tsp management

[asuasylum]

Trying to figure out tsp. If I put in for an inter fund transfer should I also change contribution allocations? I have been changing both and my number isn't raising much. Thoughts?

 

[tsptalk]

Welcome asuasylum -

It depends how often you make transfers and somewhat on how large your balance is.

If you make a couple of month it probably won't make a big difference particularly if you have a decent balance since every time you make an IFT your entire balance gets re-allocated.

The bigger your balance, the less of an impact your new money's returns have on your total return, and if you make a couple of transfers a month, the difference may be close to negligible.

If you rarely make changes it might be better to keep them both the same.

But, you can always do both every time you make an IFT if you want to make sure your new money follows the allocation of your old.

Good luck!

 

[kave]

But, you can always do both every time you make an IFT if you want to make sure your new money follows the allocation of your old.

Good luck!

This is what I do. I have my contribution allocation going to L2020. I usually execute a minimum of 2 IFTs/month. So when I put an IFT in effect I reallocate my contribution allocation accordingly. Best of luck to you!

 

[Cactus]

I don't think it makes a difference. Do what you feel comfortable with. I always have my contributions going into the market (S & I Funds currently) as a type of dollar cost averaging. Others put their allocations into the G Fund, preferring safety until they choose to invest it somewhere. This all gets reallocated whenever we make an IFT.