Q: So what you’re saying is, the S Fund falls under NASDAQ and the I Fund falls under the Dow? Am I understanding that correctly? A: No. You’re confusing exchanges with indices. The C Fund tracks the S&P 500 and the S Fund tracks most of the rest of the domestic stock market.
Author Mike Miles
Mike Miles
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.
Q: I’ve just read your latest column, entitled “Odds Favor Gains in Market.” I have about $350,000 in my Thrift Savings Plan. Just before the major slide occurred in August 2008, I transferred all funds to the G Fund. I then shifted about 25 percent to the L2020 funds. I continued all new contributions in C, S and I Funds. I was lucky to the extent that I only lost about $20,000 due to the downturn. My problem was when to put the funds, which now represent 67 percent of my funds, back into the other less conservative funds. Obviously,…
Q: Is there any way for me to see what specific stocks my Thrift Savings Plan is invested in? I can see the general funds, but what about specific companies? A: You’ll need to check the TSP Fund Fact Sheet for each fund for the description of the index on which the fund is based, and then research that index for a list of its components. For example, the C Fund tracks the performance of the Standard and Poor’s 500 Index, which is a proprietary, weighted collection of 500 stocks. By the way, there is no guarantee that the funds…
Q: I sold a private business several years ago and entered federal service. I have a large part of my portfolio in a Simplified Employee Pension IRA. Can I move my SEP money into my Thrift Savings Plan? A: Yes, as long it contains no after-tax money. Use form TSP-60.
Q: If I retire from the Foreign Service this year at age 50, I would like to continue to save for the traditional retirement years (after age 70). What is the best way to do that? Can I contribute to my Thrift Savings Plan for years to come via IRA transfers using form TSP-U-60? If so, are there constraints? A: The best way to save will depend upon your circumstances and goals. There is no correct, one-size-fits-all answer. Under current rules, you may continue to move money into your TSP account from an IRA account, indefinitely, with no limit. Keep…
Q: I know the C Fund tracks the S&P 500, but what do the S Fund and I Fund fall under? A: The S Fund tracks the Dow Jones U.S. Completion Total Stock Market Index, which covers all actively traded U.S. common stocks not included in the S&P 500 index. The I Fund tracks the Morgan Stanley Capital International EAFE Stock Index, which covers certain large company stocks from certain developed nations outside of the U.S. Simply, you can consider the S Fund to represent medium and small U.S. company stocks, and the I Fund to represent the stock of…
Q: I retired last year under the Civil Service Retirement System and have read that the rules for Roth IRAs have changed. Can I roll over my Thrift Savings Plan money to a Roth IRA in order to reap the tax-free benefits down the road? I’m 61, and will not be eligible for Social Security. If I can roll over the money, is there a limit as to how much? A: You may convert your TSP funds to a Roth IRA and there is no limit on the amount. However, you should carefully consider whether this would be in your…
Q: Do you know of any provisions in the Federal Erroneous Retirement Coverage Corrections Act that allows one to get a Thrift Savings Plan loan with agency matching funds in their TSP account? In April, while employed with the Department of the Army, the Army Benefit Center informed me that I was entitled to retirement plan corrective action under FERCCA. In July, I submitted my FERCCA election form to enroll me into Civil Service Retirement System Offset retirement coverage from the Federal Employees Retirement System. ABC sent letters to my previous employers notifying them of this change and informing them…
Q: Can I retire and leave my savings in the Thrift Savings Plan? If yes, will there be a service charge? Will the account grow if I switch to the G Fund (government bonds)? A: Yes, you may — and I generally recommend that participants do — leave your money in the TSP after you separate from service. There are no “service” charges, just the extremely low expenses of running the program that apply to all participants. The G Fund is not really a bond fund. It’s a guaranteed income contract with a stable share value and interest paid based…
I’ll start the new year off by reviewing what turned out, in the end, to be pretty terrific investment performance by the Thrift Savings Plan in 2009. In spite of what some perceive to be a difficult market to navigate, all five of the TSP’s individual investment funds — the C, S, I, F and G Funds — and the five L Funds, which are each composed of varying amounts of the five individual funds, turned in positive returns for the year. Not only did all 10funds produce gains for the year, but the eight funds with exposure to the…