TSP improvements

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Scarfinger
Posts: 830
Joined: Mon Jan 30, 2012 12:00 am

TSP improvements

Post by Scarfinger »

No waiting period required between withdrawal requests

As of May 15, 2024, the TSP withdrawal process no longer requires a 30-day waiting period between withdrawal requests. Because you can now complete your withdrawal requests entirely online in My Account, we can process your requests more quickly.
Our goal is to make the TSP the best place for you to manage your retirement income, and we hope this change adds flexibility and convenience to your planning. Remember that you can keep your savings in the TSP after retirement and continue taking advantage of our low-cost funds. All retirement plans charge fees, and TSP fees are lower than 99% of investment options.*
My current plan was to leave the TSP but...they keep making improvements. I may have to think twice about leaving?
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation of

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jimcasada
Posts: 327
Joined: Mon Jan 12, 2015 4:40 pm

Re: TSP improvements

Post by jimcasada »

I just transferred $111k out of my TSP to my private IRA, mainly so that I could have quick and easy access to my money (just in case I need it in the next 3 months while my wife is out of town overseas.).

Bubba
Posts: 485
Joined: Thu Mar 05, 2020 3:40 am

Re: TSP improvements

Post by Bubba »

Scarfinger wrote: Tue May 21, 2024 11:03 am
No waiting period required between withdrawal requests

As of May 15, 2024, the TSP withdrawal process no longer requires a 30-day waiting period between withdrawal requests. Because you can now complete your withdrawal requests entirely online in My Account, we can process your requests more quickly.
Our goal is to make the TSP the best place for you to manage your retirement income, and we hope this change adds flexibility and convenience to your planning. Remember that you can keep your savings in the TSP after retirement and continue taking advantage of our low-cost funds. All retirement plans charge fees, and TSP fees are lower than 99% of investment options.*
My current plan was to leave the TSP but...they keep making improvements. I may have to think twice about leaving?
They are making it difficult.

For now, if I were to be retired (almost another 20 years for me!), then I would probably move it to my private investment account only because (a) there are way more options (MFW is too expensive and only includes mutual funds) and (b) ETFs are cheaper and more efficient than most of the index funds offered by the TSP.

That's just me though!

Bubba823
Posts: 37
Joined: Wed Aug 23, 2017 8:16 am

Re: TSP improvements

Post by Bubba823 »

Still can't withdraw from a specific fund unless that's your entire holding.

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Scarfinger
Posts: 830
Joined: Mon Jan 30, 2012 12:00 am

Re: TSP improvements

Post by Scarfinger »

Bubba823 wrote: Sat May 25, 2024 7:11 pm Still can't withdraw from a specific fund unless that's your entire holding.
Good point.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation of

searight
Posts: 90
Joined: Wed Jan 16, 2013 8:56 am

Re: TSP improvements

Post by searight »

The changes that the TSP is making are good and it is no longer an auto-decision to pull out of the TSP. But, I am planning when I reach 59.5 (but not retired) I will move half of my 30+ year TSP to Fidelity (or the other two) for the following reasons.
- Diversity - It is scary having such a large amount all in one financial institution. Problems are rare but I do hear about horror stories where a mistake causes funds to be unavailable at times.
- More control - Ability to chose if I want to pull funds out of Roth or Traditional and out of cash/income/growth(G/F/C) accounts.
- Lower expense ratios - While TSP is very low expense ratios some of the others appear to have lower expense ratios that I will have to dig into more.

From what I understand if it doesn't work out I can roll it back over as long as I keep some money in the TSP.

