In order to make the TSP more attractive and competitive with “like” institutional investment entities (i.e. TIAA CREF, Vanguard) I believe several indexed fund options should be added. These options would provide the opportunity for a more balanced portfolio. Once in place, their management would not adversely impact TSP operating cost. Here are the funds:
- T-Fund: Treasury Inflation Protected Securities (TIPS) Index Fund
- R-Fund: Real Estate Investment Trust (REIT) Index Fund
- E-Fund: Emerging Markets Index Fund
- P-Fund: Commodities Index Fund (precious metals, liquids, timber). Tis is a tough one, but doable.
Once established, market a walled-off commercial version of the TSP to conservative long-term high dollar investment entities such as Sovereign Wealth Funds, State & Local Government and Ivey Endowment Funds. This would create jobs and generate revenue for the federal government.