Watching your Thrift Savings Plan decrease is no fun, especially if you are getting close to retirement. There are a couple of things you can do in times like this that could help dampen the blow.
Two things you can do if you are comfortable adding a little bit of risk:
1. Increase your TSP contributions
2. Change your TSP allocation to the stock funds
As Mr. Buffet once said, buy when there is “blood in the streets.” Even though we may intellectually understand this, it is tough to do when the time comes.
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Unfortunately, these actions don't represent my situation because I'm already in retirement. I've just started taking occasional (not regular) withdrawals from the TSP. I'm 64, and have a fairly high risk tolerance, partly thanks to having a pension and having not yet started Social Security payments. So my TSP portfolio is 50% invested in stocks (C & S funds). The rest is in the G & F funds.
During this period of deflated stocks (July 2022 to be exact) I'm trying to figure out a way to take those occasional withdrawals without robbing myself of the potential for a rebound later. I would think ideally I would take the money from the G or F funds, but since TSP doesn't allow me to select which fund I withdraw from, is there another way?
Offset your allocations with the F fund (bonds) as it reacts opposite of a down market. That’s where you hold the balance of your funds yet continue to buy up C & S shares.