TSP Investment Options/Mix in 2023

[ChuckMK23]

So what's your TSP investment fund(s) of choice? Given the low performance of equity and bond funds today - where you are lucky not to *lose* money, what are your favorite options besides a simple "Target Year" L "Lifecycle" fund?


For those of you that consider yourselves "smart" investors, what's your strategy?

 

[hscs]

Don’t you know that all of the good investment advice is on TikTok?

In all seriousness, I’m not a fan of the L funds and use the G/F/C/I/S on a typical 60/40 to 70/30 allocation. I do tweak that pretty aggressively based on the Buffett principle of being fearful when others are greedy and greedy when others are fearful. Switched to 30/70 about 9 months ago. Not the best results because of stock and bond market unlikely correlation. I also went all stock for future contributions to dollar cost average this screwy market to bring me back towards the 60/40-70/30 allocation because of all the recession talk, difficulty in engineering a soft landing, and yield curve inversion.

I only look at the account value once a quarter and will only make major changes between then if a major technical declares (eg death cross or yield curve inversion). I go all stocks for future contributions for those examples as they usually signal a down trend.

I’m not a pro / accredited so do at your own risk. I also would not listen to TV pros - Cramer was touting SVB a month ago.

 

[SynixMan]

Just me but I’m more aggressive on stocks for my TSP and civilian retirement accounts since I have a one (and likely two) pensions behind them as a backstop. If the plan is to get a FERS retirement, I’d argue you can accept more risk than a pure 401k retirement portfolio.

 

[Griz882]

I’m looking at the exit sign for my federal time so most of mine is locked in the L Fund.

 

[FormerRecruitingGuru]

I put all my TSP money in SVB.

 

[villanelle]

Just me but I’m more aggressive on stocks for my TSP and civilian retirement accounts since I have a one (and likely two) pensions behind them as a backstop. If the plan is to get a FERS retirement, I’d argue you can accept more risk than a pure 401k retirement portfolio.

Samsies. I handle all our financial stuff and since Husband is now 20+, I treat his eventual pension as essentially the bond portion of our portfolio. That lets us be much more aggressive with our investments than we otherwise would be.

 

[Randy Daytona]

For those of you that consider yourselves "smart" investors, what's your strategy?

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I don’t know if it is smart, or efficient, but safety led me to not go all in the market. Instead, I invested in some rental properties so that when I retire, I would have the passive monthly income of several rental houses to supplement my reserve retirement, social security and 401k. Spreadload the risk. Interestingly, the high inflation helps the real estate as all the mortgages are locked in at 3.125% or less.

 

[Brett327]

So what's your TSP investment fund(s) of choice?

Vanguard