These five simple but important rules are the keys to success in maximizing the lifetime retirement income you’ll enjoy from your TSP account:

1. Understand the Way it Works. As a participant, it is incumbent upon you to know, and clearly understand the TSP rules, procedures and options. Bookmark www.tsp.gov in your browser and spend whatever time you need there learning the ropes. Don’t forget to pay attention to the various publications available on the site through the Forms & Publications link at the top of every page.
2. Maximize your contributions. Do this by saving for retirement to the TSP before you save anywhere else. Thinking about saving to an IRA or Roth IRA? Not until you’ve maxed out your TSP contributions. If you’re saving for something other than retirement, then it’s OK to save elsewhere. It doesn’t make sense to contribute to the TSP for a car purchase, a new home, wedding or college tuition, but when it comes to saving for retirement, the TSP should come first.
   If you have a Traditional IRA, or an inactive 401k, 403b or other employer sponsored retirement plan account, you should transfer its contents, as allowed, into the TSP, as allowed.
3. Leave your money in the TSP as long as possible. Spend from your other accounts before you begin to invade your TSP account. Among the other benefits of the TSP, like ease of management, low cost, risk-efficient and well-diversified investment options, you’ll continue to enjoy access to the G Fund. The G Fund offers a value proposition not available anywhere else. It’s like “super cash”. While this might not seem very important when you are young, it will become more useful – and valuable – to you as you age.
4. Select the right asset allocation model. Diversifying your holdings among stocks, bonds and cash is the primary way you’ll avoid unnecessary risk. If you’re not sure what to do, then your best bet is probably to pick the L Fund that most closely corresponds to your life expectancy. This isn’t the ideal approach, but it’s probably the best you’ll do without employing more advanced techniques.
5. Rebalance regularly. Things change and you must make adjustments to accommodate these changes. Rebalance your account to the appropriate fund allocation at least once per year, and no more than 4 times per year. Don’t try to pick the best times to do it, just set a regular schedule and stick to it. Pay attention and you’ll catch problems early, manage your account toward your goals, and give yourself a better chance to succeed without the cost of big mistakes.

Written by Mike Miles
For the Federal Times
Publication February 2020

Articles:

• The Keys to TSP Success – 02/15/2020
• Common Retirement Planning Mistakes to Avoid – 11/17/2019
• Synthesizing a Selective TSP Withdrawal – 10/27/2019
• Don’t Expect Your Long-Term Care Insurance to Pay – 09/16/2019
• Think Carefully Before You Prepay That Mortgage – 08/06/2019
• Don’t Forget About Inflation – 04/16/2019
• Accounting for TSP Distributions – 02/13/2019
• When NOT to Contribute to the TSP – 11/12/2018
• L Funds Change Misses the Mark – 10/14/2018
• The 7 Attributes of a Good Investment Portfolio – 09/01/2018
• The TSP’s Funds are Your Best Choice – 08/29/2018
• Five Questions to Ask Your Financial Advisor – 06/29/2018
• Handling Market Volatility – 04/16/2018
• Maintain a Disciplined Approach to Managing Your TSP Account – 02/01/2018
• Balancing Risk – 11/01/2017
• TSP Lump-Sum Withdrawals – 10/01/2017
• Finding the Best TSP Strategy – 09/01/2017
