I will show you how to Invest in the TSP in 2022 using the strategies of the best investors in the world.
I share 5 different asset allocations for you to choose from. These are investing methods used by financial gurus and master investors like Warren Buffett and Dave Ramsey.
I give you the exact TSP asset allocation, what percentage of what fund, to mimic the strategies of the best investors.
I give you the changes you should and shouldn’t make in your portfolio in 2022.
I talk about deadly TSP mistakes you want to avoid at all costs.
Lastly, I discuss how to protect your TSP balance as you approach retirement by using bonds.
Invest like the best investors in the world.
To view my blog post on this, see:
To view my blog post on protecting your portfolio as you near retirement, see:
…(read more)
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How to Invest in TSP 2022 – Best Allocation Strategy
The Thrift Savings Plan (TSP) is a retirement savings plan available to federal employees and uniformed service members. Similar to a 401(k) plan, the TSP offers several investment funds that allow participants to grow their savings over time. If you are looking to invest in the TSP in 2022, it is essential to have a solid allocation strategy that aligns with your investment goals and risk tolerance. Here are some tips to help you create the best allocation strategy for the year.
1. Determine your risk tolerance: Before deciding on an allocation strategy, it is crucial to assess your risk tolerance. Consider your age, time horizon, and financial goals. Generally, the younger you are, the more risk you can afford to take, as you have time to recover from any market downturns. Conversely, those nearing retirement may want to take a more conservative approach. Assess your risk tolerance honestly to create an allocation strategy that suits you.
2. Understand the TSP funds: The TSP provides five core investment funds: the G Fund (government securities), F Fund (fixed-income index fund), C Fund (common stock index fund), S Fund (small-cap stock index fund), and I Fund (international stock index fund). Each fund offers different levels of risk and potential returns. Educate yourself about these funds to make informed decisions about your allocation strategy. You can find detailed information about each fund on the TSP website.
3. Diversify your portfolio: Diversification is key to any successful investment strategy. By spreading your investments across different asset classes, you can reduce risk and potentially enhance returns. Consider allocating your funds across various TSP options to achieve diversification. For example, you could invest a portion in the G Fund for stability, a portion in the C Fund for growth, and a portion in the I Fund for international exposure. Finding the right balance between the funds is crucial to your allocation strategy.
4. Consider your investment horizon: Your investment horizon is the length of time you plan to keep your money invested in the TSP. If you have a long time until retirement, you may want to allocate a larger portion of your funds to equity-based funds like the C Fund, S Fund, and I Fund. These funds typically have higher growth potential but also come with greater volatility. On the other hand, if retirement is approaching, you might want to increase your allocation to more stable options like the G Fund or F Fund.
5. Regularly review and rebalance: Investment portfolios require regular monitoring and rebalancing. Market changes can cause your asset allocation to deviate from your initial strategy. Make it a habit to review your portfolio at least once a year. If the allocations have strayed significantly from your desired percentages, rebalance your investments by selling funds that have become overweight and investing in funds that have become underweight.
6. Seek professional advice if needed: If you are unsure about creating an allocation strategy or if you have complex financial circumstances, consider consulting with a financial advisor. They can help you determine the best allocation strategy based on your individual goals, time horizon, and risk tolerance. They can also guide you through market fluctuations and provide expert advice on adjusting your allocation strategy as needed.
Investing in the TSP can be a smart way to build a retirement nest egg. By creating a well-thought-out allocation strategy that considers your risk tolerance, diversification, and investment horizon, you can make the most of the TSP’s offerings. Regularly reviewing and rebalancing your portfolio, as well as seeking professional advice if needed, will help ensure that your allocation strategy remains on track in 2022 and beyond.
How about now that Russia is at war with Ukraine? Where do we put the $ in risky or G fund L funds?
How does G:5%, F:10%, C:70%, S:15% sound?? I'm a 34 years old service member, 10 years away from hitting 20 years of service.
I have a money manager that has produced an 8.1% annualized return for the past 10 years.The largest draw down during this time is 1.9% This is a managed income program, ALL BOND FUNDS. Not being able to time any market is the biggest myth on Wall st., or I should say lie. How many people can emotionally endure a 50/60% or more drop in their account? By the way, how is your F fund doing? Reply for details.
I really like your videos. Thank you.
just changed from Lifecycle fund to 80% C and 20% S. I've only been doing TSP in the service for 4 years though. this video helped me understand the differences and advantages thank u kind Sir!
Still waiting for my sugar momma.
I wonder if this video is aging well?
I’m still on the fence with the I Fund. It has outperformed the SP500 (pre 2008). However I don’t like how it doesn’t include some major companies for political reasons.
i got scared earlier this year and put all my money in the G fund. probably a bad move. when should i take it out and reinvest in S and C fund? i have 8 years until retirement
Really appreciate your videos. 3 Questions…I understand the most important thing is to pick a strategy, stick to it no matter what, then modify it as I near retirement using the law of 120. 1) how often should you make the law of 120 adjustment? annually? 2) why do you think your allocation strategy is better than warren buffet's? 3) how would you rank order these 5 strategies from riskiest to most conservative?
This advice was exactly what I was looking for since i'm new to investing in TSP. Thank you!
