TSP: Best investment vehicle?


Q. I am an avid follower of the Federal Times Q & A section and would like some clarification on a statement I often see.  When people write in asking for any type of TSP investment advice, the answer is that there is no “one-size-fits-all” answer, which I could not agree with more.  However, when it comes to leaving funds in the TSP, rollovers, etc., the answer is always that the TSP is the best investment vehicle available.  In my opinion, this is another situation where there’s no “one size fits all” and would like to understand why there is such a definitive answer that this is the best investment vehicle.

A: I’ve said, repeatedly, that it is the best retirement investment vehicle available anywhere, and I’ve also repeatedly noted that this is because of the low cost and efficient diversification available there. These two factors produce higher risk-adjusted expected rates of return than you’ll find anywhere else.

What do you think might be a better place to invest for retirement? I’d love to hear from readers.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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