Return to Article: TSP board concerned about participants' investing styles
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3644
Before they add new funds, the TSP folks need to get transaction history online. Vanguard clients can access up to nine years of transaction history for any account. We TSP folks can't tell what happened in Jan - March 2004 until mid-April of 2004! Fix this stuff before adding "lifestyle" funds.
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3593
How many of you read the monthly FRTIB minutes? It's too bad we can't respond to the board so we can let them know how we feel. Here is the site for the boards minutes. http://www.frtib.gov/FOIA/index.html
Denny
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3529
Is there a 1-800 number I can call to get investment advice?
Maybe there is since there is none for customer service.
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3501
It would have been nice if New Orleans had been allowed to bid initially. Perhaps the wait for a new system wouldn't have been so long, or so expensive.
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3490
1. You can do interfund transfers and contribution allocations everyday. If you do it before the cutoff time of 11AM CST (Board decided this time) then it will be processed that night. You can change the amount you contribute four times a year during open season.
2. NFC can only work with what the Board gives them, which isn't that great. The service office can only work with the new system they were given, which isn't that great. It doesn't matter if the Board goes to another vendor because the new vendor will also have to work with the crappy system that NFC has to use now.
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3452
Until the management at the TSP allows its subscribers the freedom to change investments in the same manner that investors can change investments with any legitimate and reputable investment house, subscribers will be slow to change any investment. The TSP has thousands of my dollars in its coffers, yet I can only change my portfolio distribution during limited open window periods throughout the year. I should be able to make changes daily with a simple phone call.
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3424
1. I echo the comments of the earlier posters.
2. TSP is not my only investment and what I do with any of my investments should be of no direct concern to the board. While appreciative of any "advice" they may wish to give, I would hardly take any of it to the "bank". The manner in which these "experts" have managed the overall TSP program, the non-customer oriented gang in New Orleans, etc has not instilled any confidence in me to take any of their "advice".
3. If they really wish to be of value to us (you remember the customers) they should first clean up the management of the overall program and either find another vendor or get the Ag Dept to clean up that mess down in good ole New Orleans.
Senior ISR Advisory
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3423
From my reading of the messages posted on the other TSP-related article and discussions I have had with employees who deal with payroll interfaces to the TSP System, I really think the Thrift Investment Board should concentrate on fixing the current "new" system before adding more fluff to it. We have enough problems ensuring that TSP deductions are deposited to the correct employees' accounts right now. Plus, the "new" system probably doesn't have 10% of the data edits the legacy system had. Is it any secret that the Board is trying to move any and all business to MATCOM? First the old TSP web page. Second, the TSP System was given to MATCOM after the Board and AMS failed miserably to get it up. At least AMS got the TSP contract through a competitive process. Third, it seems to be a given that MATCOM will somehow partner with the Board on the Parallell Call Center that was advertised late last year. Now, MATCOM will add new funds?
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3405
Given the fact that my only retirement "income" will be my civil service retirement monies, I HAVE to invest carefully (read: conservatively). Social Security is out, the Windfall Elimination Provision and the Government Pension Offset take care of that. Taxes, basic daily living expenses and insurance premiums (health/auto/home) will take a heap of funds when I hit retirement. My investing is done conservatively because I can't afford to take major risks. As my dad always says, a fool and her money are soon parted.
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3404
One of the best features of the TSP is "the risk-free asset." Those of us that have investment theory education have been introduced to the work of Markham (I hope I remember the spelling) and his theory of the "efficient frontier." Basically the concept provides that in order to achieve maximum investment return given an acceptable level of risk to the investor, one must hold a portfolio of assets which includes a risk free asset along with other assets bearing varying degrees of risk.
Since the treasury securities in the TSP are generally regarded as risk-free, I hold them . . . as part of my total portfolio . . . however, what the TSP apparently does not realize is that many of us hold other investments (for me, it is mutual funds that do not feature treasuries as a possible option). Thus, I invest in somewhat riskier mutual funds outside of the TSP. My complete portfolio therefore includes the TSP Government fund, Roth IRA mutual funds, retail mutual funds (not tax deferred on contributions or interest), a 403B for my wife (invested in various risk categories but with no treasuries), along with cash in short term and long term savings, and the tangible real property investments in our personal residence. I like to think that my wife and I have a well diversified portfolio.