• Is the G Fund Safe? – 08/14/2017
• The Value of the FERS Annuity COLA – 06/12/2017
• The Value of Indifference – 05/08/2017
• Ignore Your TSP Account’s Personal Rate of Return – 02/13/2017
• Investing for the Trump Presidency – 12/05/2016
• Wells Fargo and You – 11/07/2016
• Trump, Interest Rates, and Your TSP Account – 10/01/2016
• Life Insurance Tips – 09/12/2016
• Long-Term Care Insurance – What to Do? – 08/08/2016
• Don’t Fall for TSP Timing Advice – 08/08/2016
• The Fight for Your TSP Account Continues – 06/13/2016
• Caveat Emptor the 4 Percent Rule – 05/09/2016
• Partial Lump Sum TSP Withdrawals – 04/11/2016
• How to Take a Selective Withdrawal Your TSP Account – 03/14/2016
• Retirement Investing is a Marathon (Not a Sprint) – 02/08/2016
• Diversification is Essential to TSP Success – 01/11/2016
• Pay Attention to the Big Stuff – 12/07/2015
• The War Over Your TSP Account – 11/09/2015
• The Dollar Cost Averaging Myth – 10/05/2015
• Dealing with Market Volatility – 09/14/2015
• TSP: Don’t Speculate – Navigate. – 08/10/2015
• Traditional Versus Roth TSP Contributions – 07/06/2015
• The Value of the TSP’s Low Investment Costs – 06/08/2015
• Asset Allocation and Hedging in the TSP – 05/11/2015
• A Misguided Proposal – 04/06/2015
• More Investing Mistakes to Avoid – 03/09/2015
• Investing Mistakes to Avoid – 02/09/2015
• There Are Foxes in the Henhouse – 01/01/2015
• The Characteristics of a Good Investment Portfolio – 11/17/2014
• Don’t Let Rational Fear Lead to Irrational Action – 10/27/2014
• Why Market Timing is a Sucker’s Bet – 10/06/2014
• It’s Time to Face the Truth About FERS – 09/08/2014
• The Ideal TSP Allocation – 08/11/2014
• The Value of Patience in Investing – 07/14/2014
• What TSP Investors Should Worry About – 06/09/2014
• Investment Advice You Can Trust – 05/05/2014
• Investing is Hard, and a Lifetime Job – 04/07/2014
• The TSP’s Funds Are Hard to Beat – 03/10/2014
• The Reason to Hold the F Fund – 02/10/2014
• The Four Keys to TSP Success – 12/13/2013
• Focus On The Future, Not The Past – 11/18/2013
• Tapping TSP Before 59 ½ – 11/04/2013
• A Trust Test For TSP ‘Advisers’ – 10/07/2013
• New TSP Calculator, Same Old Problems – 09/23/2013
• Navigating Bias Toward TSP Stocks, Against Bonds – 08/05/2013
• Understanding Risk – 08/05/2013
• Trying to Time the Market is Always a Bad Strategy – 06/10/2013
• How to Be a Good Pension Fund Manager – 05/20/2013
• Furlough Probably Wouldn’t Harm Retirement Savings Much – 05/04/2013
• Keep Bonds in Your Portfolio to Guard Against Stock Losses – 04/29/2013
• When Unexpected Bills Upset Your Plans – 04/01/2013
• Don’t Overlook TSP for Lowest-Cost Investment – 02/04/2013
• TSP Offers Good Balance of Investment Options – 12/10/2012
• Two Ways to Diversify and Reduce Investment Risk – 11/26/2012
• ‘Seat of the Pants’ Investing is a Big Mistake – 10/22/2012
• Two Ways to Fail With TSP and One Way to Succeed – 10/08/2012
• A Good Time to Replace Some F Fund with G Fund – 09/24/2012
• Four Methods to Help Portfolios Beat Expectations – 09/10/2012
• Readers’ Questions Show Early-Out, TSP Concerns – 08/20/2012
• Professional Liability Insurance Can Help Protect Savings – 08/06/2012
• There are No Certainties in Retirement Planning – 07/16/2012
• Prepare Now for Possible Hike in Pension Contribution – 06/25/2012
• Disability Insurance Could Help Stem Financial Losses – 06/11/2012
• Avoid Common Mistakes to Optimize Retirement Income – 05/07/2012
• No ‘Magic Number’ Target for Retirement Savings – 04/16/2012
• Financial Checkups: Once is Not Enough – 03/19/2012
