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Administered by the Federal Retirement Thrift Investment Board, this defined contribution plan for federal employees has roughly 4,614,874 participants, and over $358 billion in assets under management. Ask your TSP questions and post related topics here.

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GWPDA  
#1 Posted : Saturday, May 9, 2020 9:36:04 AM(UTC)
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https://www.washingtonpo...-73b93422d691_story.html


He is replacing the TSP Boardmembers with political appointees who will determine how and where your TSP funds can be invested according to political opinion.
Roger.D  
#2 Posted : Saturday, May 9, 2020 6:02:53 PM(UTC)
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Originally Posted by: GWPDA Go to Quoted Post
https://www.washingtonpost.com/politics/trump-eyes-federal-retirement-plan-investments-as-part-of-showdown-with-china-over-coronavirus/2020/05/08/9f9b2058-8fb2-11ea-a9c0-73b93422d691_story.html


He is replacing the TSP Boardmembers with political appointees who will determine how and where your TSP funds can be invested according to political opinion.


Quote:

Trump on Monday nominated three members to replace the majority on the Federal Retirement Thrift Investment Board, made up of five investment experts who oversee the retirement plan. All of their four-year terms have expired, and Senate Majority Leader Mitch McConnell (R-Ky.) and House Speaker Nancy Pelosi (D-Calif.) have not replaced those serving in the two seats they control.


So board members terms are up. And POTUS is responsible for nominating some of the members. The problem is what?
GWPDA  
#3 Posted : Saturday, May 9, 2020 8:02:24 PM(UTC)
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The problem is that the TSP's investments of federal employees' funds will be based on transient political interests rather than financial responsibility toward the investors. Read the article to note that the objective is to prevent the TSP from offering a particular fund which includes Chinese resources. Now - imagine if you were working for, say GM and had a 401K account. And GM determined that you were only able to invest your money in a way they permitted.

This is the plan. Like it? Is it your money?

Edited by user Saturday, May 9, 2020 8:02:54 PM(UTC)  | Reason: Not specified

Roger.D  
#4 Posted : Sunday, May 10, 2020 12:58:56 PM(UTC)
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It's difficult to find who nominated the current BOG of the TSP. It looks like all are Obama nominees. Which means Obama fired all that were nominated by Bush. Who likely fired all that were nominated by Clinton..........

I don't believe in investing in Chinese companies. So I am for the current bipartisan initiative to exclude the TSP from investing in China. (Sens. Marco Rubio, R-Fla., and Jeanne Shaheen, D-N.H)

Looking at the current I fund (tracks the MSCI EAFE) and the proposed fund (MSCI ACWI ex U.S.), the rate of return difference is negligible.

Figures taken from Yahoo Finance iShares ETF. Figures are slightly off of the TSP funds. But should give a reasonable representation.

MSCI EAFE
YTD........-18.53%
1-Month......5.82%
3-Month....-16.17%
1-Year.....-12.47%
3-Year......-1.01%
5-Year......-0.32%
10-Year......3.45%


MSCI ACWI ex U.S.
YTD.......-18.46%
1-Month.....6.37%
3-Month...-15.58%
1-Year....-12.95%
3-Year.....-0.79%
5-Year.....-0.46%
10-Year.....2.60%

Compared to the S&P 500

YTD-2.31%
1-Month......14.25%
3-Month......-4.47%
1-Year........7.07%
3-Year.......13.65%
5-Year.......12.14%
10-Year......13.74%

I also don't feel like investing in a stock fund that historically has a worse rate of return than other stock funds I have access to. So I have never invested in international funds.

If you like to loose money, it's yours to loose.
TheRealOrange  
#5 Posted : Monday, May 11, 2020 3:59:22 AM(UTC)
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Originally Posted by: GWPDA Go to Quoted Post
The problem is that the TSP's investments of federal employees' funds will be based on transient political interests rather than financial responsibility toward the investors. Read the article to note that the objective is to prevent the TSP from offering a particular fund which includes Chinese resources. Now - imagine if you were working for, say GM and had a 401K account. And GM determined that you were only able to invest your money in a way they permitted.

This is the plan. Like it? Is it your money?

Actually, by federal law GM (any company) is required to select the investments in a company-sponsored plan; i.e., according to federal law, employers (known as "plan sponsors") are responsible for picking the 401k plan funds. That decision must be made in the best interests of the plan and its participants, just like the TSP, but it is still an employer responsibility. The employer generally chooses a "plan provider" (Fidelity, Vanguard, T Rowe Price, etc.) to administer and maintain the 401k plan, and then the employer decides which of the funds offered by the provider to include in its 401k-plan offering. In your scenario, a company absolutely could avoid making investments in Chinese resources, assuming the provider's funds could be structured that way.
frankgonzalez  
#6 Posted : Monday, May 11, 2020 4:54:58 AM(UTC)
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Originally Posted by: Roger.D Go to Quoted Post
It's difficult to find who nominated the current BOG of the TSP. It looks like all are Obama nominees. Which means Obama fired all that were nominated by Bush. Who likely fired all that were nominated by Clinton........
Misleading. No-one was fired. Their terms expired and new people were nominated and appointed to the vacancies. Fired implies they were removed for cause.

You should have voted Cthulu...the greatest of all Evils
thanks 1 user thanked frankgonzalez for this useful post.
Martinr4071 on 5/19/2020(UTC)
Roger.D  
#7 Posted : Monday, May 11, 2020 6:04:14 AM(UTC)
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Originally Posted by: frankgonzalez Go to Quoted Post
Originally Posted by: Roger.D Go to Quoted Post
It's difficult to find who nominated the current BOG of the TSP. It looks like all are Obama nominees. Which means Obama fired all that were nominated by Bush. Who likely fired all that were nominated by Clinton........
Misleading. No-one was fired. Their terms expired and new people were nominated and appointed to the vacancies. Fired implies they were removed for cause.



"Replacing" as the OP said, term expired, contract not renewed, your services are no longer required, asked to resign: Call it what you want, you're fired.
Polar Bear  
#8 Posted : Monday, May 11, 2020 7:22:14 AM(UTC)
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not to belittle the point, but EVERY board organized in this manner is under political control.....

I understand if you don't like the current person at the head of that hierarchy...but that's how it's been. Vote to change it.
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