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Warren Buffet is widely regarded as one of the most successful investors in the world, and his advice on investing is highly sought after by both amateur and professional investors alike. In recent years, Buffet has turned his attention to the Thrift Savings Plan (TSP), a retirement savings plan for federal employees, and has offered valuable advice on how to make the most of it.
One of the key pieces of advice that Buffet has offered regarding the TSP is to take advantage of the plan’s low fees and diversify your investments. Unlike many 401(k) plans, the TSP has incredibly low administrative fees, which means that more of your money goes towards your investments and less is eaten up in fees. Buffet has long been an advocate for low-cost index funds, and the TSP offers several low-cost index funds that allow investors to gain exposure to a broad range of asset classes, including stocks and bonds. By diversifying your investments across a range of asset classes, you can reduce your overall risk and potentially increase your returns over the long term.
Another piece of advice that Buffet has offered is to invest in the TSP consistently and for the long term. Buffet is a firm believer in the power of compounding returns, and he has often stressed the importance of investing for the long term. By investing consistently over time, you can take advantage of dollar-cost averaging, which can help smooth out the volatility of the market and potentially increase your returns over time.
Finally, Buffet has emphasized the importance of staying disciplined and not giving in to the temptation to time the market. Buffet famously said, “Our favorite holding period is forever,” and he has often advised investors to adopt a long-term mindset when it comes to investing. Trying to time the market and predict short-term movements is incredibly difficult, and Buffet has encouraged investors to stay the course and not be swayed by short-term market fluctuations.
In conclusion, Warren Buffet’s advice on the TSP is sound and can help federal employees make the most of their retirement savings plan. By taking advantage of the TSP’s low fees, diversifying your investments, investing consistently, and staying disciplined, you can potentially increase your long-term returns and secure a comfortable retirement. Buffet’s timeless wisdom on investing is a valuable resource for anyone looking to make the most of their retirement savings.
I am not touching my TSP until 75–and i am currently 80 C, 20 S
Never put even a fime a dime in the I fund. Stupid low return on investment for a supposedly long term growth fund. Stick to C and S. Magic formula is 80% C, 20% S for most of your federal career, then for retirement 80% C, 10% S, and 10% G. That's the winning formula to retire as a millionaire in the government.
It was a blood bath for the 90 /10 group in 2008 – 2009. It recovered later but still was a hard pill to swallow at the time.
Retired after 36 years, 10-15% pp, 90 C/10 G. $950k in tsp. It's not that hard. Adjusted to 50/50 after retirement.
I plan to take 50k a year from the tsp as part of the 4% rule. There’s absolutely no way I’m locking $400000 in the G fund.
Joe Biden has been my biggest problem retirement wise. He ruined my investments.
So basically Warren Buffet telling his wife to divest from brk.a brk.b and throw it in Sp500.
Retired CSRS 12 years ago. 65 years old. My TSP money is split 82% C, 10% G, and 8% bonds. I don't need it to live month to month, what should I be doing with it?
Unfortunately there is no way to only take money out of the G fund.
Doesn’t the L target retirement fund take care of this?
Encourage to go all in buy and hold till death if it’s down …buy more .
Don’t time market, best stock pickers (finance school grads) in the world lose to avg joe who buys and holds over long term 85 % of the time.
Nice to know I did as Buffett and didn’t know it. Most of my career of 28 years I did 90% c fund and 10% in g fund. Only after reaching my goal did I do 70 30. Same in retirement
Please help me to understand the 8 year hypothetical situation of needing the $10,000 per year in which I would pull from the G Fund. So in this case, would I need to to consistently keep $80,000 ($10,000 per year for 8 years) in the G Fund year after year no matter what the matter if the market was up or down the previous years? Also, which funds do I pull money out from in order to replenish the G Funds that I have been withdrawing the $10,000 per year and how often is that done? My worry is that I would be replenshing the G Fund from money where I may be selling C Fund in a down market or do I wait until C Funds stocks are in positive territory.
Its simple when you have Warren's money. If my retirement date is near it would be too risky to do 90/10
Thank you
So I have an annuity from Nationwide that I have yet to draw from. I take a little from my TSP monthly, along with my govt pension and social security. I think I made a mistake by leaving TSP alone and get money from my annuity instead. I’m thinking from this video I should change my plan and change my investments from the LFund to 50% into G and divide the rest between C and F ( maybe 30%/15%) and maybe small amount in S and I. Let it grow and take the annuity. I also have an IRA where I transferred some of my TSP. I ask my fiduciary about this as well.
His investment strategy is simple…. buy millions in stock of a company, disclose the purchase and make millions the next day.
How can I learn what "G" and "F" funds are in the TSP, and the comparable funds I should look for in my private IRA?
I’ve been in the G fund the last year.I’ve been waiting for stock market crash to go in.Is now a good time to go in? I’m not sure if the market is up or down? Thanks
Can you withdraw from just the G fund in retirement or will it pull money based on how you have it allocated?
Wouldn’t withdrawals in retirement using the “8 year rule” still be withdrawn according to percentage allocations? Meaning if most of the balance is still say C with the remaining in G, most of your withdrawal will come from C which could be down. I was thinking the purpose of this rule would be to withdraw from G while C works and grows.
Thank you for "8yrs" rule of thumb. It's another way for me to think about how to balance things out rather than just percentages.