FERS vs CSRS TSP strategies?

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board FERS vs CSRS TSP strategies?

This topic contains 1 reply, has 2 voices, and was last updated by  TS Paul 4 years, 2 months ago.

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  • #15936

    macadoo
    Participant

    Hi -I’m new to this site and have enjoyed reading your articles. I’m retired (CSRS) but still maintain my TSP account due to low expenses. I have always wondered if CSRS employees/retirees should have a more aggressive approach to TSP investing because of their more substantial pensions. The TSP makes up a huge part of a FERS employee’s retirement plan, therefore, may lead to a more cautious strategy by many.

    Your business cycle based strategy has reinforced my opinion that I have adopted a too conservative approach to my own investment. Does your strategy trump any differences between the retirement plans? Do you make any concessions/allowances for some diversification in the five funds for retirees/near retirees?

    #15992

    TS Paul
    Keymaster

    I wrote a bit in the FAQs about my views on retirees/near retirees (http://www.tspallocation.com/faq/#number4)

    I don’t see any real difference in investing strategies between CSRS and FERS participants. There is risk in all of the Thrift Savings Plan funds with the exception of the TSP G Fund, so if I were trying to be more conservative I suppose I would park some money in that. I don’t see my approach as being riskier than a more “diversified” bucket of the other TSP funds – it may be more volatile over a short or medium term period of time, but in the long term it will likely generate higher returns.

    The TSP Allocation Guide www.TSPallocation.com

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