TSP to Implement the Long-Awaited Mutual Fund Window… But What are the Costs?
The new TSP mutual fund window has been a long time coming. What are the costs associated with using it?
In a world of microwavable meals, lightning-fast computers, immediate access to numerous facts on your phone, and instant oatmeal, intensely embraced old-school bureaucracy can sure be frustrating.
For nearly 13 years, many federal employees (and advisors working closely with Feds) have been waiting for additional Thrift Savings Plan (TSP) investment options. This is what we might call being rushed along at the Speed of Bureaucracy.
Five index funds (although there could be some argument about the accuracy of calling the G Fund an index fund) have always seemed to be a bit thin in providing investment options. Even with the addition of pre-allocated blends of Lifecycle (L) funds (varying mixtures of the same five index funds), the choices were lean.
Timeline of the development of the TSP Mutual Fund Window (MFW)
2009
An important date to the enhanced individualized structuring of federal retirement savings was June 22nd, 2009. The Thrift Savings Plan Enhancement Act of 2009 (the Act) 111-31 was signed into law. Specifically, the Federal Retirement Reform Act of 2009, Sec. 104, Authority to establish mutual fund window.
2015
Tic-Toc, Tic-Toc, SIX YEARS LATER, the TSP board approved the enhancement proposal.
2020
Eleven years after the aforementioned “Thrift Savings Plan Enhancement Act of 2009,” the FRTIB contracted with a “recordkeeper,” thus crossing a major hurdle in allowing for the detailed planning and implementation of the MFW.
2022
If you have been anxiously awaiting augmented investment alternatives, your wishes will be answered this coming June. Follow link to learn more: TSP To Implement The Long-Awaited Mutual Fund Window… But What Are The Costs? | FedSmith.com
