Declining TSP return


Q: I put in 20 percent of my income into my TSP and monthly see the amount decline rather than increase. Should I lower the amount I put in for the next year and place it in a regular savings account until the market comes back or continue the 20 percent and hope for the best?

A: You’re talking about market timing, which is a long-shot bet. Your odds of success will be better if you determine the correct asset allocation scheme for your circumstances and goals and stay in it. This will put you in a defensive position that balances all the investment risks you face, rather than speculating against downside volatility alone. But if you’re determined to go to cash, I don’t know of a better place to do it than the TSP’s G Fund.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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