FAQ Regarding New TSP Investment Options by Ron Raffino

For all federal workers, there have been many questions making their way to the surface in recent weeks with regards to TSP investment options, TSP Withdrawal options and what is being called the TSP Investment Window. However, there is one that seems to be dominating; ‘when will these investment choices be available for the TSP?’. Therefore, it is time to provide a full answer so keep reading if you need to know!

If you were unaware, TSP stands for Thrifts Savings Plan, and it is essentially a program for all federal employees styled much like a 401(k). In total, five different funds are reflecting the different bond and stock markets. In 2019, tracking international stocks (one of the five) will expand to include Canada and many other emerging markets, and this is perhaps the biggest change in the recent announcement.

Furthermore, another change will be seen with the ‘lifecycle’ funds and withdrawal dates have been released offering 2020, 2030, 2040, and 2050. Ultimately, these funds combine basic fund investments with different ratios and, as time passes, they become more conservative. When 2020 arrives, the TSP will start to offer five-year increments with funds (ending in 2065) as all funds with the date merge with current income funds.

Elsewhere, the TSP is also looking to add flexibility to investing through what they are calling an ‘investment window.’ Rather than being restricted by investments, they want to allow all account holders to invest in actively managed mutual funds as well as various other funds rather than just those they offer already.

Finally, Congress has recently received potential bills to add more options when it comes to withdrawing. In particular, they should help those aged 59 1/2 and above (as long as they are still employed).

There we have it, the expected changes in the coming years and when they will make an appearance. According to all involved, these changes will bring the TSP into the 21st century and level with other retirement savings programs currently available in the market.

 

About The Author:  Ron Raffino

Ron Raffino is a lifelong resident of Newark, New Jersey, Ron specializes in Federal Benefits and Education Retirement plans. Mr. Raffino helps individuals maximize the benefits earned during their working years. As retirees enter into the ‘golden years,’ the government systems in place are difficult to comprehend for the former employees. Constant changes can be overwhelming.

As a retirement specialist, Ron enjoys personal fulfillment planning for the security and growth of a client’s funds. Fishing, hunting, camping, and hiking are endeavors that Ron also enjoys participating in, along with his family which is another priority alongside his clients. With the utmost consideration, Ron revels in the opportunity to assist you with any and all financial inquiries or needs. Let’s plan your future together!