TSP returns


Q. Why can’t I reasonably expect 5 percent average return over a 30- or 40-year period on a TSP portfolio consisting of 43 percent C, 21 percent I, 6 percent S, 23 percent G, 7 percent F? Let’s assume modest fixed payment withdrawals of 2-3 percent over that 30- to 40-year time frame. I’m 55 and retired.

A. It’s reasonable to expect an average annual rate of return of at least 5 percent from this allocation, if rebalanced regularly.


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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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