Thursday, July 17, 2008

What is the goal for your TSP managers?

You think it is to maximize returns, don't you?

Silly taxpaying Serf - no. The people you elect to Congress think that your retirement is just another toy for their house Diversity Bullies; of course.
A House hearing Thursday on creating opportunities for women and minorities to play a larger role in managing the Thrift Savings Plan turned into a debate over whether the plan should shift from its current cautious style to a more ambitious, riskier, approach.

House Oversight and Government Reform Federal Workforce Subcommittee Chairman Danny K. Davis, D-Ill., said the TSP's investment approach makes it harder for the plan to work with minority- and women-owned financial management firms.

"The executive director of the Federal Retirement Thrift Investment Board revealed that there are minority firms with talent in long-term financial management," Davis said. "However, most of those firms gravitate toward the active fund management business, which is not an investment strategy of the TSP. Research by the TSP indicates that there may be only one minority-owned firm that deals with passive management of index funds."

But Gregory Long, executive director of the board, said the law has dictated the TSP's focus on funds that track the performance of the stock market rather than the use of active managers to make trades aimed at outperforming the market. The purpose has been to minimize risks and fees for users and avoid concerns over political manipulation of large pools of funds. Long said the conference report on the creation of the TSP specifically noted that active fund management could lead to lawmakers or interest groups pressuring fund fiduciaries to create investment options that would support specific industries.
Churn 'em and burn 'em - and get work for those who look like me and send me money. Typical Chicago politician.

Amazing. You voted for him. Wallow in it.

Hat tip Mike.

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