• An Early Look at TSP’s Roth Option – 02/20/2012
• Buyout or Keep Working: You Must Weigh Both ‘Deals’ – 01/23/2012
• Invest in All TSP Funds to Hedge Against Risk – 12/12/2011
• Ideas That Can Boost Your Retirement Income – 11/28/2011
• Find the Right Insurance to Fit Your Financial Plan – 11/07/2011
• F Fund Investors Should Move Some Funds to G Fund – 10/24/2011
• Inflation-Adjusted Life Annuity a Valuable Option – 10/10/2011
• Managing Your Pension Fund Can Seem Like a Full-Time Gig – 09/20/2011
• How to Avoid TSP Early Withdrawal Penalty – 09/12/2011
• Managing TSP On Fear Usually Results in Loss – 08/22/2011
• Small Changes in Retirement May Have Big Effect on Some – 08/08/2011
• To Plan for Retirement, Estimate Your Spending Needs – 07/18/2011
• How Deficit-Cutting Plans Could Affect You – 06/27/2011
• Manage Risk Wisely by Rebalancing Accounts – 06/13/2011
• How Much Long-Term Care Insurance Should You Buy? – 05/23/2011
• Retirement Calculator Has Limited Value – 05/09/2011
• Set Your Withholding to Fit Your April Needs – 03/21/2011
• Too Many Workers Focus on One Aspect of Retirement – 02/21/2011
• L Fund May Prove Conservative in Planning Early Retirement – 01/24/2011
• Planning Ahead is Best Way to Avoid Unacceptable Risk – 12/13/2010
• Make the Most of Your TSP for 2010 Retirement Savings – 12/07/2010
• It’s About How Much You Save, Not Where You Save It – 11/29/2010
• Buy-And-Hold Strategy May Undercut Investment Goals – 11/08/2010
• Federal Long-Term Care Plan Should Be Top Option – 10/25/2010
• Reduce Risk by Diversifying Your TSP Investment – 10/11/2010
• Diversifying Can Help You Get the Most From Your Investments – 09/27/2010
• A Little Risk Can Help in the Long Run – 09/13/2010
• Irrational Behaviors Investors Should Avoid – 08/23/2010
• Use TSP Calculators at Your Own Risk – 08/09/2010
• Ponzi Schemes, Other Scams Target Federal Employees – 07/19/2010
• Know the Odds to Get the Upper Hand in Managing Fund – 06/28/2010
• Carrying Mortgage into Retirement Can Pay Off – 06/14/2010
• Take a Lesson from the Gulf Oil Spill: Manage Risk Wisely – 05/31/2010
• Keep a Balance Between Risk, Return – 05/17/2010
• TSP’s G Fund Has Unique Benefits – 05/03/2010
• Be Cautious When Stock Prices Rise – 04/05/2010
• Make Use of All Five TSP Fund – 03/08/2010
• ‘Lost Decade’ Lesson: Diversification – 02/08/2010
• Odds Favor Gains in Market – 01/11/2010
• Make the Most of Your TSP for 2010 Retirement Savings – 12/07/2009
• How Well Are you Managing Your TSP Account? – 11/23/2009
• Comparing Long-Term Care Plan – 11/09/2009
• Count On Skill, Not Luck – 10/26/2009
• New Long-Term Care Plan Offers Improved Benefits – 10/12/2009
• Can Your Savings Support Early Retirement? – 09/28/2009
• Shedding Some Light on Little-Understood L Funds – 09/14/2009
• Now’s the Time to be Aggressive – 08/24/2009
• Understanding TSP Annuities – 08/10/2009
• As Stocks Climb, Be Wary – 07/29/2009
• Mistakes to Avoid – 07/13/2009
• The Case for Index Funds – 06/22/2009
• Long-Term Care Policy Tips – 06/08/2009
• The Long-Term Care Dilemma – 05/25/2009
• Refinancing Your Mortgage May Protect Retirement Plan – 05/11/2009
• Dollar Cost Averaging and TSP – 04/27/2009
• Changes Ahead for Federal Long-Term Care – 04/13/2009
• Don’t Miss the Rebound – 03/30/2009
• The L Funds’ Drawback – 03/09/2009
• Exceptions to TSP’s 59½ Rule – 02/23/2009
• Check Life Insurance Plan – 02/02/2009
• Keep Lessons of 2008 in Mind – 01/12/2009
• Follow Strategy, Not Emotions – 12/27/2008
