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How does the Thrift Savings Plan compare to other plans concerning expenses?

Jan 16, 2012 by Lynne from Pompano Beach, FL in  |  Flag
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9 votes

The TSP has very low investment expenses because it is utilizing index funds and the huge pool of dollars inside of the plan has allowed for the internal expenses to be extremely low. To give you an idea, the TSP offers index funds around 0.025% and these funds would cost most investors around 0.07% - 0.30%. The question to consider is the possibility of building a better portfolio outside of the TSP or utilizing other investment options to compliment the TSP.

View all 6 Comments   |  Flag   |  Jan 16, 2012 from North Richland Hills, TX
Heidi Charlotte Davis

Some investments are not represented in the Thrift Savings Fund (Real Estate, International Emerging Markets Funds) which you may invest in "outside" the TSP in an IRA. Research has indicated that using some investments, currently not included in the TSP, may offer better results in your unique situation.

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Flag |  Jan 16, 2012 near Bellevue, WA
Ryan

Dayle and Heidi, I have heard that the TSP recaptures securities lending revenue from its fund managers and uses that revenue to offset some of the plan's administrative expenses. Is that your understanding as well?

Flag |  Jan 18, 2012 near San Diego, CA

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0 votes

Possibly from an independant RIA fiduciary. Best of luck!

Comment   |  Flag   |  Jan 23, 2012 from Port Washington, NY

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-2 votes

TSP fund internal expenses are generally lower than most other plans

Comment   |  Flag   |  Jan 16, 2012 from Boston, MA

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