DFAS stealing TSP funds

[FLYTPAY]

When you contribute to your TSP account, DFAS forwards the funds on anywhere between the 1st and 4th of the month. This is between 0 and 3 days of-non interest earning stagnation! Over a year, this is a month of not earning interest. Furthermore, since your mid-month pay is about the same as your end of month pay, half of your contribution is stagnant for about 15 days! Since you have earned that money at that point, who should be gaining the interest on it? Let's look at the numbers. We will say you contribute $12000 every year to the TSP. That is $1000 each month or $500 each pay period. Because YOU are not getting the interest, the government is getting 1.9% of your money....assuming a 4% interest rate compounded twice a month. Why do we not get paid interest on the money we have set aside? The simple answer is to make two deposits per month...ON PAY DAY. Does this irritate anyone else?

 

[HokiePilot]

Yeah, I have thought about the same thing. I have set up an allotment to go from my paycheck to my Mutual Fund and it is only deposited once a month. I have considered switching to automatic account deductions to do it instead.

 

[FLYTPAY]

And this isn't even taking into consideration what you would be making with market exposure!

 

[Purdue]

TSP is a ripoff anyway. It would be worth it if we had "Fund Matching" but because we don't, you can easily find better investment options on the market... at varying degrees of risk, and even the low-risk ones give better performance than TSP

 

[bert]

TSP is a ripoff anyway. It would be worth it if we had "Fund Matching" but because we don't, you can easily find better investment options on the market... at varying degrees of risk, and even the low-risk ones give better performance than TSP

Are you factoring in the tax benefit? Because if you are, you would realize how exceptionally high of a return you would need to beat TSP's tax advantage, even with a mediocre fund performance. I also strongly suggest you understand the effects of fees/trading costs when trying to figure out what best to do with that fine Navy pay.

 

[FlybyWired06]

Are you factoring in the tax benefit? Because if you are, you would realize how exceptionally high of a return you would need to beat TSP's tax advantage, even with a mediocre fund performance. I also strongly suggest you understand the effects of fees/trading costs when trying to figure out what best to do with that fine Navy pay.

Thank you, Bert...I was going to bring up the same point. The money deposited in your TSP is un-taxed pay and there are no fees associated with TSP. When you encorporate fees and taxes into your mutual fund reasoning, TSP looks much better. However, it does stink that they might be holding onto our money for a couple of days, but not as big of a deal when you consider the extra tax breaks.

So, unless you find an amazing mutual fund return with low fees, no load, AND a low tax rate (usually meaning low turnover rate which, in turn, usually means lower ROR), you're not gonna find a much better deal than TSP...

Oh, but I do wish we got matching funds to a certain percentage of our investment!

 

[nittany03]

So, unless you find an amazing mutual fund return with low fees, no load, AND a low tax rate (usually meaning low turnover rate which, in turn, usually means lower ROR), you're not gonna find a much better deal than TSP...

I believe this would be called a Roth IRA.

 

[FlyingBeagle]

TSP refuses to send me a new web password. I have requested one atleast 5 times, and they keep telling me it is on its way. I do get mail from them, so I know it isn't a mailing problem. It is gettign to the point where I'm wondering if they are purposely blocking me from my account.

 

[MasterBates]

FB, shouldn't you update the "clinging to happy place"

Oh, and a wings request.

 

[MasterBates]

Plan.. Wait for ex wife to die..

Back up plan.. Make bargain with devil (take DH bonus)

 

[snake020]

TSP is not bad as long as you avoid the "G" Fund. But JOs should be maxing out their Roth IRA first.

 

[Flash]

TSP is a ripoff anyway. It would be worth it if we had "Fund Matching" but because we don't, you can easily find better investment options on the market... at varying degrees of risk, and even the low-risk ones give better performance than TSP

Don't complain about 'fund matching'. The reason you don't get it is because military retirement is probably the best pension plan still out there, I can't think of anything else that comes close (unless you are a former CEO or created Seinfield). We have our TSP's here matched but our pension doesn't even come to half of the military one.

 

[Flash]

Exactly Flash...I am not complaining that TSP isn't matched...The fact that we have a Pension AND a tax deferred retirement program is pretty awesome.

Just making sure, a couple guys at work were complaining about how mine was matched and theirs was not........they shut up after I explained to them the pension difference.

JO's rarely seem to realize just how much they are making compared to their civilian counterparts when you take into account the tax free allowances, free medical care, per diem, tax free, etc etc. I got my salary 'matched' when I left and make considerably less now with all the taxes and other things I pay for taken into account. The reserves help, but they will get their pound of flesh sooner or later.......

 

[insanebikerboy]

...free medical care....

One of the best parts in my opinion. The old lady had to go to the emergency room a few months ago....$10k, all paid for by Uncle Sam.

 

[Herc_Dude]

One of the best parts in my opinion. The old lady had to go to the emergency room a few months ago....$10k, all paid for by Uncle Sam.

Thats where I feel it most right now as well. Just got done having the kid, but during the pregnancy there were all kinds of extra things we got done that we prob would not have if we had to pay for it.

The kid's docs (civs) at NASCC hospital have been great so far.