Readers' Comments
Total Comments: 11
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Rancor Erupts Over Adding REIT Fund to TSP
Total Comments: 11
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| Close | Change | YTD | |
| G | $12.6959 | +0.0013 | +3.39% |
| F | $11.9530 | -0.0247 | +0.19% |
| C | $9.2824 | -0.6039 | -43.95% |
| S | $10.1934 | -0.8828 | -48.49% |
| I | $12.0957 | -0.7697 | -51.15% |
| Close | Change | YTD | |
| L 2040 | $11.0060 | -0.6167 | -39.66% |
| L 2030 | $11.2839 | -0.5499 | -35.19% |
| L 2020 | $11.6920 | -0.4696 | -29.78% |
| L 2010 | $13.1320 | -0.2608 | -15.06% |
| L Income | $12.3301 | -0.1593 | -8.46% |
November 20, 2008
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TSP & Politicians
Army
Fri Jul 21, 2006 9:23 AM
Post Reply
Politicians need to keep their gubby hands out of TSP. This is not their perview and I can only imagine they are trying to curry political favor with a sponsor. TSP is working just fine but once the politicians become involved it will most likely begine to suffer. As the saying goes "If it ain't broke don't fix it." I will have to do my research and find out which politicians are in support of interfering with FRTIB and make sure I do not vote for them. I will be sure and provide this info to all my friends.
Re: TSP & Politicians
USDA Forest Service
Mon Jul 24, 2006 11:38 AM
Go ahead and conduct a random survey
Navy
Fri Jul 21, 2006 9:47 AM
Post Reply
Since it appears that many of the individuals involved in the adding of the REIT index fund to the TSP options can't agree, I say if you don't want to survey all the TSP participants, then do a sampling. Of course, the sampling should be a fair spread of demographics. Wouldn't be fair to sample all TSP investors with a salary of $80,000 and above would it? Don't forget the folks at the middle and bottom of the pay scales!
Constituents' Opinions on TSP Fund Options
U. S. Bureau of Reclamation
Fri Jul 21, 2006 10:11 AM
Post Reply
Do they (FRTIB, ETAC) have any idea how easy it is to add a survey option to the TSP homepage? (Assuming they really want to know what we think about adding REITs or other fund options to our retirement plan)
REIT Option
FDIC
Fri Jul 21, 2006 10:21 AM
Post Reply
I feel an REIT option in TSP is a mistake. If I want to invest in an REIT, I can certainly do it outside my federal 401(k)! Anything that is before Congress is, of course, being supported by PACs and other financially-influential parties and Congress' decision is made to curry favor with the PACs and their constituents, not those of us who have retirement funds at risk.
Neglected issue
dod
Fri Jul 21, 2006 11:31 AM
Post Reply
What isn't being talked about enough is the fact that a REIT fund is a sector fund as opposed to a core fund. Why is this important?
A sector fund is narrowly focused (on real estate only in this example) and therefore much more volatile than normal. Because of this it shouldn't be more than a small percentage of any given portfolio.
A core fund (such as C,S,I,F and G) is very broad and therefore much less volatile tha a sector fund. As such they are suitable for much larger percentages in any given portfolio.
The danger here is... Folks who don't understand the difference may put way too much of their portfolio in a volatile sector fund and expose their retirement savings to way more risk than is prudent.
'Speculative trading' is not an 'Investment' Strategy
DON
Mon Jul 24, 2006 12:10 PM
Post Reply
While I think a REIT component could provide periodic, excellent rates of return, I have to agree with the following excerpts:
“I thought it was premature to pick out a REIT index fund as the next instrument option for the TSP in the absence of an analytical comparison with other potential investment options."
"The NAREIT REIT index is not an accurate representation of real estate fund performance, and it pointed to more reliable measures, like the Dow Jones (DJ) Wilshire and Morgan Stanley REIT index."
Yes the TSP Board wasted millions on the computer system that now allows daily trades, but they have a fudicary responsibility to the participants that members of Congress don't have. My trust is with the Board - Congress should let them do their job.
It's not surprising given the size of the TSP nest egg that special interests are trying to get a piece of the pie. The Board should harden their hearts and focus on a reasonable portfolio of options that are diversified, broadly based, and have shown staying power over decades with an overall goal of consistent returns and low costs.
If "running out the clock" is the strategy that defeats the will of a minority of law makers bent on serving the real estate lobby - Then so be it.
WHy, WHY, Why???
DOD/USAF
Mon Jul 24, 2006 2:32 PM
Post Reply
REITs are a conservative, & useful, investment choice. Feds should have access to them in their TSPs!!! Put this excessive discussion, & energy, to work on other problems
Re: WHy, WHY, Why???
dod
Mon Jul 24, 2006 5:28 PM
A REIT is a sector fund, with exposure to only one narrowly focused area. Therefore, it is much riskier than a typical asset class based fund such as C,S or I (or large, small and international mutual funds and such outside the TSP plan).
These broad based funds are diversified across many different industries. Sector funds have all their eggs in one basket (in this case that basket is real estate).