What is the safest TSP investment? (2024)

What is the safest TSP investment?

What is the safest TSP fund? The G fund is generally the safest option as it invests in government securities. Although you won't lose money investing in this fund, your rate of return will be low. This may be a good option if you are close to retirement.

What is the best performing TSP fund 2023?

The S &P 500, which is very similar to the C fund, finished the year with positive returns for the final 9 weeks of the year, propelling it to the best performing fund of the year of the five core funds (G, F, C, S, and I are the 5 core funds in TSP). The 2023 return for the C fund was 26.25%.

What TSP fund has the highest return?

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

What is the best fund mix for TSP?

What should I do with my TSP right now?

You can leave your TSP account intact and open an IRA or participate in your employer's retirement plan for new yearly contributions. This enables you to continue to save for retirement after TSP. If you want to learn more about the different options after TSP, check out our video.

What TSP funds does Dave Ramsey recommend?

In a nutshell, Ramsey advises federal employees to invest at least 5% in a Roth TSP, then invest the rest in a Roth IRA. He also recommends investing in a handful of TSP funds -- funds C,S, and I -- with a higher percent in the C Fund (at least 60 to 80%).

What fund on TSP is the most aggressive?

The conservative funds are the G and F funds and the aggressive funds are the C, S, and I funds.

What is the lowest risk TSP fund?

Although the securities in the G Fund earn a long-term interest rate, the Board's investment in the G Fund is redeemable on any business day with no risk to principal. The value of G Fund securities does not fluctuate; only the interest rate changes.

Can TSP make you a millionaire?

If you earn 8% on your money per year (which is historically pretty hard for a combined stock and bond portfolio to do), you can turn that into a million dollars within 25 years. It's no wonder, then, that the average contribution years of a TSP millionaire is over 29 years.

What is the average TSP balance at retirement?

Average TSP balances

The average TSP balance has grown steadily in the last decade, reaching the six-figure mark in 2013. As of 2021, the average TSP balance for FERS participants was $181,279, while the average TSP balance for CSRS participants was $194,424.

Which TSP should I choose?

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 you be investing in TSP?

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

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 is the rule of 55 for TSP?

The rule of 55 is an IRS provision that allows workers who leave their job for any reason to start taking penalty-free distributions from their current employer's retirement plan in or after the year they reach age 55.

How do I avoid paying taxes on my TSP withdrawal?

“Roth” refers to contributions you've elected to make to your TSP account with pay that's already been taxed. You do not pay income tax on the portion of your withdrawals that comes from your Roth contributions.

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 TSP better than Roth IRA?

A Roth TSP has higher contribution limits, automatic contributions, and matching contributions. However, the investment options are limited and at the moment you have to take RMDs at age 72. Roth IRAs have a great selection of investment options and they don't have RMDs.

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 are the 4 funds Dave Ramsey recommends?

And to go one step further, we recommend dividing your mutual fund investments equally between four types of funds: growth and income, growth, aggressive growth, and international.

What is the monthly return on the TSP F fund?

Thrift Savings Plan F Fund Monthly Returns is at 3.72%, compared to 4.51% last month and -0.65% last year. This is higher than the long term average of 0.44%.

What is the L 2025 fund in TSP?

The L 2025 Fund's investment objective is to achieve a moderate level of growth with a moderate emphasis on preservation of assets. The Fund's allocation in the G, F, C, S, and I Funds is adjusted quarterly.

What is the current TSP G fund interest rate?

Can TSP lose money?

The L Income Fund can have periods of gain and loss, just as the individual TSP funds do.

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.

Should I leave money in TSP?

Many participants choose to keep their money in the TSP because of the TSP's low-cost funds. And you can always move money into your TSP account by making rollovers from eligible employer plans and from traditional IRAs. You always control how your money in the TSP is invested, even if you aren't making contributions.