What new TSP fund options do you support?

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POLL: Federal TSP Participants: What new fund options do you support?

Poll ended at Mon Nov 19, 2012 6:50 pm

None
14
28%
TIPS
9
18%
International Bond
5
10%
Gold
2
4%
Emerging Stocks
17
34%
Many Outside Mutual Funds if expenses do not exceed 0.2%
2
4%
Many Outside Mutual Funds if expenses do not exceed 0.5%
0
No votes
Any Outside Mutual Funds without expense limits
1
2%
 
Total votes : 50

What new TSP fund options do you support?

Postby louis c » Fri Nov 09, 2012 6:50 pm

Please vote only if you are in the Federal Thrift Savings Plan (TSP). You may select more than one option. Other than the choice of outside mutual funds, assume the expense ratios are the same or close to the same as existing TSP funds. The expense selections are of course arbitrary, but the idea is just to generally gauge how much people will tolerate. I suspect that will be very little here! Note: international bond is hedged.
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Re: What new TSP fund options do you support?

Postby gkaplan » Fri Nov 09, 2012 7:44 pm

Several years ago, TSP participants were clamoring for a REIT fund, so it's interesting that this is not one of the poll options. (I voted for TIPS).
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Re: What new TSP fund options do you support?

Postby Groundhog » Fri Nov 09, 2012 7:46 pm

I voted none but would like to see the index changed for the I (international) fund to a more total international index like TISM.
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Re: What new TSP fund options do you support?

Postby stan1 » Fri Nov 09, 2012 7:53 pm

Sometimes "good enough" is "good enough" -- so no changes needed.
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Re: What new TSP fund options do you support?

Postby dharrythomas » Fri Nov 09, 2012 8:04 pm

I'd go the other way and get rid of C and S and subsitute a TSM fund. I would like to modify the I fund to be more total international.
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Re: What new TSP fund options do you support?

Postby retiredjg » Fri Nov 09, 2012 8:12 pm

A couple of things (like REIT) would be a nice extra, but the only thing the TSP actually needs is a grown up international fund.
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Re: What new TSP fund options do you support?

Postby SpaceCommander » Fri Nov 09, 2012 8:24 pm

A REIT fund would be nice. Concur with the comments about a TSM option and international index.
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Re: What new TSP fund options do you support?

Postby EmergDoc » Fri Nov 09, 2012 8:27 pm

I agree with the real TSM and the real TISM. TIPS would be nice. A true small cap fund would be nice. Since I'm not contributing any more it won't be long before all I'm using in the TSP is the G fund.
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Re: What new TSP fund options do you support?

Postby alisa4804 » Fri Nov 09, 2012 8:34 pm

I vote NONE - leave the TSP as is. Sadly many of the federal employees I work with have little understanding of mutual funds or their TSP choices, so the fewer choices for them to flounder with, the better. Recently the TSP started enrolling new employees automatically in an age-appropriate Target date fund (L funds) rather than the G fund, which I think is a good move. TSP has a small range of diverse funds, not comprehensive, but index funds, and they are dirt cheap. Even Allan Roth said he wants to be a fed so he can invest in TSP - he mentioned this at Bogleheads 11!

I suspect it is the mutual fund industry who want to get their fingers in the TSP pie and offer REITs and other options, but we can get those separately in our Roth IRAs, at leas those of us who understand asset diversification and what REITs are :wink:
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Re: What new TSP fund options do you support?

Postby Sbashore » Sun Nov 11, 2012 11:39 am

I voted TIPS but it was a tough choice between that and "none". All the other choices seemed out of character for the TSP and I'm basically happy with how it is now.
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Re: What new TSP fund options do you support?

Postby backofbeyond » Sun Nov 11, 2012 1:58 pm

Like others, I'd prefer an expansion of the I fund to be more inclusive of emerging markets and Canada.

However, the only real change I think is needed is the computer system needs to be brought into this century so that the user has the ability to select amounts of fund additions/withdrawls from the applicable balances. Whether that be deciding to take a withdrawl from the traditional side vs the Roth side, and/or deciding to take out $2000 this month instead of $1200 (during the withdrawl phase).

All things considered, I have no complaints. One of the few things the Gov't did exactly right.
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Re: What new TSP fund options do you support?

Postby Joe S. » Sun Nov 11, 2012 6:36 pm

I didn't vote because I am not working for the Federal government. I would like to decrease the options by merging the C and S funds. I don't see any reason to have separate large and small stock funds, it only confuses the participants, who might end up putting to much into small stocks. Combine them into a single TSM fund. A TIPS fund might be a consideration for an addition.
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Re: What new TSP fund options do you support?

