What Are The Different TSP Funds?

Should you max out your TSP?

The Thrift Savings Plan (TSP) is a great tool for federal employees to save for retirement.

Saving, and even maxing out your contributions to TSP is normally thought of as a good thing.

Yes, maxing out your TSP can be very beneficial, but may not be the best thing for your financial future..

Is TSP better than 401k?

Overall, the Thrift Savings Plan compares favorably to 401(k) plans, and if you work for the Federal government and can participate, it very likely makes sense to do so. It serves as a solid adjunct to the FERS pension, and the combination of the TSP and FERS can provide a solid foundation for retirement.

What age can you withdraw from TSP?

59½Age-based in-service withdrawals are withdrawals that you can make from your TSP account when you’re age 59½ or older.

How much should I invest in TSP?

At your age, a good goal would be to save a total of 10 to 15 percent of your salary, including the government match. Because of your young age, if you start to save at this rate now, and continue to do so for the rest of your career, you should be in great shape come retirement.

What is the best TSP fund?

The TSP’s C Fund is based on the S&P 500 index and both the C Fund and the C Fund had the best rate of return since 2013. The trailing fund for the year was the G Fund with an annual return of 2.24%. The G Fund is considered the safest of the TSP funds as it always has a positive return.

What is the L 2040 Fund?

The TSP L 2040 Fund is one of the TSP Lifecycle Funds, designed for investors who plan to withdraw their money beginning 2038 through 2042. … It aims to achieve a high level of growth with a low emphasis on preservation of investment capital.

Can you lose money in the TSP G fund?

The G-fund is an incredibly unique fund that isn’t available anywhere else in the world other than in the TSP. When investing in the G-fund you have a guarantee from the U.S. Government that you will not lose money in this fund. … Over the last 10 years, the G Fund has averaged a return of about 2.3%.

What is the C fund?

The Common Stock Index Investment (C) Fund The C Fund is invested in a stock index fund that tracks the Standard & Poor’s 500 (S&P 500) Index. This is a broad market index made up of the stocks of 500 large to medium-sized U.S. companies. It offers you the potential to earn high investment returns over the long term.

What is the average amount in TSP balance at retirement?

The average Thrift Savings Plan balance for Federal Employees Retirement System participants — 3.3 million people — was $138,933 in January. That compares to an average TSP account balance of $146,642 for the 314,193 Civil Service Retirement System participants.

How do you become a millionaire on TSP?

Here are 3 things that TSP millionaires understand and do.Invest Consistently. In investing, consistency trumps all. … The Match. TSP millionaires understand the power of the TSP match. … Once Again: Do Not Try To Time The Market. The last 10 years have been an incredible stock market run.

How does a TSP work?

Investing in a TSP As with other qualified retirement plans, employees contribute money to the account through payroll deductions, and the employer makes matching contributions up to a certain limit as defined by the plan. Contributions are tax-deferred until retirement as are earnings within the account.

Is the TSP L Fund a good investment?

L Funds become too conservative upon their maturity date. Investing is better than not investing. Despite these drawbacks, the L Fund is a suitable choice if you’re uncomfortable choosing among the other TSP investment options, or you don’t get around to making a selection.

How much does the government match my TSP?

Agency/Service Matching Contributions As a FERS or BRS participant, you receive matching contributions on the first 5% of pay that you contribute each pay period. The first 3% of pay that you contribute will be matched dollar-for-dollar; the next 2% will be matched at 50 cents on the dollar.

What are the L funds in TSP?

Lifecycle (L) Funds. Each of the ten L Funds is a diversified mix of the five core funds (G, F, C, S, and I). They were designed to let you invest your entire portfolio in a single L Fund and get the best expected return for the amount of expected risk that is appropriate for you.

How much should I have in my TSP at 40?

At 30, you should have half of your annual salary saved. By 40, you should have twice your salary, and by 50, you should aim for about four times your salary in retirement savings.

What is the most aggressive TSP fund?

TSP investors are conservative in selecting funds for their investments. While stock funds have the best overall returns, the G fund is the most popular fund as of March 31, 2019….How TSP Participants Invest.FundPercentageF fund3.7%C fund28.5%S fund10.3%I fund4.3%2 more rows•May 1, 2019

What is the best TSP to invest in 2020?

Best Performing TSP Fund in 2020 The F Fund is ahead 3.10% for the year and is up 8.84% over the past 12 months. That puts the F Fund ahead of any other TSP Fund for the first quarter of the year and also the best performing fund over the past 12 months.

How many times can I move my money in TSP?

When you make an interfund transfer, you are re-allocating your existing account among the TSP funds. Interfund transfers are done on the TSP website. Interfund transfers apply to both your Traditional and Roth TSP balances. You are allowed to make two interfund transfers per month, though there is an exception.