TSP and investing


Q. I have accumulated a tidy sum in my TSP investment account. It is diversified between stocks and the G Fund. With the volatile market, should I take money from the stock fund and move it all to the secured G Fund? I would still contribute while working. I plan to retire in two and a half years at age 66½ and worry about having this money secured for retirement.

A. The G Fund is the only TSP fund that protects you from the risk of short-term loss. It may also subject you to the long-term risk of failing to earn enough return to meet your needs in retirement. If you’d like your TSP account to support the maximum standard of living over your lifetime, I suggest that you consider investing your entire balance 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.

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