Don’t Lose Money
TSP is a long term investment vehicle! Treat it as such.
Albert Einstein is said to have called “the power of compound interest the most powerful force in the universe.” There is nothing more important than the effect of time on your TSP nest egg. The more time you have to save and invest, the better off you will be. This may be intuitively obvious but, when you really look at the numbers, the effect of compound interest is Mind Blowing! Start contributing to your TSP NOW, and keep contributing, whether the market is going up or down.
Be In The Stock Funds When The Market Is Trending Up
The TSP utilizes 3 stock index funds and 1 bond fund (C, S, I and F) to provide broad diversification within few fund choices.
You must manage your allocations to be in the stock funds when the market is trending up.
G Fund When The Market Is Trending Down
When the over-all market is trending down, the value of your TSP account will decrease over time. To prevent this, the TSP offers the G Fund as an option. (It cannot have a negative return, by law)
Know Your Risk Tolerance
How you invest in the TSP is a very personal decision based on a number of considerations.
We can help educate you on how to evaluate risk, and help validate your decisions through our technical analysis.