TSP moderate portfolio


Q. What would be the allocation for a moderate portfolio TSP? What percentage for C Fund, G Fund, I Fund, S Fund and F Fund?

A. There is no generally accepted definition for “moderate”, but here is a suggestion: 40 percent for a C Fund; 15 percent for an S Fund; 5 percent for an I Fund; 3 percent for a G Fund; 37 percent for an F Fund. Considering the TSP’s current expense ratio, this allocation has an expected annual return of about 10 percent with a standard deviation of about 12 percent. This means that in the very worst years, maybe one or two years in 50, you should expect the allocation to lose as much as 14 percent.


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

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