Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
First off I have advocated remaining in TSP as the fees associated with the funds are among the lowest in the industry. Yes the restrictions can be harsh and hard to work around. However there are new proposals offered to the Senate by TSP. When it was first introduced it was thought to be best used as an annuity or pension type income. Over the past few years as 401k's became the means for retirement income new concepts have come out and these are being proposed by the management team.
Quote:
The bill would let*investors take multiple withdrawals after age 59 ½ while still employed and also multiple withdrawals after leaving. It also would create new options for taking regular payouts, including allowing investors to choose quarterly or annual payments; change payments at any time; stop them while leaving the remaining money in the account; or choose an annuity or lump-sum even after taking out regular payments.
The bill does not address another complaint frequently voiced by TSP investors, the limited investment options. The TSP offers five core funds, all index-based, which track the U.S. and international stock markets, the bond market and government securities. It also offers five “lifecycle” funds that mix investments in the five basic funds in ratios that vary depending on a projected date to begin withdrawals.
The TSP has had authority for years to create a “window” through which participants could invest some of their money in mutual funds available in the open market. The program’s governing board committed in 2015 to using that authority but Weaver said that*outside investing is not expected to be available until 2020.
As it stands once you retire and decide to take your money you can opt to make an annuity, take it all out, take a one time pay out of all or part, or allocate all or part of the fund to come to you in a series of payments that can be adjusted only once per year. I chose the last option and took the entire amount and created payments that will last longer than 10 years and I have adjusted it up once so far. Not everyone has the options to do as we have done but many people lack enough options under the current rules to do themselves right by the funds they have saved.
I think this is a good proposal as it is hard to gage if you need more or less money next year. Sometimes you just guess. My plan is to increase it next year because we plan on more trips so our spending will go up.
First off I have advocated remaining in TSP as the fees associated with the funds are among the lowest in the industry. Yes the restrictions can be harsh and hard to work around. However there are new proposals offered to the Senate by TSP. When it was first introduced it was thought to be best used as an annuity or pension type income. Over the past few years as 401k's became the means for retirement income new concepts have come out and these are being proposed by the management team.
As it stands once you retire and decide to take your money you can opt to make an annuity, take it all out, take a one time pay out of all or part, or allocate all or part of the fund to come to you in a series of payments that can be adjusted only once per year. I chose the last option and took the entire amount and created payments that will last longer than 10 years and I have adjusted it up once so far. Not everyone has the options to do as we have done but many people lack enough options under the current rules to do themselves right by the funds they have saved.
I think this is a good proposal as it is hard to gage if you need more or less money next year. Sometimes you just guess. My plan is to increase it next year because we plan on more trips so our spending will go up.
have you found anything that touches on possible fee increases if these changes are implemented?
Their should be one sent of rules for the amount you can contribute to a retirement plan and all plans should have the same options for taking money out. The current system discriminates based on your employer and occupation and that is not fair.
have you found anything that touches on possible fee increases if these changes are implemented?
It could be possible that there is a raise in the fees. They based the fee structure on withdrawals on a single annual change. I guess it is possible they might make it on each transaction but I do not think they have that in the plan. BlackRock Institutional Trust Company, N.A. (BlackRock) has been handling TSP for years and in my honest and humble opinion has done well by their investors. I have been in TSP since 1988 and TSP began it in 1986. People my age are now beginning to take retirement benefits from TSP.
It could be possible that there is a raise in the fees. They based the fee structure on withdrawals on a single annual change. I guess it is possible they might make it on each transaction but I do not think they have that in the plan. BlackRock Institutional Trust Company, N.A. (BlackRock) has been handling TSP for years and in my honest and humble opinion has done well by their investors. I have been in TSP since 1988 and TSP began it in 1986. People my age are now beginning to take retirement benefits from TSP.
thanks. i've been in TSP from around the same time and agree with your assessment of their performance.
I figured eventually I would leave the TSP because of their one lifetime lump sum withdrawal rule so this is good news, because overall I'd prefer to stay. I wouldn't even mind if they charged a small fixed administrative fee for the withdrawals.
It would also be good if we had more fund options, but that's not enough to make me want to leave. Even at that simple level -- G, F, C, S, and I funds -- it can be challenging enough for me to make allocation decisions sometimes.
Their should be one sent of rules for the amount you can contribute to a retirement plan and all plans should have the same options for taking money out. The current system discriminates based on your employer and occupation and that is not fair.
To clarify the money you need in retirement does not depend on the employer your work for (has or does not have 401k, 403b etc.), the percent of pay fellow employees put into the plan (you can be limited to a very low percent of your salary if you earn a good salary and fellow employees put very little of their salary in the plan, etc etc. Should be one set of saving rules that let all employees receive the same tax benefits on their savings and allows all to put into the plan the same amount of money if they chose.
I figured eventually I would leave the TSP because of their one lifetime lump sum withdrawal rule so this is good news, because overall I'd prefer to stay. I wouldn't even mind if they charged a small fixed administrative fee for the withdrawals.
It would also be good if we had more fund options, but that's not enough to make me want to leave. Even at that simple level -- G, F, C, S, and I funds -- it can be challenging enough for me to make allocation decisions sometimes.
It was trying to keep up the re-balancing that sent me looking at the L Income fund. It re-balances daily. In the last 12 months the L Income fund has given me a respectable 5.5%. I could do better but I like that safety it provides and the growth and gains so far.
It will be a year or so before the changes take effect. This is great news for TSP account holders.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
TSP Rules Update