Bubba823
Posts: 37
Joined: Wed Aug 23, 2017 8:16 am

Re: TSP improvements

Post by Bubba823 »

searight wrote: Tue May 28, 2024 12:57 pm The changes that the TSP is making are good and it is no longer an auto-decision to pull out of the TSP. But, I am planning when I reach 59.5 (but not retired) I will move half of my 30+ year TSP to Fidelity (or the other two) for the following reasons.
- Diversity - It is scary having such a large amount all in one financial institution. Problems are rare but I do hear about horror stories where a mistake causes funds to be unavailable at times.
- More control - Ability to chose if I want to pull funds out of Roth or Traditional and out of cash/income/growth(G/F/C) accounts.
- Lower expense ratios - While TSP is very low expense ratios some of the others appear to have lower expense ratios that I will have to dig into more.

From what I understand if it doesn't work out I can roll it back over as long as I keep some money in the TSP.
At 59½ you can now choose to withdraw from Roth or Traditional. The main issue is not being able to pull from a specific fund. Also, yes you can roll money back into TSP, but not Roth money.

My Vanguard IRAs work best for me because I can just keep whatever cash I need for 2 or 3 years in my settlement fund. I have already moved most of my TSP to Vanguard. I'm still working so I'll keep TSP for now to get the match.

I'm at 15% YTD with Vanguard and 11% with TSP.

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jimcasada
Posts: 327
Joined: Mon Jan 12, 2015 4:40 pm

Re: TSP improvements

Post by jimcasada »

I can withdraw funds from my IRA the same day vs waiting 2 weeks with TSP (that's how long it took last time). I can also return funds back to my IRA within 90 days, in case I change my mind (or just needed a very short term makeshift loan).

searight
Posts: 90
Joined: Wed Jan 16, 2013 8:56 am

Re: TSP improvements

Post by searight »

Bubba823 wrote: Wed May 29, 2024 11:11 pm
At 59½ you can now choose to withdraw from Roth or Traditional. The main issue is not being able to pull from a specific fund. Also, yes you can roll money back into TSP, but not Roth money.

My Vanguard IRAs work best for me because I can just keep whatever cash I need for 2 or 3 years in my settlement fund. I have already moved most of my TSP to Vanguard. I'm still working so I'll keep TSP for now to get the match.

I'm at 15% YTD with Vanguard and 11% with TSP.
Thank you. Good information to help me create my 59 1/2 strategy.

Most of the money that I move will be traditional, but the I will move a couple $K from Roth TSP to a Roth IRA so that I can start a five year Roth clock. Since I cannot contribute directly to a Roth IRA, I believe this is the only way that I can create one.

Bubba
Posts: 485
Joined: Thu Mar 05, 2020 3:40 am

Re: TSP improvements

Post by Bubba »

jimcasada wrote: Thu May 30, 2024 9:59 am I can withdraw funds from my IRA the same day vs waiting 2 weeks with TSP (that's how long it took last time). I can also return funds back to my IRA within 90 days, in case I change my mind (or just needed a very short term makeshift loan).
I have absolutely no trust in Alight to be more efficient than the previous TSP team. In fact, they seem worse in many cases. I would also consider what you're mentioning a pretty important thing. After retirement, healthcare issues can pop up out of nothing and getting the money quickly can make a BIG difference.

TSP0nlinee
Posts: 7
Joined: Mon Jun 29, 2015 3:28 pm

Re: TSP improvements

Post by TSP0nlinee »

Any one know where to find the dollar amt roth versus trad per fund at TSP. gov? K

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Fund Prices2024-11-07

FundPriceDayYTD
G $18.63 0.01% 3.74%
F $19.62 0.70% 2.08%
C $94.16 0.75% 26.62%
S $93.11 0.36% 20.77%
I $43.87 1.05% 9.18%
L2070 $10.70 0.79% 6.97%
L2065 $18.05 0.79% 19.41%
L2060 $18.05 0.79% 19.41%
L2055 $18.06 0.79% 19.41%
L2050 $35.66 0.70% 16.51%
L2045 $16.19 0.67% 15.71%
L2040 $58.84 0.63% 14.92%
L2035 $15.45 0.58% 14.01%
L2030 $51.16 0.53% 13.10%
L2025 $13.82 0.29% 8.74%
Linc $26.82 0.26% 7.67%

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