TSP ???

scott.henry · 01-15-2018, 09:18 AM

The sooner the better. Time is money. When I was in, I had 10% of my base pay and 10% of my bonuses going to TSP. As far as risk vs. reward, the G fund is the least risky but has the lowest return, by far. The C or S funds will offer you greater returns but with more risk. You can also choose to invest in a Lifecycle fund that adjusts your portfolio as you age to move your assets into more secure investments. All you need to do is pick the year you plan to retire. That is a pretty standard investment strategy. Go for the bigger returns while you are young and move into more secure investments as you age. You have the advantage of having the TSP available right away. I was already in for 6 years by the time it started so the time I had to contribute was limited. When you get out you can't contribute any more $$ to the TSP, but you can move it to another 401K type plan or you can let it ride in the TSP. There are a bunch of things to consider when making that decision, but I will say that just based on the fees associated with my current 401K, it was best to leave my $$ in the TSP.

01-15-2018, 09:18 AM	#3
scott.henry Member Join Date: Jun 2017 Location: Chillicothe, OH Posts: 52 Rep Power: 0	The sooner the better. Time is money. When I was in, I had 10% of my base pay and 10% of my bonuses going to TSP. As far as risk vs. reward, the G fund is the least risky but has the lowest return, by far. The C or S funds will offer you greater returns but with more risk. You can also choose to invest in a Lifecycle fund that adjusts your portfolio as you age to move your assets into more secure investments. All you need to do is pick the year you plan to retire. That is a pretty standard investment strategy. Go for the bigger returns while you are young and move into more secure investments as you age. You have the advantage of having the TSP available right away. I was already in for 6 years by the time it started so the time I had to contribute was limited. When you get out you can't contribute any more $$ to the TSP, but you can move it to another 401K type plan or you can let it ride in the TSP. There are a bunch of things to consider when making that decision, but I will say that just based on the fees associated with my current 401K, it was best to leave my $$ in the TSP.