Finding a 'safe' TSP fund


Q. I am a CSRS employee with less than eight years left until retirement with a Thrift Savings Plan balance of over $200,000. Should I move all of my money to a “safe” fund for the next six months or so until this fiscal cliff mess is cleared up? Looking not to lose money this time, so which fund is the smartest to move my TSP funds to?

A. When was the last time it seemed safe to invest? There’s no such time. That’s the problem with timing out of the markets: You then have to time back in or you lose the opportunity for growth, which often comes in spurts. If I were managing your money, I would stick with a diversified portfolio to hedge the variety of risks you face. How you manage it is up to you, however, since you’re responsible for the outcomes. If your objective is to avoid the risk of loss in value, which is only one of the risks you face, the G Fund is only fund that will do that.


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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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