Author Topic: tsp-former govt. worker  (Read 4085 times)

DBV1985

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tsp-former govt. worker
« on: April 30, 2016, 09:13:43 AM »
Hi all,

I have about $1200 in my TSP that has been sitting there for years.  Personal rate of return is 2% in the last year. I am 30 years old and not sure if I should roll it into Vanguard for a higher growth potential. Advice please??

Thanks,
J

tiger002

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Re: tsp-former govt. worker
« Reply #1 on: April 30, 2016, 09:47:33 AM »
Due to the low expense ratios, the TSP may be a good place to keep that money. Which funds do you have it invested in? The 2% makes it sound like the G fund which is the government security fund. The C, S, and I fund are stocks funds, so you'd probably want to be mostly in these at your age.

JZinCO

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Re: tsp-former govt. worker
« Reply #2 on: April 30, 2016, 09:54:05 AM »
What's mo betta than G, C, I and S?
If I could, I would roll everything into a TSP.

wenchsenior

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Re: tsp-former govt. worker
« Reply #3 on: April 30, 2016, 11:29:09 AM »
There is nowhere you can invest that has lower overhead fees than TSP, so unless you have complicated investment plans for that money or expect to need it, I would probably just put it your desired allocation mix and leave it alone.

Sailor Sam

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Re: tsp-former govt. worker
« Reply #4 on: April 30, 2016, 11:33:23 AM »
There is nowhere you can invest that has lower overhead fees than TSP, so unless you have complicated investment plans for that money or expect to need it, I would probably just put it your desired allocation mix and leave it alone.

+1

Cycling Stache

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Re: tsp-former govt. worker
« Reply #5 on: April 30, 2016, 12:32:09 PM »
Yep, if you got 2% return, you're almost certainly in the G fund.  Just transfer all from G fund to C fund (S&P 500 index fund) and then forget about it for the next 30 years.  You should have $10k at that point assuming historic growth rates.  Not a massive sum, but better than what you've got today.

And yes, you should keep it there.  Lowest expense ratio anywhere.

sol

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Re: tsp-former govt. worker
« Reply #6 on: April 30, 2016, 12:46:19 PM »
As an added bonus, I'm pretty sure that all former federal workers who still have an active TSP account can continue to transfer funds into it, which means you could theoretically move your 401k funds from whatever your current plan is into your traditional (non-Roth) TSP account. 

DBV1985

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Re: tsp-former govt. worker
« Reply #7 on: May 01, 2016, 09:47:19 PM »
Okay I have transferred it all to the C fund. I have a 403b ROTH with Lincoln Financial and a 401K traditional with American FUnds. Also looking to open up an IRA for the first time. I guess I'll have to research if it makes sense to move all of those into TSP. What are you recommendations? Thanks!

J

Sailor Sam

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Re: tsp-former govt. worker
« Reply #8 on: May 01, 2016, 10:17:57 PM »
Okay I have transferred it all to the C fund. I have a 403b ROTH with Lincoln Financial and a 401K traditional with American FUnds. Also looking to open up an IRA for the first time. I guess I'll have to research if it makes sense to move all of those into TSP. What are you recommendations? Thanks!

J

Recommendations for IRA is to go with Vanguard. Start with VTSMX, and once you get 10k, switch over to VTSAX.

If you're asking about transferring your 403b and 401k into TSP, then I advise checking the expense ratios. If American Fund and Lincoln Financial are charging more than the TSP expense ratio, then roll them into the TSP. Check the rules first, of course.

Cycling Stache

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Re: tsp-former govt. worker
« Reply #9 on: May 02, 2016, 10:55:24 AM »
Okay I have transferred it all to the C fund. I have a 403b ROTH with Lincoln Financial and a 401K traditional with American FUnds. Also looking to open up an IRA for the first time. I guess I'll have to research if it makes sense to move all of those into TSP. What are you recommendations? Thanks!

J

Recommendations for IRA is to go with Vanguard. Start with VTSMX, and once you get 10k, switch over to VTSAX.

If you're asking about transferring your 403b and 401k into TSP, then I advise checking the expense ratios. If American Fund and Lincoln Financial are charging more than the TSP expense ratio, then roll them into the TSP. Check the rules first, of course.

Yes, contact TSP to see if you can roll those over into your TSP account if not still working there (roth and traditional might be different rules, certainly different pots).  When it comes to expense ratios, there really is nothing lower.  I think the C fund is 0.028% expense ratio, which is even better than the 0.05% for Vanguard's Admiral Fund.  But if not TSP, then Vanguard.