The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: simonsez on June 04, 2013, 09:16:17 AM
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http://www.youtube.com/tsp4gov
The presentation is called 'What Do You Pay to Save?'. As soon as another new video comes out, the link will no longer connect directly but should still be searchable.
It perhaps unfair to compare the average of all funds to the average TSP fund (no variance in TSP funds' expense ratios, all TSP funds had 2.7 basis points in 2012). For comparison to Vanguard, the unweighted average of the 122 Vanguard funds is 24.02 basis points.
https://personal.vanguard.com/us/FundsByName
The following are the Vanguard funds with 10 basis points or less:
VFIAX 5
VTSAX 5
VUSXX 10
VBIAX 10
VDMAX 10
VIGAX 10
VBILX 10
VLCAX 10
VMGMX 10
VIMAX 10
VMVAX 10
VGSLX 10
VBIRX 10
VTAPX 10
VSGAX 10
VSMAX 10
VSIAX 10
VTMGX 10
VBTLX 10
VVIAX 10
I'm not really trying to prove a point or lambast non-fed plans, just putting it out there for general info.
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Yes, TSP is a great deal for those who are eligible.
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... all TSP funds had 2.7 basis points in 2012.
I think Vanguard would love to have the fund sizes enjoyed by the TSP's index funds.
And Vanguard may even be jealous of this:
"**** Expenses are offset by the forfeitures of Agency Automatic (1%) contributions of FERS employees who leave Federal Service before they are vested, other forfeitures, and loan fees."
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The overall, weighted average of the Vanguard funds is probably much lower than 24bp when you consider fund sizes - total stock market, total bond market, and 500 index alone are like 20% of Vanguard's assets under management. TSP is wicked cheap, though. Even Bogleheads is in love with it (http://www.bogleheads.org/wiki/Thrift_Savings_Plan). I wish big employers offered something similar.