This plan is a good example of how a retirement plan can be run at a low cost, however this plan is not all it is cracked up to be. It can be vastly improved without much of an increase in costs. I think State Teachers Retirement Systems should take a cue from the TSP - basically using the vast economies of scale of millions of workers with commonality to build a large asset base and lower costs. However, I believe this plan can be vastly improved upon. The education, website, and recordkeeping are horrible. If the TSP gave me one hour I could give them enough suggestions to make this plan the darling of all investment plans.
Scott Dauenhauer, CFP, MSFP
www.GovExec.com - Cost of managing TSP continues to shrink (9/19/05)