TSP and investing in different funds


Q. I’m late out the gate with my TSP account, however I’m excited that the C Fund is on a gaining streak right now. I used to have my 5 percent going to the G Fund, then whatever total amount I had in the G Fund I switched it completely over to the C Fund. I also added another 1 percent, so now I have a total of 6 percent of my paycheck going into the C Fund. I’m only a Grade 7 so finances are a little tight, and I’m sure they are going to be even tighter when it comes time for my retirement.

What more can I do with my TSP account? Can I add another X percent or put some of my C Fund monies into another fund (S Fund, I Fund, etc.)?

A. The most beneficial thing you can do for your TSP account is to contribute as much as possible. The next best thing you can do is to better manage the risk you are taking to get that C Fund return. Without the benefit of more thorough analysis of your resources, goals and constraints, the best way for you to do this in support of maximizing the lifetime income that can be supported by the account is to put your TSP money into 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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