Welcome to TSP Strategies

Welcome to TSPstrategies.com! This Web site is dedicated to exploring the benefits of saving and investing in the Thrift Savings Plan.

The companion book, TSP Investing Strategies: Building Wealth While Working for Uncle Sam, lays out a simple set of strategies for long-term, buy-and-hold investors to consider while investing in the TSP. This Web site and accompanying blog will build on those concepts, while focusing on new investing options and developments related to the TSP.

TSP Stratagies Number One on Amazon

Monthly Archives: October 2012

Oct


30

How Much ‘Star Wars’ Do You Own?

In a surprise announcement today, Disney said it is buying George Lucas’s Lucasfilm Ltd and its “Star Wars” franchise for $4.05 billion in cash and stock. Lucasfilm was wholly owned by George Lucas, so until now, the only way to own any of the Star Wars franchise was to buy the movie trilogy or hexology – or any of the myriad cartoons, video games, and other random merchandise – at the store. Once the sale of Lucasfilm is completed (and … more

1 Comment

Oct


26

The TSP and Independence

When I was a reservist in the mid-1990s, I witnessed an unexpected event:  A fellow soldier in my unit was approaching his 12th year in the military – a stint on active duty followed by a few years in our reserve unit – and it was time to re-enlist.  The only thing was, he didn’t want to. He was an E-7, Sergeant First Class, in a critical skill (he was a linguist).  He was offered a nice bonus – not … more

Leave a comment

Oct


25

Increase in 2013 Contribution Limits for TSP, IRAs, and HSAs

The IRS recently announced an increase in the 2013 contribution limits for the Thrift Savings Plan and for Individual Retirement Accounts (IRAs). The contribution limit will rise from $17,000 this year to $17,500 in 2013.  The $5,500 catch-up contribution limit for those 50 and over will remain the same in 2013. For IRAs, the $5,000 contribution limit this year will rise to $5,500 in 2013. As noted previously, the 2013 limit for Health Savings Accounts (HSAs) has also increased, from … more

Leave a comment

Oct


23

Greece Effectively Dropped from I Fund

Given all the troubles in Europe – and particularly in Greece – one of the more frequent questions that comes into this site is how much of the I Fund is invested in companies located in that country. The TSP’s I Fund seeks “to match the performance of the Morgan Stanley Capital International EAFE (Europe, Australasia, Far East) Index.”  According to MSCI’s definition of the EAFE index, the index currently invests in 22 countries, including Greece. While the TSP does … more

Leave a comment

Oct


22

Falling Expenses Make Outside Investments More Competitive with TSP Funds

TSP administrators should beware: private-sector funds are becoming price-competitive with the TSP as their expense ratios fall to within reach of those of funds in the Thrift Savings Plan. The TSP historically has had several features to recommend it compared to investing in other accounts.  Foremost are the tax-advantaged nature of the TSP funds and the extremely low expense ratios compared to funds offered by outside companies. However, the selection of funds in the TSP is limited compared to the … more

2 Comments

Oct


19

25th Anniversary of the Crash

October is a month of crashes. One of the biggest market crashes took place 25 years ago today.  After gradually increasing some 20% in 1987 through the end of September, the S&P 500 began to fall in early October, and then plunged on October 19th.  Black Monday. From a high of 336 in August, it dropped to 224 on this day.  That’s a fall of one-third from peak to bottom.  In one day, it fell 22%, from 282 on Friday, … more

Leave a comment

Oct


14

For Open Season, Do You Prefer an FSA or HSA?

While open season for CFC began in September, open season for health care begins next month on November 12th. Among the options for paying eligible health care expenses for the coming year, you can plan to pay by using either a Flexible Spending Account or by using a Health Savings Account.  Both use pre-tax dollars to pay for medical expenses and thus save your family money, but they differ in several significant ways. The Flexible Spending Account (FSA) was created … more

Leave a comment

Oct


09

A TSP App By Late 2013?

The Thrift Savings Plan has changed a lot over the past ten years.  In 2002, it expanded the number of funds from three to five, and a few years later it created a series of lifecycle funds.  Also in 2002, the TSP opened to uniformed service personnel, and participation subsequently expanded by 50% over the next ten years. That same year, the TSP Web site began to post the daily closing prices for each of the funds, and participants eventually … more

2 Comments

Oct


02

One Group Who Has Turned Down $19,000,000

We’ve all read the stories.  A group of co-workers pool their money to buy a stack of lottery tickets.  The more lottery tickets, the better chance they have of hitting the jackpot.  And then they hit it big.  $10 million, $50 million, $100 million or more.   Back in April, a group of three educators in Maryland won a portion of the $656 million jackpot, for example. If you were part of a group that won $19,000,000, would you turn it … more

1 Comment
SEO Powered by Platinum SEO from Techblissonline