Low-cost funds


Q. Can you comment on low-cost fund families (Vanguard for one) versus the TSP funds? You always recommend TSP funds because of their low cost. However, there are fewer funds in the TSP to choose from than there are available in Vanguard. Vanguard’s costs are not out of reason. Why not use Vanguard funds for the better selection at a still low cost?

A. It is possible to find low-cost funds outside of the TSP. You can’t find anything like the G Fund anywhere but the TSP, however, and that is the strongest reason to stay with the TSP.


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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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