I’ve put together a simple guide to highlight some of the basic realities that are left out when marketing material and commission seeking managers try to sell academic theory in allocation setting.
This is not rocket science. It just takes time to do the research which is not something most investors have. This 15 minute guide will save you a lot of time and hopefully increase your future returns starting today by changing some assumptions about the TSP funds you can invest in.
The top concepts you should understand before setting TSP allocations:
1) Why has the TSP I fund significantly UNDER performed this cycle and will the next one.
2) How are the TSP C and S fund performance correlated, and can you take advantage of their different patterns.
3) Why you should spend more time in the TSP G fund rather then the TSP F fund when seeking safety.
4) What is your most important decision in allocations and why all others pale in comparison.
5) While you should not market time based on valuations, market valuations do determine future long-term returns.
6) While market timing is a bad idea, market cycle considerations is critical to preserving your nest egg.
— the last bear market gave up 110% of the previous bull market gains in short order… it matters.
Please click on our updated Best TSP Allocation to start this short three page guide and hopefully learn something new. I do not collect e-mails or allow advertising.
TSP & Vanguard Smart Investor