Thrift Savings Plan

Thrift Savings Plan (TSP)

Thrift Savings PlanAs a Federal Employee or in the Military you have the opportunity to invest in a Thrift Savings Plan (TSP).
A Thrift Savings Plan (TSP) is a retirement account that can only be set up for United States civil service employees as well as for members of the uniformed services. It is closely resembles both private sector 401k and Roth 401k plans. A Roth TSP was implemented in May 2012. A TSP is also open to employees covered under the older Civil Service Retirement System (CSRS)

A TSP account is limited to 10 separate TSP fund investments total. Some of the funds track individual market indexes directly, and others (‘lifecycle funds’) consist of stock/bond splits that are always changing as an investor ages. Anyone who does not actively manage their account will have 100% of their money put toward the ‘G’ fund.

What that means is you are not allowed to invest in any physical gold bullion or other types of precious metals via your TSP plan. You can’t even purchase mutual fund shares or stocks directly, that hold the stock of companies involved with gold mining (purchasing ‘paper gold’). Out of the possible retirement accounts options, a TSP is one of the most restrictive, and it provides you with the least access to precious metals.

Physical Gold Investing vs. Paper Gold Investing

Paper gold stocks are shares from companies involved in the mining, producing, and exploring for gold. Literally hundreds of them are out there for the choosing. Examples of the larger companies involved in this are major gold stock indices such as BUGS (HUI) and Gold Miners Index (GDX).

Gold Stocks are generally a bit riskier than owning your own physical gold. That’s because, as history bears out, gold stocks appreciate faster when spot gold prices are rising, and should the gold prices fall, these gold stocks will fall faster.

Gold stocks can be influenced by other types of risk as well, such as:

  1. Cost of Production Risk – This is the depreciation of mining equipment, increases in land values, and labor costs that can all have a negative impact on mining companies.

  2. Regulatory Risks – Exploration and mining companies can be subject to increases in taxes as well as regulations.

  3. Fiat Currency Risk – When selling securities such as gold mutual fund shares or gold stock, you receive your pay in a fiat currency. This means if there is a currency collapse, you’re left holding onto nothing but worthless paper.

  4. Management Risk – Many companies that have been over-leveraged and/or mismanaged can and will either declare bankruptcy fold up altogether.

Physical gold values have never gone as low as zero. Gold has maintained a solid value for thousands of years. When it comes to staying power, you’ll find that physical gold is a marathon runner.

Advantages of Rolling Over Your TSP Plan Onto a New Precious Metals IRA

If you have parted from your federal post, think about rolling over portions of your TSP funds to a special type of retirement account known as a ‘self-directed IRA‘. The benefit to rolling over the TSP Plan assets to this self-directed IRA is now you are able to control what designation your retirement funds carry, and you can open up brand new tax-free investments. An example would be ‘precious metals’ or a gold backed IRA.

In retirement plans that are employer-funded, like TSPs, the investment options you have are more limited in scope than with precious metals IRAs. Your options are not only limited with your Thrift Savings Plan, your decisions as to when you can change your portfolio will be restricted. When it comes to flexibility a self-directed IRA wins that battle undeniably.

Plan Type Sponsorship 2018 Contribution Limit Roth Option? Allow Gold Stocks? Allow Gold ETFs? Allow Gold Bullion
401(k) Private Employer $18,500 / $55,000 Yes Maybe Maybe No
Solo 401(k) Self-employed $18,500 / $55,000 Yes Yes Yes Yes
Keogh Plan Self-employed or Unincorporated Employer $55,000 No Maybe Maybe No
403(b) Government or Non-profit Employer $18,500 / $55,000 Yes Maybe Maybe No
457(b) Government or Tax-exempt Employer $18,500 / $55,000 Yes Maybe Maybe No
Simple IRA Private Employer $12,500 / $55,000 Yes Yes Yes Maybe
SEP IRA Business Owners & Self-employed $55,000 Yes Yes Yes Maybe
Profit Sharing Plan Private Employer $55,000 No Maybe No No
Money Purchase Plan Private Employer $55,000 No Maybe Maybe No
Annuity Individual None No Maybe Maybe No
ESOP Private Employer Varies Yes Maybe No No
SARSEP Private Employer $55,000 No Yes Yes Maybe
Self Directed IRA Individual $5,500 / $6,500 Yes Yes Yes Yes
Traditional IRA Individual $5,500 / $6,500 Yes Yes Yes No
Precious Metals IRA Individual $5,500 / $6,500 Yes Yes Yes Yes
Thrift Savings Plan (TSP) Government or Military $5,500 No No No No

Advantages of Dedicating 5% to 20% of Retirement Funds Toward Precious Metals

Investing in gold is the safest and simplest way of diversifying your personal retirement portfolio. Gold and other precious metals like Silver, Palladium, and Platinum, give you protection against the volatility of the stock market as well as inflation.

Gold can be a great hedge, and what’s more it also offers you lots of growth potential. Lots of investors buy gold specifically for this growth potential alone. A multitude of analysts are predicting that gold is going to continue to see gains in value far into the future.

The overall amount of the precious metals found in your retirement portfolio is going to depend on the retirement horizon and your own personal risk tolerance. Among the best ways of setting up what they call a ‘diversified portfolio’, and receive good tax benefits for your investments in precious metals, is opening up your own self-directed IRA.

Selecting a Gold IRA Company to Handle Your TSP Plan Rollover

We are most certainly an ‘independent’ website. We do not works for, or own any shares in any of the companies we review. We conduct impartial reviews of gold companies. Our reviews are totally customer based feedback along with ratings from authority websites live the BBB (Better Business Bureau), BCA (Business Consumer Alliance, and Trustlink.

Rank Company BBB
(Rating A+ to F)
(Rating AAA to F)
TrustLink Storage & Admin Fees
#1 Regal Assets
0 Complaints
0 Complaints
(587 reviews) $250 per year
#2 Capital Gold Group
1 Complaint
10 complaints
(142 reviews) $250 per year
#3 Rosland Capital
7 Complaints
7 Complaints
(21 reviews) $225 per year
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