TSP: Love it or leave it?

When they leave federal service —  either to retire or for another job — about half of all thrift savings plan account holders stick with the federal 401K plan. The other half may move it to an outside IRA or other investment option.

So who is right, and what is your plan?

The TSP has some of the lowest fees in the business. Over time that can add a lot of money to your pocket as opposed to going to some fee manager. It is probably the most carefully monitored fund on the planet.

Many members of Congress and top government officials are invested in it. And it is simple, with five basic funds covering the U.S. stock market, a bond fund, an international fund and the unique special treasury securities G Fund. It also has target-date funds that automatically adjust the investment mix.

Moving some or all of your TSP accounts to an outside investment also has its advantages. It is easier to make withdrawals, and can give investors many more choices. If you withdraw all your money from the TSP, you can never return. But there is a way to leave a little something to protect your right of return.

Before you decide to leave the TSP, or keep your money there, be advised that changes — big changes — are coming. The new withdrawal options can be viewed here.

Kim Weaver, director of external affairs for the TSP’s Thrift Investment Board is my guest on this week’s Your Turn radio show. She will outline each of the pending changes and tell how they will impact you and your retirement nest egg.

You can listen live at 10 a.m. at Federal News Radio or in the Washington, D.C. metro area on WFED, 1500 AM.

Nearly Useless Factoid

By Amelia Brust

The Center of the Universe can be found in Tulsa, Oklahoma. It is a circular design on a bridge and those who stand in the center of it will hear their voice echoed back in any direction. But to those standing outside the circle, sounds will be distorted.

Source: Atlas Obscura

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THRIFT SAVINGS PLAN TICKER

Jun 18, 2021 Close Change YTD*
L Income 22.8950 -0.0718 2.88%
L 2025 11.7475 -0.0782 5.61%
L 2030 41.3301 -0.3582 7.07%
L 2035 12.3983 -0.1179 7.71%
L 2040 46.8639 -0.4865 8.36%
L 2045 12.8274 -0.1425 8.91%
L 2050 28.0756 -0.3333 9.49%
L 2055 13.7453 -0.2025 11.70%
L 2060 13.7453 -0.2024 11.70%
L 2065 13.7452 -0.2024 11.69%
G Fund 16.6073 0.0007 0.53%
F Fund 20.8808 0.0657 -2.22%
C Fund 62.4507 -0.8275 12.61%
S Fund 82.8816 -1.0758 11.60%
I Fund 38.5980 -0.6987 10.58%
Closing price updated at approx 6pm ET each business day. More at tsp.gov
* YTD data is updated on the last day of the month.