My thoughts on the MFW: You need $40,000 in your account to be able to invest in the MFWTrujillojd wrote: ↑Sun Jul 24, 2022 5:59 pm I am still trying to adjust to this new TSP site. I have moved some funds over to the mutual fund window, but I am unsure of how it works. Are we still held by the same 2 moves a month rule on this window? Do the moves apply to the TSP? If the same rules do not apply, is this a benefit to additional moves (minus the additional fees)? What have been your experiences so far with the MFW?
The $40,000 figure results from two restrictions on using the window: no outside investment can bring the total above 25 percent of the person’s total account balance, and the initial transfer in must be at least $10,000. Those requirements may give some investors pause, as may annual fees totaling $150 plus a $28.75 per-trade fee and the additional fees charged by the outside funds.
So basically it looks like 150$ initial transfer fee + 150$ annual fee + Fund fee. So maybe some of these funds are...ok? if you can find some with low cost. It looks like they have some passively managed fund choices with low fees, so maybe. But, still can't get passed the $150 dollar annual fee.
To me you would need to invest at least $62,500 meaning you would have a TSP account of $250,000 so your annual fee would be .25% plus the fund fees. This would be a 500% cost increase over the standard TSP cost of around 0.05%. The .25% cost is similar to some online management companies like "Betterment". This still doesn't account for the $28.75 dollar charge each time you move money around from what I understand. You still only get 2 transfers from what I understand.
If you had 500,000 TSP account you could put $125,000 in and reduce the fee cost to 0.12% which would be low enough for me to invest in the MFW.
Imagine the FERS employee with $40,000 in his TSP that qualifies to put the minimum of $10,000 (25% of his TSP balance) into the MFW. They will be paying (150$ administrative fee) +150$ transfer fee% + fund fees which is around 3%+ cost on his $10,000. Then the annual fee of 150$ would be 1.5% cost on 10,000$. So your initial set up cost is 6000% more on $10,000 vs the TSP 0.05% cost. Then the annual fee of 150 dollars is 1.5% on $10,000 which is 3000% more than the TSP .05% cost.
At least he would only be getting raped on a max of 25% of his account.
If you are doing a Monthly or Daily strategy, the "$28.75 per-trade fee" will eat you alive especially if you have a low balance in the MFW account. Looks only viable for the naïve, and or the buy and hold investors.
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation ofTimboSlice wrote: "People really need to stop overthinking this."
On a side note: I was only on hold about 5 minutes before talking with a real human.
This is such a cluster...
Looks like I need to file another TSP-3 form (paper) just to be sure. One (just one) of the complicating factors is that my spouse has their own TSP account which the computers can't compute.