Waking up and smelling the coffee too late?

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board Waking up and smelling the coffee too late?

  • This topic has 2 replies, 2 voices, and was last updated 4 years, 5 months ago by Not much of a risk taker.
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    Not much of a risk taker

    Hi, this is the first time I have seen your posts and message board. Wish I had been aware sooner! Husband and I are both federal employees in CSRS and have been doing max TSP contributions each year and catch-ups since turning 50+. We have been low risk takers and have focused on the G and F funds and now, I’m thinking we have been way too conservative. To say we are not up-to-speed on investment strategies would be an understatement. We are thinking of retiring in 15-18 months and would like to maximize our TSPs. We are lucky enough that our CSRS pensions and Social Security will allow us to keep our TSPs untouched for a long while, although my husband will have to do a RMD upon retiring. What would be smart strategies for the time remaining at work?

    TS Paul

    If you have a medium to long term time horizon before you will have to withdraw from the Thrift Savings Plan, there is no reason to be in the G or F Funds at this stage in the economic cycle. I can’t give individual advice, but speaking generally I believe that unless it is money which you need in the next two years you will be better off staying invested in the stock funds indicated by where we are in the economic/business cycle.

    Even in the worst case scenario – even if the market crashes and we go into a recession – the odds are overwhelmingly in the favor of the S and C Funds outperforming the F and G Funds over any period greater than two years.

    The TSP Allocation Guide www.TSPallocation.com

    Not much of a risk taker

    Thank you for replying to my post. I spent time on the TSP website today looking at all of the information on the different funds and their performance over time. We will have to change our contribution allocations and do interfund transfers. I appreciate your perspective!

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