No. of Recommendations: 1
Hi Mike,

<<<Anyone think that a TSP is better than a Vanguard acct?>>>

I think it depends on what your needs are. There are a couple of advantages that I can think of:

1. The G fund is unique to the TSP, the principal is risk free (safer than bonds) and it provides a rate of return equal to very short term securities. IIRC, the return in the last decade has been around 6 - 7 %

2. The TSP's expenses ratios are actually better (lower) than Vanguard's

3. The minimum age to withdrawal money from a 401k is 55 vs. 59.5 for an IRA

How ever, the selection of funds is small and the withdrawal methods from the TSP may be more restrictive than from a Vanguard IRA (I am still researching this issue).

Just some points to ponder ...


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