Posted on Sep 10, 2016
What is the most beneficial "fund" of the TSP, saying I stay in for 20?
9.53K
25
13
3
3
0
I am new to the whole system and inside of my packet was a sheet indicating several different funds and recommended percentages for each based on when you will need the retirement funding back. Has anyone been successful using anything other than the "G Fund"? Being a new TSP contributor, I want to ensure that I am doing everything I can to prepare myself for financial security in the future.
TSP
Retirement
Finance
Money
Edited >1 y ago
Posted >1 y ago
Responses: 7
5
5
0
4
4
0
I always tell new guys before you do anything find out what your risk factor is and go from there. G fund is the safest then the F, then you have most risk in the C,S and I. I would not recommend the life style ones as you don;t control your $$. Baby steps- and ensure you are getting your self paid first as much as you can sock away. Read and educate yourself.
(4)
(0)
SGT(P) (Join to see)
Thank you sir. I have been reading up on them and I am currently just holding it all back into the G fund until I determine the best route to take.
(1)
(0)
Maj Marty Hogan
SGT(P) (Join to see) - If you ever need anything- not a financial advisory, but have been in the TSP since 1988. I tended to be much more aggressive early in my 20s and 30s and now that I am in my 50s I have hedged about 40% into the G. My focus now is utilizing my catchup to build Roth wealth in the next few years. Just drop me a message and will see how I can help.
(0)
(0)
MSgt John McGowan
PFC. It also depends on the type person you are. The most aggressive plan is usually the most likely to loose money but can also make more money. Now I am the type person who doesn't like to gamble when it comes to investments. So I go with the most safe. But that's me, others may go wide open. It's what you can live with.
(0)
(0)
I have done an uncomfortable amount of research on TSP. If you are staying in for 20, I recommend you stick with the current plan and stay away from the new TSP system. Do not OPT in. If you plan on leaving before 20, you should definitely get into the new system now! There is a 10% loss of pension a year at 20 and 15% loss at 30 between the two if you plan on retiring.
Now, if we are talking funds, the 2050 Lifestyle fund is doing well and is a pretty safe bet. However, I have put all my funds 50/50 between the S and C fund. You can see upwards of a 30% return on these funds, but you can also see major losses. However, over a 10 year period these funds have had a positive overall return of 8% - 10%. Not bad if you consider 2008 was a bombshell and 2013 was an aftershock.
I am putting 45% of my base pay into ROTH TSP* and plan on upping that to 65% once I am out of debt. Maxing out contributions ($18,000 a year or $1,500 a month) for 20 years can earn you $2M if the market is decent. If you max out and serve for 30 years and don't touch it until you're 69.5 and the market averages out at 10%, you are looking at $22M. Realistically, if you're making decent contributions, you will have a great nest egg waiting for you upon retirement.
*Since I am in a lower tax bracket, it is better for me to contribute 100% into ROTH TSP than Traditional as I am being taxes less now than I would be as say, an O4.
Again, if you do not plan on retiring, switch over to the new system in 2017. A free 5% "pay raise" is awesome! You won't have to worry about the 10-15% loss of pension if you don't retire.
Now, if we are talking funds, the 2050 Lifestyle fund is doing well and is a pretty safe bet. However, I have put all my funds 50/50 between the S and C fund. You can see upwards of a 30% return on these funds, but you can also see major losses. However, over a 10 year period these funds have had a positive overall return of 8% - 10%. Not bad if you consider 2008 was a bombshell and 2013 was an aftershock.
I am putting 45% of my base pay into ROTH TSP* and plan on upping that to 65% once I am out of debt. Maxing out contributions ($18,000 a year or $1,500 a month) for 20 years can earn you $2M if the market is decent. If you max out and serve for 30 years and don't touch it until you're 69.5 and the market averages out at 10%, you are looking at $22M. Realistically, if you're making decent contributions, you will have a great nest egg waiting for you upon retirement.
*Since I am in a lower tax bracket, it is better for me to contribute 100% into ROTH TSP than Traditional as I am being taxes less now than I would be as say, an O4.
Again, if you do not plan on retiring, switch over to the new system in 2017. A free 5% "pay raise" is awesome! You won't have to worry about the 10-15% loss of pension if you don't retire.
(3)
(0)
MSgt John McGowan
PO2. 401's and TSP's or fairly new. I know I wasn't offered one early in my career as in my after military life. So I only had a few years with 401, not nearly enough to build a real big 401. I have often wondered how these plans are working out that figures millions in returns, I retired again 20 years ago so I am out of touch.
(0)
(0)
Read This Next
-
Ask questionGet expert advice and
tips for your questions. -
Post updatePost pictures, personal updates, plans, or anything you like!
Continue with Facebook 
Continue with Google