Skip to main content

Posts

Showing posts with the label planyourfederalbenefits

Investment Options Available with TSP (Thrift Savings Plan)

The Investment Options-How should I invest my TSP? This is a question that we get a lot but unfortunately there is no cookie cutter answer for this one. It depends on your risk tolerance and how many more years until you retire. Let me give you a couple of examples. A 26-year old isn’t going to retire for another 30-40 years so he has the ability to invest somewhat aggressively because we know that the market will go up over time. On the other end of the spectrum, if someone is 65 and wants to retire next year, they wouldn’t know where the market will go in the short term and couldn’t afford much volatility. The factors directly affect our investment choices. There are 6 investment options in the TSP. See Below: G Fund- This fund invests in short-term U.S. Treasuries which have next to no risk. Because there is no risk, there returns is relatively small. Generally, this fund doesn’t quite keep up with inflation, but it is better than parking your money in a savings account...