How do you manage your Thrift Savings Plan?

2019-02-02T21:08:36-05:00

Each fund is managed and diversified differently. My distribution puts money into all funds at varying amounts. Anyone found any other great ways to spread their contributions out?

Response by CW2 Private RallyPoint Member made Feb 2 at 2019 9:42 PM

2019-02-02T21:42:27-05:00

MSgt Private RallyPoint Member Okay, so I’m gonna out myself, but my brother in law is a financial advisor and as such, advises me on what he THINKS is the best option. At the end of the day (and this is something that he echoes) is that you need to diversify. Wish I could help you more, but I’m not the Wolf of Wall Street.

Response by CW5 Jack Cardwell made Feb 2 at 2019 9:53 PM

2019-02-02T21:53:19-05:00

That's what I was doing but since retirement moving towards safer funds.

Response by Sgt Private RallyPoint Member made Feb 2 at 2019 11:48 PM

2019-02-02T23:48:04-05:00

MSgt Private RallyPoint Member As mentioned by CW2 Private RallyPoint Member, you should be diversified. Study and become a knowledgeable investor. There are excellent websites that you can go to in order to become a better investor. The Vanguard questionnaire will help you determine what your asset allocation should be. Vanguard also has other great resources. The second link to Investor.Gov will provide you with investing basics.

After you have completed the questionnaire, study your Thrift Savings Plan investment choices to determine the best choices. Look at the 10 year and lifetime returns, level of risk, and the fee structure when making your choices.

Have money outside of your thrift plan to cover emergencies, and if you can, put additional money in Roth IRAs.

Keep track of your investments, and reallocate at least once a year, if your asset allocation has changed from your target allocation. As you get older, you will want to become more conservative with your investments. Doing you rhomework will pay big dividends down the road. Good luck.

https://personal.vanguard.com/us/FundsInvQuestionnaire

https://www.investor.gov/

Vanguard - Determine your asset allocation

Our investor questionnaire can help you balance your investment portfolio between stocks, bonds, and cash.

Response by LTC Steve Mannell made Feb 3 at 2019 6:37 AM

2019-02-03T06:37:20-05:00

You're doing the right thing. Remember, TSP is for retirement. For many of us, that's a long way off. For some, it us now. Goals, time horizon, other assets and income, personal risk tolerance and other considerations will affect how you should allocate your TSP assets. And, while tax advantaged, government matched retirement savings vehicles are very important, don't forget to also set aside money for other goals and emergencies.

Response by Lt Col Jim Coe made Feb 3 at 2019 8:32 AM

2019-02-03T08:32:35-05:00

Consider contacting Edelman Financial Engines. They will review your TSP choices and work to understand your goals and risk comfort level. They will recommend a distribution of funds in your TSP. Sometimes this service is free to military members.

Response by CAPT Kevin B. made Feb 3 at 2019 10:19 AM

2019-02-03T10:19:10-05:00

TSP has its "Horizon" options in which your age determines the mix and match. Stuff becomes more conservative over time. That said, don't forget the end game. Consider rolling it out to commercial management at 59 1/2. Same risk and more earnings because the limited mix under TSP goes against thousands of other options. Rollover has netted at least 2% more vs. staying in.

Response by MAJ Raúl Rovira made Feb 3 at 2019 2:59 PM

2019-02-03T14:59:49-05:00

During my time in the Army and 10 years contributing to the TSP, I chouse for diversification on the 5 funds. The focus was on growth.

When I was 8 months from retirements, my financial advisor advised me to move everything to the G fund in preparation for retirement to preserve the value for the TSP. Just in case the market does something unwanted. After retirement, we transferred the TSP and did something else with it as a retirement account.

The advice to move to the G fund before retirement was spot on. This is where fiduciary financial advisors are important.

A side note, a friend of mine was not so lucky. He kept everything diversified up until retirement and lost 30% during a market drop that happened as he was retiring.

Timing is important.

Good luck.

Response by Lt Col Scott Shuttleworth made Feb 7 at 2019 5:55 PM

2019-02-07T17:55:13-05:00

An active duty guy that retired and became an investment counselor advised me to put my contributions in 40/30/30 in various funds. 40 in the I fund, 30 in the S fund, and 30 in the C fund. Never touched it and let ride. Done pretty good for me over the years.