What's the most aggressive TSP fund?
The conservative funds are the G and F funds and the aggressive funds are the C, S, and I funds.
Best Funds for TSP Performance in 2023
Over the last 12 months, the C Fund is up 19.54%, the I Fund is up 19.08%, and the S Fund is up 15.24%. The most aggressive Lifecycle Funds (L Funds) were up 14.6% (the L 2055, 2060, and 2065 Funds) so far this year.
By this measure, the I Fund is the riskiest, with a maximum drawdown of -60.89%, which occurred during the 2008-2009 global financial crisis.
The C Fund has grown 7.49% in 2024, marking the best performance among the TSP's core funds.
First of all, you have to contribute as much as you can afford and at a minimum, the 5% employee contribution where you get the 5% match from the government. And the other side of the sword is to invest as aggressively as you can tolerate.
As of year-end 2023 just under 117,000 TSP investors had $1 million or more in their accounts, an increase of some 40,000 during the year, another impact of the rebound in stock-based investment funds during the year making up for their losses of 2022.
What is the safest TSP fund? The G fund is generally the safest option as it invests in government securities. Although you won't lose money investing in this fund, your rate of return will be low. This may be a good option if you are close to retirement.
Once you invest 5% in a TSP, Ramsey advises you to switch to a Roth IRA. His reason here is simple: A Roth IRA has more investment choices than a TSP. Ramsey recommends investing the remaining 10% of your income in a Roth IRA. But he knows this isn't possible for everyone.
The C Fund is moderately volatile and is subject to market risk as the price of stocks in the S&P 500 Index rise and fall. Further, you are exposed to inflation risk if your C Fund investment does not grow enough to offset inflation.
Fidelity recommends age-based milestones between ages 30 to 67. Based on these guidelines, you should aim to save 1x your income by age 30, 3x by age 40, 6x by 50, 8x by 60, and 10x by age 67. However, these milestones may vary depending on the age when you plan to retire and the desired lifestyle in retirement.
Is the TSP F fund good?
The overall risk is relatively low in comparison to certain other fixed income investments in the market because the F Fund includes only investment-grade securities.
Here are some general guidelines for asset allocation based on age: 20s-30s: 70-80% stocks, 20-30% bonds. 40s-50s: 50-60% stocks, 40-50% bonds. 60s and beyond: 30-40% stocks, 60-70% bonds.
Thrift Savings Plan F Fund Monthly Returns is at -1.41%, compared to -0.19% last month and -2.58% last year. This is lower than the long term average of 0.44%.
There's a one-word answer to that question: More! There is no such thing as too much money in the Thrift Savings Plan. If you want your TSP balance to be able to generate an inflation-indexed annual income of $10,000, most financial planners will suggest that you have a $250,000 balance at the time you retire.
Federal employees who are members of the Thrift Savings Plan (TSP) have the potential of becoming a TSP millionaire, with a fat nest egg in addition to their CSRS or FERS annuity. As of November 2022, there are 65,000 TSP millionaires. But why do they only makeup 1% of all federal employees and federal retirees?
The results: If you started saving $100 a week at age 25, you'd have over $1 million by age 65. If you start at age 30, your retirement savings would have grown to around $726,000 by 65. And if you began contributing $100 a week when you turned 35, you'd have close to $500,000 by retirement.
- As of the second quarter 2023, the average American household had wealth of $1.09 million.
- The average wealth of households in the top 1 percent was about $33.4 million.
- In the top 0.1 percent, the average household had wealth of more than $1.52 billion.
The TSP stock-based funds in 2022 had posted their worst year since 2008, with the C fund down 18.13 percent, the S fund down 26.26 percent, and the I fund down 13.94 percent. The F fund also posted a substantial loss in 2022, down 12.83 percent, while the G fund rose 2.98 percent.
Average TSP account balances for Uniformed Service Members reached $39,220.00 and Roth balances were $20,898.00, while average balances for BRS participants reached $11,597.00 and Roth balances were $10,025.00 as of April 2023.
If you choose to invest in the G Fund, you are placing a higher priority on the stability and preservation of your money than on the opportunity to potentially achieve greater long-term growth in your account through investment in the other TSP funds.
What percent should I put in my TSP?
To receive the maximum Agency or Service Matching Contributions, you must contribute 5% of your basic pay each pay period.
Reallocations and fund transfers are limited. Each calendar month, you can use your first two reallocations or fund transfers to redistribute money in your account among any of the TSP funds. After the first two of either transaction type, you can only move money into the G Fund.
An aggressive growth fund is a mutual fund that seeks capital gains by investing in the shares of growth company stocks. Investments held in these funds are companies that demonstrate high growth potential, but also carry greater risk.
| Fund | 2023 performance (%) | 5yr performance (%) |
|---|---|---|
| MS INVF US Insight | 52.26 | 34.65 |
| Sands Capital US Select Growth Fund | 51.3 | 76.97 |
| Natixis Loomis Sayles US Growth Equity | 49.56 | 111.67 |
| T. Rowe Price US Blue Chip Equity | 49.54 | 81.57 |
Your current or former spouse, or your dependents, could be awarded a portion of your TSP account if a valid Retirement Benefits Court Order (RBCO) to divide your account is issued.
