Is what you want, what you get?
The TSP is clearly the most controllable of all elements of your federal retirement, so, you may wish to consider how you are managing those dollars. I think it is important for any written opinion to periodically back up their opinion with statistics. I have, for as long as I have been a Federal Employee Benefits Planner, taken a highly conservative view of managing the TSP. Sometimes my opinion is considered and sometimes not. That is my point, you are the boss and the final decision maker. So, let’s see some facts.
Below when looking close at the TSP members ‘Rebalancing’ of funds, the numbers are dramatic when we see where everyone is putting their money. In my brief analysis, it seems to me that federal employees are tired of losses and are aware of the vulnerability of the TSP Funds and are beginning to think safety and protection of those hard earned and sacred principal dollars. In recent months, I have been hearing from employees “Accumulation while working and Preservation while in Retirement.”
Each is a rebalanced percentage by the TSP fund members, sensing the current economy and risk assessments, members will perform interfund transfers. It is interesting to note in
April 2016, members felt most comfortable with F Fund with 89% rebalancing, whereas, as of January 29, 2021, members felt most comfortable (re-allocating) with G Fund with 85% Rebalancing
Portfolio Allocation: TSP Folio Strategy
| TSP Fund | Description | Current % |
| G Fund | Government Securities Investment Fund | 85% |
| F Fund | Fixed Income Index Investment Fund | 3% |
| C Fund | Common Stock Index Investment Fund | 8% |
| S Fund | Small Cap Stock Index Investment Fund | 4% |
| I Fund | International Stock Index Investment Fund | 0% |
Source: https://www.tspfolio.com/allocation The portfolio was last rebalanced on 1/29/2021.
At the end of the day, or more importantly, at the end of your career, you and no one else will feel the effects of whether your TSP has been managed well or not, only you and your family. All your buddies in the next cubical and locker rooms will not make up for any losses but will be happy to take credit for any gains.
Here is a secret; contribute as much as you can. Watch your TSP account daily and move to the Fund that will do you the best in gain or preservation. Remember a 15% loss takes 21% to simply break even. Why not, if you gain 21%, start from a no loss position. It works for those TSP Millionaires.
george@federalbenefitadvisory.com