Postby JTcheek » Sun Nov 11, 2012 7:20 pm

gkaplan wrote:Several years ago, TSP participants were clamoring for a REIT fund, so it's interesting that this is not one of the poll options. (I voted for TIPS).


Alas, I'm still clamoring for a REIT fund, but it wasn't one of the options listed in the poll.
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Re: What new TSP fund options do you support?

Postby baw703916 » Sun Nov 11, 2012 7:37 pm

I personally like having the C and S funds. It lets me do a little tilting in my TSP account. If you don't want to tilt, it's not that hard to allocate them in a 4:1 ratio.

The L funds' allocation between C and S actually varies with time: it starts out with a ratio of about 2.3:1, and then increases, reaching 4:1 for the L income fund. So that would change the L funds slightly.
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Re: What new TSP fund options do you support?

Postby Spades » Mon Nov 12, 2012 8:37 am

Agreed, we need a REIT fund in there.

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Re: What new TSP fund options do you support?

Postby stan1 » Mon Nov 12, 2012 1:11 pm

Best not to let K Street lobbyists and their financial backers tinker with the TSP. The Federal Thrift Savings Board has done an outstanding job fending off special interests since the TSP's inception.

If a Real Estate fund was added, why not a financial services, engery, technology, gold, communications, food processing or a retail fund? Why would one industry be singled out?

I understand why Bogleheads feel real estate is "different", but adding that industry sector without adding others is politically impossible. Best to leave it alone.

Likewise adding small cap value would mean also adding large cap growth, large cap value, and small cap growth (at a minimum). Again, best to leave it alone.
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Re: What new TSP fund options do you support?

Postby Ketawa » Mon Nov 12, 2012 1:31 pm

I voted for emerging market stocks. But ideally I would love to see the I Fund expanded to include Canada, emerging markets, and small cap stocks.

The US is 46.3% of the world market and MSCI EAFE is 36.2% according to FTSE indexes. (I have the FTSE numbers readily available and don't feel like seeking out the MSCI numbers). The TSP is missing at least 17.5% of the world market. If you count small cap stocks in MSCI EAFE countries, it's probably close to 20%. This should be corrected.
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Re: What new TSP fund options do you support?

Postby stan1 » Mon Nov 12, 2012 1:55 pm

Another political unlikelihood: investing military service members and government employees retirement money in Chinese and Russian companies.

The election year TV commercials would be so easy: "Under (President, Senator, Congressman) Jones watch the US government invested tens of millions of dollars saved by our patriotic military men and women in Chinese companies (pan to an image of the Chinese aircraft carrier, fighter squadrons, and masses of Chinese army troops marching in formation). Is this the America we want? Hold Washington accountable to the people."

Not gonna happen. We have a good thing as it is. Let it be.
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Re: What new TSP fund options do you support?

Postby retiredjg » Mon Nov 12, 2012 2:10 pm

stan1 wrote:I understand why Bogleheads feel real estate is "different", but adding that industry sector without adding others is politically impossible. Best to leave it alone.

You are probably right. :wink:
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Re: What new TSP fund options do you support?

Postby baw703916 » Mon Nov 12, 2012 10:06 pm

stan1 wrote:Another political unlikelihood: investing military service members and government employees retirement money in Chinese and Russian companies.

The election year TV commercials would be so easy: "Under (President, Senator, Congressman) Jones watch the US government invested tens of millions of dollars saved by our patriotic military men and women in Chinese companies (pan to an image of the Chinese aircraft carrier, fighter squadrons, and masses of Chinese army troops marching in formation). Is this the America we want? Hold Washington accountable to the people."

Not gonna happen. We have a good thing as it is. Let it be.


Except that Hong Kong is now part of China, and is included in the EAFE. So the retirement funds of government employees have already been invested in Chinese companies for almost 10 years.
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Re: What new TSP fund options do you support?

Postby Spades » Tue Nov 13, 2012 9:25 pm

stan1 wrote:Another political unlikelihood: investing military service members and government employees retirement money in Chinese and Russian companies.

The election year TV commercials would be so easy: "Under (President, Senator, Congressman) Jones watch the US government invested tens of millions of dollars saved by our patriotic military men and women in Chinese companies (pan to an image of the Chinese aircraft carrier, fighter squadrons, and masses of Chinese army troops marching in formation). Is this the America we want? Hold Washington accountable to the people."

Not gonna happen. We have a good thing as it is. Let it be.


I'd like to think so, but I'm certain if the right politician got in control of it and he got motivated somehow then it would happen. I didn't think about the political aspect.... I always forget about politics.... sigh.....

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Re: What new TSP fund options do you support?

Postby ndchamp » Tue Nov 13, 2012 9:43 pm

I also voted none.
As a retired Fed, I would also like to see more than the "sweetheart" deal with Met Life for lifetime income. :moneybag
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