TSP allocations for growth


Q. I currently have $165,000 in my TSP in the L30 fund. Should I leave it there for my remaining nine years or switch to the C Fund for more growth?

A. An allocation of 100 percent C Fund is risk-inefficient in that it fails to offer its expected return for the minimum possible risk. If you want to maximize your risk-adjusted growth potential, you will be better served by using the beginning allocation for the L2050 fund: 44 percent C Fund; 19 percent S Fund; 27 percent I Fund; 3 percent G Fund; 7 percent F Fund.


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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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