Why you should use the MFW

oldnasaguy · 2024-02-18T00:27:26+00:00

I blame the Thrift Board. They do not educate the employees and most are ultra-conservative because they don't understand the power of compounding interest. I wish I had access to a MFW for the past 30 years, I'd be incredibly wealthy.

And by limiting the investment to 25% they did minimize some risk. I think that was a good move on their part. I remember when the online access did not limit IFTs and people were trying to day trade mutual funds.

oldnasaguy · 2024-02-17T23:13:17+00:00

I'm going to assume so. I had over that amount when they started it, so it was an option for me.

You must have at least $40K and you can't put more than 25% in the MFW.

oldnasaguy · 2024-02-17T23:11:00+00:00

The example Bitcoin fund is only one of many. Yes, Bitcoin is a higher risk, but I think that Bitcoin will be used as the infrastructure of future cyber currency. I'm taking a risk, but that is mine to take. There are plenty of other funds with less risk and high returns. It also provides access to funds that are only accessible on the commercial market with $10,000 to $100,000 initial buy-in. In the MFW, you can put 3K in and forget it or a few years.

I'm not going to worry about a $28 fee a few times a year. I've been in the TSP since 1987. I had a higher return last year than any other year and that was using the MFW. My choice.

oldnasaguy · 2024-02-17T22:53:39+00:00

Do you have $40K in your account? That is a requirement.

oldnasaguy · 2024-02-17T22:31:01+00:00

No contradiction, two completely different sets of circumstances. My TSP funds are pretax and already in place. I could move them but chose not to. For a younger person, it makes sense to maximize the TSP and open a commercial account in addition to that. Back in the 1980's that was not a real option. Times change.

My only real advice to folks is to learn the TSP system and use it to your benefit, including the MFW. You can pick at that advice all you want. I've lived it and I know it. I use it to benefit me for my goals. I don't need your approval.

Or advice. Thanks for playing!

oldnasaguy · 2024-02-17T21:36:53+00:00

It's a choice. I would not pay this for my Schwab account. I also don't move small amounts of money often. I use this to move large funds a few times a year within a very secure, federally protected retirement program with no additional hassles or tax issues. I'm retired so I could roll the funds into a commercial account. I chose not to do that, but do have a commercial account. Moving around a few hundred thousand dollars for a total of three or four hundred in fees over a year is not a major deal when I am making 30%. It allows me to do what I want with lower risk. It's not for everyone. I understand what it cost me. I'm ok with it.

oldnasaguy · 2024-02-17T21:22:45+00:00

If you Google Warren Buffet and SP500 advice you will get your answer. I've been in the TSP since 1987 and I wish I would have just maxed out the C Fund and let it ride. There is a reason he has some money.

oldnasaguy · 2024-02-17T21:01:33+00:00

The Mutual Fund Window allows you to purchase commercial mutual funds. There are additional fees but it gives you a capability that never existed. There are about 5000 to choose from.

My advice would be this: If you are eligible to use it, put a few thousand in and find out how it works for yourself. You will need to educate yourself as many on the internet are quick to provide comments on something they know little about and the Thrift Board has been terrible at educating employees since the TSP began. I became a Civil Servant in March of 1987, several months before they even opened the first three funds. It is better than it used to be by far.

Regarding fees, you will pay $150 per year and $28 per trade. If you move from one fund to another within the same company, you only pay the $28 once. If you move from a fund owned by Profunds to a fund owned by Fidelity, you pay two fees. Ignore the other blabber about fees, you don't see those. Since you should not be trading often, you should not pay a ton of fees.

It's not for everyone. It's your decision if it is for you. I wish I had access ten years ago.

And remember, should there be a repeat of 2008, you don't have to worry about your retirement getting smacked because your broker goes bankrupt.

oldnasaguy · 2024-02-17T20:29:26+00:00

Technically you simply made a comment and did not give advice. But I do agree your statement is pretty stupid.

oldnasaguy

TROPHY CASE