Quote:
Originally Posted by disneysteve
I don't know the first thing about TSP's. Do they have all the same rules as 401k's regarding contribution limits and withdrawal rules and loans and such?
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Contribution limits are the same, and withdrawal rules and loans are pretty similar to 401k's (though I'm not sure about the specifics)
Quote:
Originally Posted by creditcardfree
Personally, I think the TSP is overly simplified. Only 5 funds to choose from!!Of course, for the average person the simplier the better.
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Personally, I
love the simplicity. I'm a big fan of index funds, and the TSP has everything I need for (IMO) an adequately balanced portfolio:
- U.S. Treasuries
- Corporate Bonds index (based on the Barclays U.S. Aggregate Index)
- Large-cap stock index (S&P 500)
- Small-cap stock index (Wilshire 4500)
- International stock index (Morgan Stanley Europe, Australasia, Far East (EAFE) Index)
But again, that's just my own opinion, because I like simplicity in my finances...
Part of the reason they're able to keep the expenses so low is that there
are so few choices. More people's money in just a few pots, and less overhead. Also, fund-to-fund transfers are limited to something like 5/month to prevent excessive transaction costs. The TSP is great for "leave it and forget it" investing, but nothing much more complex than that.