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TSP has a couple of glitches in it that make it less convenient to withdraw from upon retirement but............. if the idea follows the same idea it is good concept.
Many people will scoff and say its socialism, the government whatever. That is their option, but I would have welcomed a better 401k plan than I had at either employer.
My present employers 401k, prior to their closing it down, had a very high cost basis. Virtually all their employer match/contributions were sucked up by expenses in crappy funds and administrative costs associated with it being such a small group.
Golfingdou-- as you now I like the myRA and TSP
I have about equal funds in a Morgan Stanley account and TSP. I am totally sick of Morgan Stanley and am thinking about moving most of it to TSP. And I retire this year.
For what it is worth there are major differences with myra. First myra has a set maximum amount that can be in the account, Two myra has only one option.
You have heard a few here talk about the TSP. I have been in TSP almost from inception way back in the day. It has done many people well not going guns to the wall but giving a steady growth over the years. It has a low maintenance fee and because of that investors keep more of their investment.
So far I am quite astonished at some of the comments here about it. HappyTexan I am surprised that you are so cynical about it. The proposal does not mean they will get their hands on it. Even if they do and they are the ones that have been working TSP I can't say that they have done badly.
freemkt I would think that low income wage earners would be glad to get the chance to put at least a little something. Still I didn't see anything in the proposal that would mandate the contribution. All I saw was that they are proposing an agency fashioned after the TSP or even the TSP folks themselves running the program. Knowing that they could take or rather carry that fund over to another employer should be very attractive to a great many people. As I said earlier in this post MYRA is limited in investments and in the amount that can be in the account.
Truthfully I can see the reason for hesitation. I also understand the thoughts that here we go again making another agency that might end up costing us more. Well instead of just saying it is a good idea with a flaw. It would be better to work with the idea and repair the flaws.
The way I read it, employers would be required to automatically enroll new employees and place 3% of wages into the employee's retirement account, with the employee being able to opt out.
I don't want to opt in and don't want to have to opt out.
If you can't afford to save, you shouldn't be forced to do so, and low-wage employers should not be dangling that useless carrot in front of their workers.
I suggest people take this proposal with a tsp of salt.
....after it gains some power it will start thinking it needs to make our decisions for us, and the push to force everyones IRA/401Ks into it will commence.
I think it's a great idea to expand some gov't employee benefits into the private sector as well, as long as participation is voluntary. There are too many people today being paid low wages who need that money, and another mandatory deduction (along with SS) would create real hardship.
But for those who would like to participate, this would be a great opportunity.
I noted the reference to the G fund. If ever IRAs and 401Ks were to be taken over by the gov't (a future possibility), this is where the money would go: gov't bonds. The gov't needs to sell its bonds, and the TSP and other retirement vehicles are the "buyer of last resort". And yes, it can happen.
The way I read it, employers would be required to automatically enroll new employees and place 3% of wages into the employee's retirement account, with the employee being able to opt out.
I don't want to opt in and don't want to have to opt out.
If you can't afford to save, you shouldn't be forced to do so, and low-wage employers should not be dangling that useless carrot in front of their workers.
I suggest people take this proposal with a tsp of salt.
Awesome idea. But while you're "not opting in", make sure and sign that paper that says when you get old, you get no extra income. NONE.
I think the program should be voluntary, I don't want government to force me into anything. We already have one such program. There is no need for two forced programs.
I find it quite interesting that the financial backers of this plan are mostly unions which have retirement plans.
Makes you wonder why these groups are pushing for a national plan.
Because there have been numerous examples of companies using bankruptcy law to stop paying promised pension benefits. A national pension system that covers all workers would not only protect workers from that kinds of theft but also enable workers to change jobs with fewer repercussions.
Because there have been numerous examples of companies using bankruptcy law to stop paying promised pension benefits. A national pension system that covers all workers would not only protect workers from that kinds of theft but also enable workers to change jobs with fewer repercussions.
So unions are pushing to have a national retirement fund instead of their own pension system ?
I find it quite interesting that the financial backers of this plan are mostly unions which have retirement plans.
Makes you wonder why these groups are pushing for a national plan.
So is it fair to say that the income stream it gets converted to is independent of personal market returns and that upon death either before or after retirement your contributions go where?
So is it fair to say that the income stream it gets converted to is independent of overdo all market returns and that upon death either before or after retirement your contributions go where?
Well we already know that from previous articles on these plans..1/2 goes to the government
Get rid of the 401K and everyone get on the Federal gravy train.
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