In an article this week, FedSmith noted that the Thrift Savings Plan (TSP) is planning to set up a mutual fund window in 2022.
Many of the details are unknown at this point. We do know that TSP investors will reportedly be able to invest in about 5,000 mutual funds in addition to the funds that are currently available.
The TSP has been a very popular benefit for federal employees. The rates of return have been very good and the Federal Retirement Thrift Investment Board (FRTIB) has clearly had the interest of investors in mind when making changes and implementing the TSP.
Adding a mutual fund window to the TSP will allow more options for investors. It will also change the plan from one that is relatively easy to use and understand into a more complex system. It is also likely to increase expenses.
Do you support adding this option to the TSP? Will you use the option if it is made available? Do you think adding this option will provide better overall returns?
No doubt, these are the types of questions that need to be considered. No doubt also that the FRTIB will be considering these issues.
The survey is now closed. You can read the results in this article: FedSmith Readers Opposed to Adding Mutual Funds to the TSP