Which TSP plan is best? (2023)

What is the best TSP plan?

For more conservative investors, note that the G Fund (often considered the safest TSP Fund) had a return of 1.38% for the year. The L Income Fund, which also includes some stock investments, had a much better return than the G Fund. The L Income return in 2021 was 5.42%.

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What is the best TSP fund to invest in 2022?

The C, S, I and F funds have all lost money in 2022 while the G Fund has the inherent advantage of being guaranteed by the government. In other words, the G Fund can't lose money while all the other funds have suffered losses.

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What TSP fund should I put my money in?

– 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.

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How do I maximize my TSP return?

6 Keys to Maximizing Your Thrift Savings Plan Account
  1. Weigh Your Options. ...
  2. Contribute as Much as Possible. ...
  3. Consider the Roth Option. ...
  4. Don't Withdraw Early. ...
  5. Invest According to Your Situation. ...
  6. Monitor Your Investments.
20 Nov 2019

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What does Dave Ramsey say about 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.

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Which is the safest TSP fund?

Consider investing in the G Fund if you would like to have all or a portion of your TSP account completely protected from loss.

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Should I invest in the C fund?

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.

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Is the TSP G Fund a good investment?

The rate-of-return for the G-Fund is guaranteed to be positive, but the returns are generally low (last month's +0.21% for example) and the gains haven't kept pace with inflation for years (and it's not even close as of late). The annual return for the G-Fund hasn't been over 3% since 2008.

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Why is the TSP losing money?

Accelerating inflation and rising interest rates led to a rout in stocks over the last six months. The S&P 500 index (the index on which the TSP's C Fund is based) is down 21% through June 30, 2022 (the C Fund is down 19.96%). This loss is the worst six months in the start of a year since 1970.

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Which is better C fund or S fund?

While the C-Fund invests in companies that are included in the S&P 500, the S-fund includes smaller companies than those that would be found in the C-fund. The “S” in S-fund stands for “small company stocks” but includes companies with market capitalizations that are considered medium-sized and large.

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How risky is the C fund?

The Risks and Potential Growth

According to the TSP website, the C Fund contains market risk and possible inflation risk. Because the value of what a participant has invested in the C Fund is dependent on the stock prices of the S&P 500 companies, there is an inherent risk that the prices could drop and incur a loss.

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Should I Roth or traditional TSP?

For most, the Roth TSP is the better choice because currently, you're in a lower tax bracket than you'll be in the future. With a Roth, your earnings and withdraws are tax-free because you contribute after-tax money, meaning you pay taxes upfront.

Which TSP plan is best? (2023)
What is the average TSP rate of return?

Average return since inception (1988) is 10.43% .

What is the average TSP balance at retirement?

Average 401k Balance by Age
AgeAverage Contribution RateAverage Balance
All Ages9%$95,600
3 more rows
11 May 2021

How can I protect my TSP from the market crash?

However, when the market goes back up, they miss out on the recovery. TSP experts say, “You will kill your TSP growth if you do this.”
How can I protect myself?
  1. Don't overreact. ...
  2. Revert to the “buying high and selling low” methodology. ...
  3. Make sure your portfolio is diversified. ...
  4. Consider your risk tolerance.
10 Mar 2022

What percentage should I put in TSP?

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

Should I max out my TSP?

If you qualify for federal match funds, you should contribute to your TSP at least up to this limit (3% of your salary). Beyond this, it can make sense to have a Roth IRA alongside your Roth TSP: No rules prevent you from contributing to both. Ideally, you could max out both accounts to boost your retirement savings.

What can you not do with your TSP?

Taking a loan from your TSP is a bad idea. The money you're putting into your TSP is for retirement, not for buying a new car. If you leave federal employment with an outstanding TSP loan you have to pay back the full loan balance (opens in new tab) within 90 days.

Is G fund or F fund better?

F Fund investors are rewarded with the opportunity to earn higher rates of return over the long term than they would from investments in short-term securities such as the G Fund.

Is the TSP F fund good?

Is the F Fund a good investment? It's a good investment if your investing goals are in alignment with the objective of the F Fund, which is for diversification, lower risk than the G Fund, and capital preservation. But it still has risks just like any investment.

What is the current G fund interest rate?

Thrift Savings Plan G Fund Monthly Returns is at 0.28%, compared to 0.25% last month and 0.11% last year. This is lower than the long term average of 0.37%.

What is the average return for the C Fund?

Thrift Savings Plan C Fund Monthly Returns is at -9.21%, compared to -4.08% last month and -4.65% last year. This is lower than the long term average of 0.90%.

How many thrift millionaires are there?

Now, there are about 72,000 TSP millionaires — a nearly 36% decline — according to the Federal Retirement Thrift Investment Board.

Does the TSP C Fund pay dividends?

You do earn TSP dividends. In fact, you'd get the same amount of dividends that you'd get from any similar stock index fund. However, in the TSP's effort to reduce administrative expenses, the dividends are automatically reinvested.

Why is the TSP G fund so low?

But the decline in G Fund returns is not because the government has gotten stingy, it is a combination of historically lower inflation and interest rates.

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