Re: [TSPStrategy] Is anybody worried about the new administration raiding our TSP accounts?

The expenses for the index funds of the TSP, Vanguard, Fidelity, and Schwab are now so low that the minor differences can only be seen with a magnifying glass. And some differences in performance between funds are because of their different holdings (C is an S&P 500 fund, FZROX aims to be a total market fund), not because of the particular skill of Blackrock vs Fidelity. 

I think the key factors in the decision to hold or not hold funds outside of the TSP lie elsewhere. Here are three:

1) It used to be that you could not do Roth conversions within the TSP. So, you had to rollover some of the TSP to an IRA to do it. That will change in 2026 when conversions will be allowed within the TSP. So, this issue is probably now a wash. 

2) Depending on the state you live in, liability protection of your retirement funds can be (not always) superior in the TSP.

3) Inheritance of your funds to your spouse is not a big deal in the TSP, but the TSP is a terrible place to keep you money if the next in line are your kids--a large tax hit might have to be taken by them. 

Because of the last one, I plan to at least reduce the size of my TSP. I don't want my spouse to have to deal with it. 

On Tue, Dec 24, 2024 at 8:56 AM Dave in Dallas via groups.io <datruedave+GroupsIO=gmail.com@groups.io> wrote:

Fidelity Zero Total Fund Index (FZROX) has been doing well for me without any fees at all. Up 34.51% over the past year, compared to 33.84% for the C fund.  Interesting that there's such a big difference in the return percentage for the past 12 months compared to 2024 YTD.  I guess the market moved up a lot the last week of 2023?  I don't normally pay attention to stuff like that.

 

FZROX:

2024	27.74%
2023	26.21%

Index funds are all going to perform substantially the same if they're tracking the same stocks.  Zero fee options are available at Fidelity and Vanguard.  Other places may have them now, too.

 

 

On Mon, Dec 23, 2024 at 01:20 PM, Jim Budinger wrote:

Great, in concept. So, which ETFs that you actually invested in this year are beating the 28% return of the TSP C Fund so far, and beat the 26% return last year as well?

_._,_._,_

---

Groups.io Links:

You receive all messages sent to this group.

View/Reply Online (#3838) | Reply to Group | Reply to Sender | Mute This Topic | New Topic
Your Subscription | Contact Group Owner | Unsubscribe [prefander.leadersworkshop@blogger.com]

_._,_._,_

Anda baru saja membaca artikel yang berkategori dengan judul Re: [TSPStrategy] Is anybody worried about the new administration raiding our TSP accounts?. Anda bisa bookmark halaman ini dengan URL https://1stleadershipworkshop.blogspot.com/2024/12/re-tspstrategy-is-anybody-worried-about_49.html. Terima kasih!

Ditulis oleh: Andriansyah -