Hating the TSP -- opinions on how to invest?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just passed 750k. hoping to pass 1 mil next 3-4 years.

How many years in? I'm at 14 years and have $375k.

NP. I'm 15 years and $450,000. Too conservative early on.

375k here. I wasn't conservative but started at a gs-9. Took a while before I could max out.

750k poster here. I am at 27 years but, like some of you, made mistakes early on - didn't start right away (waited until year 4, I think) and even when I got going, i didn't max out. Max out, be patient is my recommendation to young feds.

[Anonymous]

I wish I were in the TSP! I have choices, but my husband is a federal employee. Guess which one of us is doing WAY better? He has 26 years in and is above 800K. The fees in TSP are low, low, low.

[Anonymous]

Having all of those choices in non-TSP retirement plans is very costly (and that cost is passed on to you). The TSP has limited choices, but that helps to maintain incredibly low operating expenses.

[Anonymous]

12 years with $290k. Maxed out from the start. Am I being too conservative? It seems low compared to what PPs have posted. I have a mix of G, C, and I funds. No L funds.

[Anonymous]

Anonymous wrote:12 years with $290k. Maxed out from the start. Am I being too conservative? It seems low compared to what PPs have posted. I have a mix of G, C, and I funds. No L funds.

I would pull out of G. Either CSI or L fund. You still have a long way to go before retiring. I can't recall do they have L2040?

[Anonymous]

Anonymous wrote:

Anonymous wrote:12 years with $290k. Maxed out from the start. Am I being too conservative? It seems low compared to what PPs have posted. I have a mix of G, C, and I funds. No L funds.

I would pull out of G. Either CSI or L fund. You still have a long way to go before retiring. I can't recall do they have L2040?

+1. G is awful. It shouldn't even be an option unless you're retiring tomorrow. Take the money and put it in the right lifecycle!!

[Anonymous]

Get into private equity investments. That's where money is made.

[Anonymous]

The fund that tracks the S&P consistently returns less than the S&P - so yeah - the fund choices suck. I think many/most fed govt workers don't understand it - they're just thrilled at the amount they have after maxing out for 30 yrs. Put in the bare minimum to get the match, and then go to a Vanguard or Fidelity IRA - their funds actually manage to beat the market yr after yr, so the cost is worth it.

[Anonymous]

Anonymous wrote:The fund that tracks the S&P consistently returns less than the S&P - so yeah - the fund choices suck. I think many/most fed govt workers don't understand it - they're just thrilled at the amount they have after maxing out for 30 yrs. Put in the bare minimum to get the match, and then go to a Vanguard or Fidelity IRA - their funds actually manage to beat the market yr after yr, so the cost is worth it.

could you recommend some funds? thx

[Anonymous]

Anonymous wrote:The fund that tracks the S&P consistently returns less than the S&P - so yeah - the fund choices suck. I think many/most fed govt workers don't understand it - they're just thrilled at the amount they have after maxing out for 30 yrs. Put in the bare minimum to get the match, and then go to a Vanguard or Fidelity IRA - their funds actually manage to beat the market yr after yr, so the cost is worth it.

No don't do this. TSP is pre-tax, and Vanguard/Fidelity is after tax and you will be taxed again on your earnings when you cash out.

[Anonymous]

Anonymous wrote:New federal employee and I am thinking the TSP is a joke and treats gov't employees like a bunch of idiots who can't make financial decisions and thus have to be limited to 5 funds. I'm in my early 30s and with my prior retirement plans -- which always had 15-30 options -- I had a growth allocation. What % combo of funds can get me to something like that with the TSP? I don't want to put everything into the fund that resembles S&P -- bc the S&P hasn't done so great YTD; yet I have no idea what the "smaller companies" funds represents and am not sure what combo of that + S&P will get me some kind of growth allocation.

Dear New Federal Employee,

You may want to actually meet with a financial advisor. I am over million dollars with my TSP fund and have other investments as well. Your statement "I have no idea" and yet you are bashing the fund. Maybe do a little research before posting on DCUM and you can find out about the funds. Or better yet, don't invest - who cares.

Signed,

"Old Federal Employee"

[Anonymous]

Anonymous wrote:The fund that tracks the S&P consistently returns less than the S&P - so yeah - the fund choices suck. I think many/most fed govt workers don't understand it - they're just thrilled at the amount they have after maxing out for 30 yrs. Put in the bare minimum to get the match, and then go to a Vanguard or Fidelity IRA - their funds actually manage to beat the market yr after yr, so the cost is worth it.

This is a really bad advice.

[Anonymous]

Anonymous wrote:

Anonymous wrote:New federal employee and I am thinking the TSP is a joke and treats gov't employees like a bunch of idiots who can't make financial decisions and thus have to be limited to 5 funds. I'm in my early 30s and with my prior retirement plans -- which always had 15-30 options -- I had a growth allocation. What % combo of funds can get me to something like that with the TSP? I don't want to put everything into the fund that resembles S&P -- bc the S&P hasn't done so great YTD; yet I have no idea what the "smaller companies" funds represents and am not sure what combo of that + S&P will get me some kind of growth allocation.

Dear New Federal Employee,

You may want to actually meet with a financial advisor. I am over million dollars with my TSP fund and have other investments as well. Your statement "I have no idea" and yet you are bashing the fund. Maybe do a little research before posting on DCUM and you can find out about the funds. Or better yet, don't invest - who cares.

Signed,

"Old Federal Employee"

If you don't care - why post?? Fed employees are a cult - god forbid you bash any aspect of their job or comp, they must ALL come out and attack.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:New federal employee and I am thinking the TSP is a joke and treats gov't employees like a bunch of idiots who can't make financial decisions and thus have to be limited to 5 funds. I'm in my early 30s and with my prior retirement plans -- which always had 15-30 options -- I had a growth allocation. What % combo of funds can get me to something like that with the TSP? I don't want to put everything into the fund that resembles S&P -- bc the S&P hasn't done so great YTD; yet I have no idea what the "smaller companies" funds represents and am not sure what combo of that + S&P will get me some kind of growth allocation.

Dear New Federal Employee,

You may want to actually meet with a financial advisor. I am over million dollars with my TSP fund and have other investments as well. Your statement "I have no idea" and yet you are bashing the fund. Maybe do a little research before posting on DCUM and you can find out about the funds. Or better yet, don't invest - who cares.

Signed,

"Old Federal Employee"

If you don't care - why post?? Fed employees are a cult - god forbid you bash any aspect of their job or comp, they must ALL come out and attack.

A cult? That's something new. How is that related to TSP/investment discussion anyway?

[Anonymous]

OP: if you think you can do better than TSP no one forces you to use it. Just contribute 5% to take advantage of the matching then do your own investing outside TSP.