Once again, the Thrift Savings Plan proves it's not the cheapest game in town. The TSP increased fees in 2023 when most custodians have been decreasing fees. What did fees go up to? If you need help with your retirement planning and would like to schedule an introductory call you can do so here. My website ...(read more)
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TSP Expenses Set to Increase in 2023 For federal employees and members of the uniformed services, the Thrift Savings Plan (TSP) has long been a popular retirement savings vehicle. With its low fees and tax advantages, the TSP has often been regarded as one of the best options for federal workers to build a secure future. However, employees should be aware that starting in 2023, TSP expenses are set to increase. The TSP, administered by the Federal Retirement Thrift Investment Board (FRTIB), offers several investment options such as the G Fund, F Fund, C Fund, S Fund, and I Fund. These funds allow employees to diversify their investments and take advantage of market growth. Currently, TSP expenses are incredibly low, with fees lower than those typically found in private sector retirement plans. However, the upcoming expense increase will mark a significant change for TSP participants. Starting in 2023, the FRTIB has announced that it will be changing the way TSP expenses are calculated. Currently, expenses are calculated as a percentage of the total assets invested in the fund. This percentage is then deducted from the participant's account on a daily basis. However, the new expense calculation method will take into account the total balance of the TSP account at the end of each month. This means that the expenses will be calculated based on the average of the monthly account balances rather than the total invested assets. This change in calculation method could potentially lead to higher expenses for TSP participants. As the average monthly account balance increases, so will the expenses deducted from the account. While it is difficult to anticipate the exact impact of this change, a mere increase in expenses could eat into an individual's retirement savings over time. The FRTIB has stated that the change in calculation method is aimed at aligning TSP expenses with industry best practices. They argue that the current method is outdated and does not accurately reflect the costs associated with managing the TSP. By switching to an average monthly account balance calculation, the FRTIB believes they will be able to provide more accurate expense figures while still keeping expenses low compared to private sector retirement plans. For TSP participants, it is essential to stay informed about this upcoming change in expenses. As January 2023 approaches, it is advisable to review your investment options and consider any potential impact on your retirement savings. While the exact increase in expenses remains uncertain, it is prudent to plan accordingly and seek advice from financial professionals if needed. In conclusion, the TSP has long been a preferred retirement savings option for federal employees and members of the uniformed services. The low fees and tax advantages have made it an attractive choice for securing a stable future. However, starting in 2023, TSP expenses are set to increase as a result of a change in how expenses are calculated. It is crucial for participants to be aware of this change and adjust their retirement plans accordingly. By staying informed and seeking professional advice, TSP participants can navigate this adjustment and continue on their path towards a secure retirement. https://inflationprotection.org/2023-sees-upward-trend-in-tsp-expenses/?feed_id=127114&_unique_id=64d9412bf2658 #Inflation #Retirement #GoldIRA #Wealth #Investing #adviserforfederalemployees #advisorforfederalemployees #advisorforfederalretirement #federalemployeeretireearly #federalretirement #feeonlyadvisorforfederalemployees #fersretirement #financialplanningforfederalemployees #flatfeeadvisor #thriftsavingsplanexpenses #tspcfund #tspexpenses #tspfund2023 #tspgfund #tspifund #tspinvesting2023 #tspsfund #ThriftSavingsPlan #adviserforfederalemployees #advisorforfederalemployees #advisorforfederalretirement #federalemployeeretireearly #federalretirement #feeonlyadvisorforfederalemployees #fersretirement #financialplanningforfederalemployees #flatfeeadvisor #thriftsavingsplanexpenses #tspcfund #tspexpenses #tspfund2023 #tspgfund #tspifund #tspinvesting2023 #tspsfund
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