With close to 5 million participants, the Thrift Savings Plan is already pretty popular. It could get a whole lot more popular if recent recommendations on military compensation are implemented. As expected, the Military Compensation and Retirement Modernization Commission recommended adding government TSP matches for active and reserve service members, to compensate for a reduced retirement annuity. With an authorized US military strength in 2015 of just over 1.3 million personnel in the four services, that could substantially increase the … moreComments Off on TSP Could Become a Lot More Popular in Coming Years
The Military Compensation and Retirement Modernization Commission is set to release its recommendations within the next week. It will be interesting to see whether the Thrift Savings Plan will play an enhanced role in a modernized military retirement reform package. The commission has been studying compensation for over a year now, and their report is due by Feb 1. The outgoing defense secretary has been making the rounds the last few weeks, letting folks know that the commission’s report is … more1 Comment
Interested in investing in other funds besides those offered in the TSP? For example, in “socially responsible” funds, real estate funds, precious metals, or emerging markets? The TSP Enhancement Act of 2009 granted the Federal Retirement Thrift Investment Board the authority to establish a “Mutual Fund Window” through which TSP investors could invest in a wider universe of funds, and more than five years later, the board provided their “conceptual support” to the creation of a MFW late last year. … more1 Comment
It’s official: BlackRock won the contract to continue managing the S Fund. According to the FRTIB’s recent press statement: The Federal Retirement Thrift Investment Board (FRTIB) announced today that it has selected Blackrock Institutional Trust Company, N.A. as the investment manager for its Small Cap Stock Index Investment Fund (S Fund). The S Fund invests in a stock index fund that tracks the Dow Jones U.S. Completion Total Stock Market Index. The earnings consist of dividend income and gains or … moreComments Off on BlackRock’s Three-peat*
There was an excellent article in the back pages of today’s Wall Street Journal titled “Yes, You Can Time the Market.” It detailed a method of determining when market fundamentals are too frothy, and how to re-adjust one’s stock holdings versus bond holdings. The author focuses on the Shiller P/E ratio for the S&P 500, which currently stands at a rather high 26.31. For comparison’s sake, right before “Black Tuesday” in 1929, the ratio stood at 30, while during the … moreComments Off on Market Fundamentals as ‘Market Timing’?