI .04, TSP .038. This makes it interesting for moving your stock based money out, and leaving G fund portion in TSP when retiring. You can also re-populate that G fund bucket as needed as long as you keep some money in it ($200 I think). Thoughts?

    #23643

    TS Paul
    Keymaster

    The drop in fees for Vanguard and its competitors has been fantastic and makes it much more palatable to pull your money out of the TSP when you retire. Hopefully the TSP’s proposed changes to withdrawal options will be approved and that won’t be necessary any more soon.

    I am not familiar with a mechanism for putting more money into the TSP after you retire. I’m not retired or even close yet, so I put very little thought into that aspect. Hopefully someone else will be along with a better answer shortly.

    The TSP Allocation Guide www.TSPallocation.com

    #23655

    Mike

    Thx. It’s in the “Withdrawing your TSP account after leaving federal service” pg 3, for any interested parties.

    https://www.tsp.gov/PDF/formspubs/tspbk02.pdf

    I’ve been considering a bucket approach using the G fund for distributions, so I have more options in my portfolio. The Level3 investing by AAII is a very interesting approach.

    #23661

    Charles

    This article talks a little about moving money back into TSP. It also has what I consider a very interesting withdrawal strategy.

    http://www.nitpinc.com/August-2015-newsletter.php

    #23743

    TS Paul
    Keymaster

    They say you learn something new every day, this was it for me today. From the article Charles linked to:

    The TSP has a little-known rule that will be your friend in retirement years. As long as a TSP account has $200 or more in the account, you may transfer money back into the TSP. Remember your traditional IRA? As the balances in your G Fund at the TSP get lower, consider transferring some of your IRA funds back into the TSP. This will replenish the pool of money you are using for income. Statistically speaking, real growth will have occurred in your IRA funds and you will be able to transfer some of that growth back into your income stream. Remember: this can continue as long as you maintain at least $200 in the TSP account and you still have traditional IRA balances. Roth balances are NOT allowed to be transferred to the TSP at this time.

    The TSP Allocation Guide www.TSPallocation.com

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