One other thing about investing which borrows from the field of economics . . . people generally strive to maximize their satisfaction through a rational decision-making process. People generally are better informed and make more rational decisions than "experts" in government realize. Those experts tend to seize upon a "big I, little you (ewe?)" perspective, and assume that most people are sheep. They know what is best for you and I, and attempt to manipulate our behavior accordingly. Isn't that comforting that some of those experts are now trying to shepherd us out of the safety of treasuries and into the treachereous realm of risk?
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3403
Another nice contract to fatten MATCOM's wallet. Maybe the Board should have provided investment advice for participants to purchase MATCOM stock. With all of the "competitive" business being removed from Federal employees and given to MATCOM, our administrative expenses are going to (further) skyrocket!
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3402
The FRTIB is not my mama or daddy. If I want advice on how to invest, I can hire a financial manager. It's my money and my responsibility to manage it, not theirs. Their job is to ADMINISTER the TSP plan in a financially responsible manner WITHOUT incurring unnecessary costs.
Each federal employees' circumstances is different, and there is no humanly way possible for the FRTIB to make the right or best decision for a majority of us.
The board should stop worrying about employees making bad choices, and concentrate on managing the plan and providing honest, accurate information.
Where we invest our money is not their responsibility, providing adequate choices to invest is their mandate.
Mr. Amelio stated "Every vendor has indicated the more choice you give to participants, the more money you are going to see come into the fund,". Why is the board looking to encourage "more money" coming to the funds??? Who is going to benefit most from that???
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3401
I think that TSP management has eroded the confidence of the federal employee investor. The participants had to pick up the tab for the snafu when the previous computer installation company was removed from the contract and they won a multimillion dollar suit. As a federal employee investor, I am no longer convinced that TSP management is looking out for MY best interests. I believe that management is in it for THEIR best interests and we, the federal employees, are a secondary consideration at best. At any one time, I am totally unable to learn in what companies the management is investing. I have asked several times only to be told, "We can't give you that information." To say that you feel we (federal employees) are investing too conservatively - what would you expect when WE are dinged financially for your problems. It is not your $ that is at stake - it's a large portion of our retirements that is at risk.
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3400
This is great advice; brought to you by the folks who paid $32 million dollars of fund money for a broken computer system.
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3388
The FRTIB is concerned federal employees will invest their funds too conservatively. Gee, I wonder if it's because of the volatile stock market and half the workforce being within 5 years of retirement? The board should do us all a favor and stop worrying about how we invest our money and concentrate on keeping their house in order. Judging from what I've seen the past 12 months, they've got an uphill battle just doing that.
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3385
Please tell me how to invest to increase my returns, guarantee the results, and I will gladly follow your advice ! How can anyone, including the TSP Board, know what the future portends ? I think this is unbelieveably pretentious.
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3383
And of course TSP's board knows better than we do about how we should invest our money! That is why they did such an outstanding job of implementing the automated data system! Does the board know what other resources we have beyond TSP or do they think TSP is the only investment we have?
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3380
There's no need for TSP to add more funds. Research of 401K programs shows that having too many choices actually decreases the number of people who sign up at all.
Need to look at the Vanguard model (I'm sure other firms do this too) where the lifestyle part comes from investments in existing offerings.
Under TSP, you could have a choice that automatically moves you from 80% G fund, 20% F fund to 60% G fund, 40% F fund at a given age. Even better if you let employees choose the percentages and the future dates.
I have all the flexibility I need today. It would be nice to be able to preload investment changes. I could tell TSP today: switch 1/3 of my G fund to F when I reach 55. When I reach 60, move this much to C fund. When I reach 65, move the remainder to C fund. That would help put it on auto-pilot.
Once a year, I could look to see if something was getting unbalanced.
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