TSP allocation


Q. I am 31 years old and have five years of federal service. I am a GS-12, Step 3. I contribute 7 percent to the Thrift Savings Plan but have not done anything with the allocation: 100 percent to the G Fund. I have tried to determine the best allocation on my own, but there is too much information out there. I know that I need to do something now. I was thinking about 40 percent C Fund, 30 percent S Fund, 15 percent I Fund, 10 percent F Fund and 5 percent G Fund. Would this be a good start to set the allocation? How often should I revisit my set allocation to determine whether/how it needs to be updated?

A. It’s impossible to determine the right asset allocation model without the necessary analysis. If you aren’t skilled in pension fund management and don’t know what to do, I suggest that you invest in the L Fund that most closely corresponds to your life expectancy.


About Author

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 fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

1 Comment

  1. Hello – an aggressive or moderately aggressive allocation seem appropriate for you, though it is always diffiuclt to tell without knowing anything about your financial picture as a whole. But you can refer to the allocation recommendations for the TSP given here: http://www.kivalia.com/plans/293/thrift-savings-plan

    These are changed every quarter to keep up with the changes in the market. Hope this helps.

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