I simply put 67% in the C Fund and 33% S Fund and I’ve left it alone. More times than not a simple plan is all one needs.
The new TSP web site is a disaster, with inability to design a default YTD screen, inability to get prior year statements…what a mess.
Just turned 19 and active duty army member could you break it down to the simplest form for me
New subscriber here. Thanks for the excellent video.
I’ve been maxed out half S half C for a couple years now. Still got a couple decades before retirement so I’m actually hoping stocks continue to go down in the short term so I can keep buying at sale prices. Great video!
Wish we had a tech index(qqq)…I had no idea f bonds could drop as much as they have this year!
45 – C, 45 – S and 10 F
Awesome vid. I go 50% C and 50% S. Obviously ever since we went into 2022 it’s gone down so bad but that only means my new investments are more effective in the long run
70C/30S here, I agree generally against the I fund but for slightly different reasons than market exposure to smaller and emerging markets. My reasoning is three-fold: most US companies are somewhat globalized now anyway, the US is probably the freest capitalist market (though this may unfortunately be rapidly changing), and the I fund has significantly underperformed the C&S for about 20+ years (supposedly this goes in cycles, we'll see).
In regards to risk tolerance, my opinion is any discussion about risk tolerance should always include defining one's goals. It is not as simple as how uneasy are you about investing, and I think this is quite often missed in discussion. Someone may never reach their goal of retiring comfortably if their risk tolerance leads them to putting all their money in the G fund for example.
Finally, I'm a big fan of DR as well. I'm heading to your video on Dave next 😉 Cheers
Thoroughly enjoy your videos. Im 34 Former AF now gov employee. For both its just been 34% C, 33% S, & 33% I. Agency match for traditional tsp but difference to max is put into roth tsp. Thank you for sharing your insights
Thanks for making it simple! This is a better jumping-off point than other videos I’ve seen lately, and I like your humor.
Your right thank you
Active duty here. What are your thoughts on investing in both TSP and IRA?
I'm currently investing in both, but I'm feeling like by splitting my investment I'm not getting the full benefit on either.
All sound advice. How often do you rebalance your TSP account?
Please make a video on the I fund. Want to know what you know.
Why is it not worthy the risk?
What could go right?
What could go wrong?
What is better and why?
I watch your videos Rich! I am an Air Force CMSgt with an 80% C and 20 % S TSP. I also have Roth IRAs for my wife and I with Schwab SWPPX. I always appreciate your perspective, especially with real estate. Take care my friend!
I’ve been losing money for the last five months, since I moved my money to the S and C stocks. What’s going on? How can this work for some?
maybe move the established money to G and new in to s, c, and f?
your advice is great in a bull market, but what about a bear market?
Great info! Warren Buffet, Jack Bogle, Sir John Templeton, all 3 shared insightful guidance in efforts to help the masses. All 3 changed the landscape. You honor these towers of integrity here.
So I’ve lost a ridiculous amount of money over the last few months. So, possibly foolishly, I’ve dumped my enter allocation and contribution into G while I obtain much needed advice.
For the love of everything, please touch on this.
I understand you spoke about quick changes vs long term. But Coming from a previous 50/50 c/s, there’s no way to hide the feelings of going from a 26% ROR to a now 15% with everything going on… And expecting it to level in the short term.
I'm currently 34 yrs old and have 90%C and 10%S funds and contributing 13% and plan to go up to 15-17% and making a increase of 1% additional contributions each year till I reach that goal!! great video!
I have 5 years to go how can I put$ on
Second year investing in my TSP at 45years old. And 14% per paycheck. Do you suggest 70% C and 30% S?
Eventually I will be investing more but as far as percentages is that ok? Thank you
Just watched the video made it very easy to understand. thanks for the info I will be changing my tsp to one of the thing u shared. thanks
I have 60% C, 20% S and 20% I fund. I’m only doing 5% in TSP since that’s what’s matching. Should I bump it up some?
I have 60% C, 20% S and 20% I fund. I’m only doing 5% in TSP since that’s what’s matching. Should I bump it up some?
Just found your videos and so glad I did! I am 55 and 8-10 more years to work. I have been doing 100% C fund. Should I change now?
Thank you for this video it help me get a better understanding on my TSP. I’m 23 about 2 1/2 years with my company and I had no clue what a TSP was or how to invest I was investing 50% in the G fund 25% F fund and 25% lifecycle 2050 . I chose those prior to watching this video because I had no knowledge on the funds so I chose the 2 safest and I thought the lifecycles were the year you will retire ! Within the 2 1/2 years with my company I accumulated 18.5k . Now after watching this video I learned I have easily 36 more years till I can be eligible(age 59) for my TSP and what the funds are/represent with the stocks. I now changed my investment to 50% C and 50% S . I have a lot of time ahead of me so I’m grateful I found your video and how you revealed your pro-folio for beginners like me to have a great head start into retirement.
Hi, I put 100% on C around 4 months.
This is ok, put all money on C?
Rich is it really better to roll over your TSP into a Roth IRA after service or is it better to just leave it in the TSP? I was told to leave it in the TSP because the money is safer there…not sure why… Also, in one of your videos you say to do this roll over, but what I find is you still have to wait until 59 1/2 plus 5 year to use all money… Can you please clarify the benefits and the difference?
100 percent c here