Re: [TSPStrategy] Staying/Leaving TSP Upon Retirement

I see it the same way regarding mimicking the TSP funds with a brokerage. Right now my current brokerage also provides free planning/stress checks with MoneyGuidePro.

I've brought up the Roth issue, which I understand surprises many. It surprised me the first time I learned about it.

Finally, there's also the bureaucracies and extra processing. Outside of the TSP, legacy (estate) planning and processing is much easier. The last thing I'd want is for my beneficiaries having to deal with extra processing and bureaucracies via the TSP. It's complicated enough with stretch IRAs gone. Also, many forms including when dealing with withdrawals require TSP forms to be notarized.



On 2/2/22 at 7:27 AM, ukchamps29_1999 via groups.io wrote:

From: "ukchamps29_1999 via groups.io" <ukchamps29_1999=yahoo.com@groups.io>
Date: February 2, 2022
To: TSPStrategy@groups.io
Cc:
Subject: Re: [TSPStrategy] Staying/Leaving TSP Upon Retirement

Probably not going to change your mind much, but TSP includes your roth balance when factoring Required Minimum Distributions.  Commercial accounts do not do this, relying solely on your traditional year end balance.  

The Fees are lower on the commercial side.  Set up a Schwab account is free, and place your holdings in an ETF costs nothing.  The expenses on those funds are .03% but you pay nothing, like the TSP they magically are paid and factored into share price.  Vanguard, Fidelity, etc all a similar story. 

Shop around and make an informed decision, but don't rely on TSP brainwashing that says they have the lowest fees around.  They have actually become quite more expensive than commercial offerings over the last 20 years.

Keep in mind, I am not advocating you pay a firm a 1% management fee of your assets, unless you find the management fee is offset by much higher returns.   Know there are options out there without management fees tied to them and less fees than TSP.  

It would be interesting if one of the chart gurus could plot VTI and SCHB vs C, S and I offerings of the TSP.

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