|
Same great TSP funds. More choice.
|
|
|
With new features coming this June to make your TSP experience even better, you may be wondering how changes could affect your retirement planning. One of the most important decisions you make on the road to building your retirement income is how you invest your savings—and we have great news.
The low-cost TSP funds you know and love will stay the same through this transition, and your TSP savings will remain invested in the TSP funds you’ve chosen, unless you request a change.
New option—In June, you’ll see a new investment option: a mutual fund window that lets you buy and sell mutual funds as part of your TSP portfolio.
 Low-cost TSP funds
You can choose from 5 individual TSP funds and 10 Lifecycle Funds (L Funds).
Individual funds
If you invest your TSP savings in our individual funds, you make your own decisions about the investment mix that supports your personal investment strategy. You can use a tool on our website to compare details about each individual fund.
|
|
L Funds
Each of the L Funds is a diversified mix of our five individual funds. They’re designed by investment professionals to let you invest all your TSP savings in a single L Fund and get the best expected return for the amount of expected risk appropriate for you. You choose your L Fund based on the year you expect to need your retirement income.
The target investment mix of each L Fund automatically adjusts over time, gradually shifting from higher to lower risk and reward until reaching its target date, when it becomes part of the L Income Fund. For example, in 2025, the L 2025 Fund will become part of the L Income Fund.
You can use a tool on our website to compare details about the investment mix of each L Fund.
|
|
Coming this June: the mutual fund window option
The mutual fund window is designed for TSP participants who are interested in greater investment flexibility. If your account meets certain eligibility criteria, you can choose to access a selection of more than 5,000 mutual funds. As with most mutual funds, this flexibility comes with fees:
-
$55 annual administrative fee to ensure that use of the mutual fund window does not indirectly increase TSP administrative expenses for TSP participants who choose not to use the mutual fund window
-
$95 annual maintenance fee
-
$28.75 per trade fee
-
Other fees and expenses specific to chosen mutual funds
If you choose to invest through the mutual fund window, your initial investment must be at least $10,000, and you may not invest more than 25% of your total account in the mutual fund window.
For more information about the mutual fund window before it becomes available in June, sign up to receive details from us by email.
|
|
|
|
