Maximizing Your Thrift Savings Plan (TSP) with Federal Employee Benefit Advisors (FEBA)

While traditionally considered a conservative investment, the F Fund has underperformed:

• 10-year average return: 1.64%
• 2022 loss: -12.83% (correlated with stock market downturns)

With its lackluster returns and significant risks, the F Fund does not provide the stability it was originally intended to offer.

G Fund: Government Securities Investment Fund

The safest option within TSP, the G Fund ensures no losses but struggles to keep pace with inflation:

• 10-year average return: 2.57%
• Inflation impact: If inflation is 5% and the G Fund returns 2.57%, your purchasing power declines by 2.43% annually.

Additionally, retirees who rely on withdrawals from the G Fund risk income loss over time.

Enhancing Lifecycle (L) Funds

Lifecycle Funds automatically adjust asset allocation as retirement approaches, but they have inefficiencies:

1. Exposure to underperforming S, I, and F Funds.
2. Unnecessarily complex allocations when a simple C/G Fund mix performs better.

Optimized Lifecycle Fund Strategy: Instead of relying on TSP's pre-set allocations, consider customizing your mix:

This simplified approach allows for better risk management and greater long-term growth.

Maximizing TSP with Withdrawal/Transfer Options

The TSP Modernization Act of 2019 now allows federal employees over 59.5 to make multiple withdrawals (up to 4 per year) and transfer funds into an IRA or Roth IRA without penalties or fees.

Why consider a transfer?

• TSP is designed for savings, not optimized for withdrawals
• G Fund and F Fund provide limited returns, reducing long-term retirement income
• Private sector IRAs and Roth IRAs offer more flexibility, better returns, and tailored income strategies

TSP Maximization: Taking Control of Your Retirement

We strongly encourage employees over 59.5+ or retired to consider a strategy called TSP Maximization—moving some or all of their TSP balance into a private sector IRA/Roth IRA. This does not affect ongoing TSP contributions or government matching but allows for more strategic retirement planning.

To help you navigate your options, we host a live 1-hour nationwide webinar, “TSP Maximization”, where we break down the top two IRA/Roth IRA investment options available. These strategies include:

• Guaranteed no-loss investment options
• 8%+ average returns over the last 10 years
• 10% cash match/bonus options
• Low fees & flexible withdrawal options

Join Our Free Webinar

Click the link below to register for our next webinar “Maximizing Your TSP” and take the next step toward securing a more confident retirement.

Maximizing Your TSP!

Thurs., March 27 at 1 p.m. ET

Free 60-minute webinar with 30-minute Q&A following

• Government downsizing updates and benefit qualifications.
• Understanding the TSP basics.
• Understanding the C, S, I, F, and G Funds
• Learning about contribution limits and strategies. Roth vs. Traditional. When/how to withdraw. Plus more!
• How to maximize TSP utilizing the Age-Based In-Service withdrawal.
• Forms needed for retirement: The forms you need for retirement vary depending on your specific situation and the retirement system you’re a part of within the federal government.
• Interactive Q&A session

Click Here To Register

*Disclaimer: FEBA is not affiliated, endorsed, or hired by the federal government.

*Disclaimer: This article is not intended to be personal investment advice. These are general concepts and historical data. We cannot make any personal investment recommendations without understanding your personal financial situation, goals, and risk tolerance.

**Available in most states. Average annual return based on last 10 calendar year historical market data. Exact fees and limitations will be disclosed based on company and state availability.