What is the best TSP fund to invest in? (2024)

What is the best TSP fund to invest in?

The G Fund is often considered the safest option among TSP funds. It invests in U.S. Treasury securities, providing a stable return with minimal risk.

What is the most aggressive fund for TSP?

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

Should I invest in the L fund TSP?

You should consider investing in the L Income Fund if you were born before 1961, are currently withdrawing money from your TSP account, or you plan to begin withdrawing money this year. Am I ok with market and inflation risk? The L Income Fund can have periods of gain and loss, just as the individual TSP funds do.

What is the most conservative TSP fund?

The fifth core fund, the G Fund, invests in very low-risk, low-yield government bonds and guarantees principal protection to investors. The G Fund is intended for very conservative investors.

Is the S fund in TSP a good investment?

While investment in the S Fund carries risk, it also offers the opportunity to experience gains from equity ownership of small-to-mid-sized U.S. companies. It provides an excellent means of further diversifying your domestic equity holdings.

How to retire a millionaire with TSP?

How many TSP investors are millionaires?

As of year-end 2023 just under 117,000 TSP investors had $1 million or more in their accounts, an increase of some 40,000 during the year, another impact of the rebound in stock-based investment funds during the year making up for their losses of 2022.

What is the average TSP balance at retirement?

Total TSP assets at the end of 2023 were $845 billion. 4,060,009 FERS TSP accounts with an average account balance of $175,692. To compare, the average 401(k) balance based on 4.9 million defined contribution retirement plans was $112,572 at the end of 2022, according to Vanguard's 2023 analysis.

What is the monthly return on TSP L 2030?

Basic Info. Thrift Savings Plan L 2030 Fund Monthly Returns is at 2.16%, compared to 2.74% last month and 1.87% last year. This is higher than the long term average of 0.61%.

What is the return on the TSP L Income Fund?

Basic Info. Thrift Savings Plan L Income Fund Monthly Returns is at 1.29%, compared to 0.36% last month and -0.55% last year. This is higher than the long term average of 0.35%.

Can you be a millionaire from TSP?

Federal employees who are members of the Thrift Savings Plan (TSP) have the potential of becoming a TSP millionaire, with a fat nest egg in addition to their CSRS or FERS annuity. As of November 2022, there are 65,000 TSP millionaires.

What is the monthly return on the TSP G fund?

Basic Info. Thrift Savings Plan G Fund Monthly Returns is at 0.38%, compared to 0.33% last month and 0.35% last year. This is higher than the long term average of 0.37%.

Which TSP fund is best traditional or Roth?

The primary difference between Roth and traditional TSPs is how they're taxed. Specifically, a traditional TSP is better if you want to leverage your account to decrease your current income taxes and pay for withdrawals during retirement.

How risky is the TSP C fund?

TSP C Fund Overview

The C Fund is moderately volatile and is subject to market risk as the price of stocks in the S&P 500 Index rise and fall. Further, you are exposed to inflation risk if your C Fund investment does not grow enough to offset inflation.

How is the C fund doing in TSP?

Thrift Savings Plan C Fund Monthly Returns is at 3.22%, compared to 5.34% last month and 3.67% last year.

How to invest in TSP 2024?

How much should I have in TSP by age 50?

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

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.

What is the rule of 55 for TSP?

The rule of 55 is a great feature of your Thrift Savings Plan that helps early retirees. This IRS rule means that those who leave service in the year they turn age 55 or later can take TSP withdrawals without penalty.

What is the safest investment in TSP?

The G Fund is invested in U.S. Treasury securities specially issued to the TSP. Payment of principal and interest is guaranteed by the U.S. government. Thus, there is no “credit risk.”

What is the average TSP account size?

Average TSP account balances for Uniformed Service Members reached $39,220.00 and Roth balances were $20,898.00, while average balances for BRS participants reached $11,597.00 and Roth balances were $10,025.00 as of April 2023.

How much should I have in my TSP by age?

For example, if your salary is $50,000 per year, you should target to save $50,000 by age 30, $150,000 by age 40, $300,000 by age 50, $400,000 by age 60, and $500,000 by age 67.

How much should I have in my TSP at 60?

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.

Is it better to leave money in TSP after retirement?

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.

How much should I have in TSP by 40?

These rules of thumb say you should have saved ... 2 to 3 times your income by age 40. 3 to 4 times your income by age 45.