What fund should I put my TSP in 2023? (2024)

What fund should I put my TSP in 2023?

The “Safe” TSP Funds

What is the best performing TSP fund in 2023?

Over the course of 2023, the S Fund increased 25.30%. The common stocks of the C Fund finished December 4.54% in the black, while boasting gains of 26.25% for the year. The international (I) fund saw the second-best monthly performance of the TSP's core offerings, growing 5.39%.

What is the best fund allocation for TSP?

Here's the ratio we recommend for your portfolio:
  • 80% in the C Fund, which is tied to the performance of the S&P 500.
  • 10% in the S Fund, which includes stocks from small- to mid-sized companies that offer high risk and high return.
  • 10% in the I Fund, an international fund that invests in stocks from overseas companies.
Jan 4, 2024

Where should I invest my TSP right now?

You might consider investing more in our stock funds (C, S, and I) than in the more conservative G and F Funds at this stage of your career. Stocks present more risk but offer the opportunity for potentially higher returns over time.

How to double your TSP in 2023?

Long-term money should be in more aggressive funds like the C, S, and I. These aggressive funds are going to be the key to doubling your TSP overtime. So if you are early in your career there is often no reason to have conservative investments because you have so much time before you need your money.

What TSP fund has the highest return?

The C fund also has the highest 12-month returns at 19.54%.

What is the safest fund in TSP?

You have five TSP funds that you can invest in and five more funds known as "Lifecycle" funds that invest in the main five funds based on your retirement trajectory. The five main funds are: The G Fund: This fund invests in government securities and is the safest fund.

What does Dave Ramsey recommend for TSP?

Dave Ramsey's advice is to save 5% into the TSP to get the full match, then max out a Roth IRA, and then put more into the TSP if you are able to save more after that.

How can I maximize my TSP savings?

By starting early, contributing regularly, investing in a diversified portfolio, taking advantage of catch-up contributions, and considering the impact of taxes, you can maximize your retirement savings and enjoy a comfortable retirement.

How can I maximize my TSP earnings?

Maximizing Agency or Service Contributions

To receive the maximum Agency or Service Matching Contributions, you must contribute 5% of your basic pay each pay period.

Should I move my TSP to the G fund?

If you choose to invest in the G Fund, you are placing a higher priority on the stability and preservation of your money than on the opportunity to potentially achieve greater long-term growth in your account through investment in the other TSP funds.

Should I change my TSP allocation?

Financial planners suggest that you rebalance your portfolio each year so that it maintains its desired balance. For example, if your desired allocation was 50% C and 50% G, and you had $100,000 in your TSP, you would begin the year with $50,000 in each fund.

How much do I need in my TSP to retire?

There's a one-word answer to that question: More! There is no such thing as too much money in the Thrift Savings Plan. If you want your TSP balance to be able to generate an inflation-indexed annual income of $10,000, most financial planners will suggest that you have a $250,000 balance at the time you retire.

Can TSP make you a millionaire?

With a little self discipline and the power of compound interest, millionaire status is available to federal employees who make wise use of the Thrift Savings Plan. For some advice on how to get there, the Federal Drive with Tom Temin talked with retired federal manager Abe Grungold.

Should you put more than 5% in TSP?

If you are contributing less than 5% of your basic pay, you are missing out on free money. You can also elect to contribute more than 5% of your basic pay to your TSP account, as long as the contributions do not exceed the IRS deferral limit.

Is the TSP C fund a good investment?

The C Fund can be useful in a portfolio that also contains stock funds that track other indexes such as the S Fund and the I Fund. By investing in all segments of the stock market (as opposed to just one), you reduce your exposure to market risk. The C Fund can also be useful in a portfolio that contains bonds.

Is the C fund better than L fund?

The following graph illustrates these two alternatives. Staying in the C Fund would have resulted in a higher return. After four years, Tom would have had 10.6 percent more if he had left his money in the C Fund. There were only 60 days when the L Fund investments were worth less than the C Fund investment.

What is the difference between the TSP S fund and the C fund?

Core TSP Funds

Four of the five funds are index funds, which hold securities exactly matching a broad market index. The money participants place in the F and C Funds is invested in separate accounts, while the S and I Fund monies are invested in trust funds commingled with other tax-exempt pension and endowment funds.

Is the G fund a good investment?

When investing in the G-fund you have a guarantee from the U.S. Government that you will not lose money in this fund. It also guarantees the return of long-term treasuries but allows you to trade in and out as if it were short-term treasuries. Basically, it gives you higher returns with virtually no risk.

Which TSP fund is best traditional or Roth?

For high earners, a Roth TSP may be one of the best ways to save money after tax, as there is an earnings limit on contributing to a Roth IRA. A traditional TSP may be a better choice if you want to reduce your current taxable income and pay taxes on withdrawals during retirement.

How much should I have in TSP at 50?

By age 50, you would be considered on track if you have three to six times your preretirement gross income saved. And by age 60, you should have 5.5 to 11 times your salary saved in order to be considered on track for retirement.

What are TSP millionaires?

Have you, as a federal civilian employee, ever imagined you could become a millionaire? The truth is, you actually can through the Thrift Savings Plan (TSP). Currently, about 1.4% of TSP participants have portfolios worth a million dollars or more.

What is an aggressive TSP strategy?

The Aggressive TSP Funds

The C, S, and I Funds are the more aggressive of the funds in the TSP. The reason they are called “aggressive” is because they have a much higher chance of sustaining major growth over time. However, because of this, they can also be much more volatile than the G and F Funds.

When should I change my TSP allocation for 2024?

You may enroll in the TSP program or make contribution changes at any time; however, if you wish for your contribution deductions to begin the first pay date in 2024, you must make your TSP election effective for pay period 26 (December 17, 2023, through December 30, 2023), which has a pay date of January 8, 2024.

What happens to my TSP when I retire?

You can request to receive a total distribution of your entire TSP account balance if you want to take all of your money out of the TSP. Once processed, your TSP account balance will be $0, and you'll no longer be able to move money into the TSP from eligible plans.


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