Anyone who’s been reading my blog knows that I’ve recently started a new full time job. I now work as an inpatient night-shift staff pharmacist at the Carl T. Hayden, Veterans Affairs Medical Center, here in Phoenix, Arizona. It’s a great opportunity for me and I consider it a privilege to work here.
Since I now work for the Federal government, I’m eligible to participate in their employee retirement savings plan, the Thrift Savings Plan (TSP). The TSP is similar to other defined contribution retirement plans available to non- Federal workers, such as 401(k), 403(b), and 457(b) savings plans. Of course, I signed up immediately.
I’m a big believer of diversified passive investing using broad-based indexed funds with LOW costs. As such, and except for a recent period of successful market-timing, I’ve kept my entire retirement fund portfolio fully invested in indexed funds offered through The Vanguard Group because of their “mutual” status, expertise, and low, low costs.
So, imagine how satisfying it is working for an employer who offers only diversified indexed mutual fund investments and indexed Lifecycle funds in its retirement savings plan, and at tremendously low expenses that rival even The Vanguard Group.
Using the same strategy that I’ve followed with the retirement portion of my portfolio, I’m now investing all of my pretax earnings contributions and employer matching contributions into the TSP plan’s Lifecycle 2030 Fund.
I’ve updated my portfolio to reflect my participation in the TSP.
Comments 7
Interesting, I haven’t heard of this plan before. Something new for me to research! 457b is the normal government plan, correct?
Posted 08 May 2009 at 6:26 am ¶The TSP is the Federal government plan.
As far as I’m aware, a 457(b) plan is a supplemental plan offered to State or Municipal government workers, and other non-profits.
Last I heard, postal employees use a 357(b) plan. Just kidding.. a little postal humor.
Posted 08 May 2009 at 6:44 am ¶LOL, wow…
Posted 08 May 2009 at 7:23 am ¶I think I may have used the wrong terminology when I wrote “deferred compensation”, in describing 401k, 403b and 457 plans. A better choice would be “defined contribution” plans. I’ve corrected my post.
My apologies.
Posted 12 May 2009 at 12:19 am ¶Here’s a good link for Federal employees to bookmark for future reference, from the Office of Personnel Management.
Retirement Information and Services
Posted 12 May 2009 at 4:15 pm ¶I think the link may be broken.
Posted 12 May 2009 at 6:00 pm ¶Man.. I’m having a hard time with this post. Linked now fixed.
Posted 12 May 2009 at 6:34 pm ¶Post a Comment