What is the safest TSP fund? (2024)

What is the safest TSP fund?

The G Fund is often considered the safest option among TSP funds.

What is the least risky TSP fund?

Consider investing in the G Fund if you would like to have all or a portion of your TSP account completely protected from loss.

What is the best TSP fund to be in?

The common stocks of the C Fund continued its strong recent showing, increasing 5.34% last month. The C Fund has grown 7.49% in 2024, marking the best performance among the TSP's core funds.

What is the most conservative TSP fund?

However, the L Income Fund is the most conservative of the L Funds. It focuses on money preservation while providing a small exposure to the riskier funds (C, S, and I Funds) in order to reduce inflation's effect on your purchasing power.

Which TSP fund is the most aggressive?

The most aggressive Lifecycle Funds (L Funds) were up 14.6% (the L 2055, 2060, and 2065 Funds) so far this year. All TSP Funds are up in 2023. Over the past 12 months, only one TSP Fund has had a negative return. That is the F Fund which is down 0.87% over 12 months.

How to retire a millionaire with TSP?

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.

Is my money safe in TSP?

It may surprise some of you to learn that none of the money in your TSP account is insured by the Federal Deposit Insurance Corporation, like your bank deposits are. When you invest for retirement, you take on varying levels of risk, depending on how you allocate your investments.

What is the monthly return on the TSP F fund?

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%.

What is the monthly return on the TSP G fund?

Thrift Savings Plan G Fund Monthly Returns is at 0.33%, compared to 0.34% last month and 0.28% last year. This is lower than the long term average of 0.37%.

What is the recommended asset allocation for a 60 year old?

You may have heard of age-based asset allocation guidelines like the Rule of 100 and Rule of 110. The Rule of 100 determines the percentage of stocks you should hold by subtracting your age from 100. If you are 60, for example, the Rule of 100 advises holding 40% of your portfolio in stocks.

How does Dave Ramsey invest in TSP?

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.

What does Dave Ramsey say about TSP funds?

How Does Dave Ramsey Recommend Federal Employees Allocate Their TSP Investments? Dave Ramsey recommends avoiding the Lifecycle Funds completely and sticking with the 3 core TSP stock funds for investing over a long federal career because they provide the most growth potential.

What is the recommended TSP allocation by age?

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.

Should I invest in the F fund TSP?

Why should I invest in the F Fund? F Fund investors are rewarded with the opportunity to earn higher rates of return over the long term than they would from investments in short-term securities such as the G Fund.

Why is Roth TSP better?

With Roth TSP, your contributions go into the TSP after tax withholding. That means you pay taxes on your contributions at your current income tax rate. The advantage of the Roth TSP is that you won't pay taxes later when you take out your contributions and any qualified earnings.

Should I put 100% in C fund?

If we were all trying to just make as much as possible, we'd put 100% of our money in the C fund because it has the highest average return over its lifetime.

What is the best portfolio for TSP?

Your best bet is to stick with the C, S and I Funds. Here's the ratio we recommend for your portfolio: 80% in the C Fund, which is tied to the performance of the S&P 500. 10% in the S Fund, which includes stocks from small- to mid-sized companies that offer high risk and high return.

What percentage of TSP are millionaires?

Although 1.4% of total TSP participants may seem like a small number, it is evident that becoming a TSP millionaire is achievable. Yes, you could be part of the TSP Millionaires Club.

How many people are millionaires from TSP?

As of September, about 95,000 of you had a TSP account with no less than $1 million. A year ago, only 65,500 did. Published by the Federal Retirement Thrift Investment Board, the millionaires' club roster fluctuates quarterly, but the trend is way up for the past year.

How much is too much TSP?

The 2024 IRS annual limit for regular TSP contributions is $23,000. If you are covered by the Federal Employees Retirement System (FERS, FERS-RAE, or FERS-FRAE), you will lose valuable Agency Matching TSP contributions, if you reach the annual limit before the end of the calendar year.

How long can you leave money in TSP?

A separated employee can withdraw their money from the TSP at any time, while a current employee can only withdraw money from the TSP via a hardship withdrawal or an age-based withdrawal. The TSP is clear as to what constitutes a hardship, and you must be 59 ½ or older to take an age-based withdrawal.

Which is better Roth or traditional TSP?

The primary difference between Roth and traditional TSPs is how they're taxed. Specifically, a traditional TSP is better if you want to leverage your account to decrease your current income taxes and pay for withdrawals during retirement.

How much should I put in my TSP per month?

To receive the maximum Agency or Service Matching Contributions, you must contribute 5% of your basic pay each pay period.

What is the average TSP return C fund?

Does your TSP grow after retirement?

Once you retire from federal service, you can no longer contribute to your TSP. However, that doesn't mean that your TSP won't continue to grow. You will benefit from compound interest, and you can still transfer retirement assets from other existing accounts, such as a 401(k) or IRA.