• Keep Investment Expectations Real – 12/22/2008
• Beware IRA Promotions – 12/13/2008
• Focus on Long-Term Goal – 12/01/2008
• Estimating Future Returns – 11/10/2008
• More Questions for an Adviser – 10/18/2008
• Expect Ups – And Downs – 09/29/2008
• Fear, Greed Trip Up Investors – 09/15/2008
• Voluntary CSRS Contributions Pay Off for Some – 07/21/2008
• Choose Long-Term Care Options – 07/07/2008
• Consider Long-Term Care Insurance – 06/16/2008
• ‘Roth’ Option Causes Confusion – 06/02/2008
• Change TSP Strategy Near Retirement – 05/19/2008
• Market is Not the Problem – 05/05/2008
• TSP Trade Limit is Wrong Move – 04/21/2008
• Choose TSP Strategy Wisely – 04/07/2008
• Choose TSP Strategy Wisely – 04/07/2008
• Use TSP Transfers Wisely – 03/24/2008
• Manage Your Pension Fund – 03/10/2008
• L Funds Have Drawbacks – 02/25/2008
• How to Improve Your After-Tax Results – 02/11/2008
• Market, TSP Declines Highlight Investment Risks – 01/28/2008
• TSP Limit is Wrong Approach – 12/17/2007
• TSP Limit is Wrong Approach – 12/17/2007
• Take Care in Planning for Your Early Retirement – 12/03/2007
• Coordinate Financial Investment Plans With Pros – 12/03/2007
• TSP Rollovers: Be Skeptical – 11/05/2007
• Setting the Record Straight – 10/22/2007
• Assess Retirement Income – 10/08/2007
• Tracking TSP Investments – 09/17/2007
• Tracking TSP Investments – 09/17/2007
• Timing is a Fool’s Game – 09/03/2007
• Calculating Early TSP Withdrawals Can Be Tricky – 08/20/2007
• Avoid TSP Withdrawal Penalty – 07/23/2007
• Retirement Planning Calculator is Disappointing – 06/18/2007
• One Year to Go: Plan How You’ll Take TSP Withdrawals – 06/04/2007
• Five Years to Go: Ensure Your TSP Balance Will Cover Withdrawal Needs – 06/04/2007
• When TSP Withdrawals Hurt – 05/28/2007
• Active Investment Management is Loser’s Game – 05/14/2007
• Active Investment Management is Loser’s Game – 05/14/2007
• An Annuity That is Worth a Look – 04/30/2007
• Investment Objectives Change Over Time – 04/09/2007
• Roth IRA vs. TSP: Pay Tax Now or Pay Tax Later – 03/12/2007
• Can You Afford to Retire? – 02/26/2007
• Risk Plays a Key Role in Retirement Planning – 02/26/2007
• Adding TSP Options: Be Careful What You Wish For – 02/12/2007
• How to Factor Inflation into Retirement Plan – 01/29/2007
• Financial Planning: Look at the Forest, Not the Trees – 01/15/2007
• Myths Are For Holiday Tales, Not Your Investments – 11/27/2006
• Hunting Down the Right Insurance – 11/06/2006
• A Few Good Reasons to Roll TSP Funds to an IRA – 10/16/2006
• Low Costs: Another Good Reason to Stick with TSP – 10/02/2006
• When Saving to Retire, Don’t Forget the Risks – 09/18/2006
• How New Law Affects Your TSP Beneficiaries – And You – 09/04/2006
• L Funds Show Value of a Diverse Portfolio – 08/21/2006
• Steer Your TSP Account to a Safe Landing – 08/07/2006
• Life Insurance or Long-Term Care? – 07/24/2006
• How Your TSP Can Work for Your New Lifestyle – 07/17/2006
• Law Helps CSRS Employees Save On Taxes – 06/26/2006
• How Does New Tax Law Affect Your Retirement Savings? – 06/12/2006
• How Pension Max Compares to Survivor Annuity – 05/29/2006
• Fine-Tuning Your TSP’s Balance of Risk, Return – 05/15/2006
• What to Expect From a Real Estate Fund in TSP – 05/01/2006
• What You Need to Know About New Long-Term Care Law – 04/17/2006
• How to Measure Investment Risk – 03/27/2006
• Not All Financial Planners Are Looking Out For You – 03/13/2006
• Early Retirees Have TSP Withdrawal Options – 02/02/2006
• Adding Funds May Not Improve TSP – 01/30/2006
• Long-Term Investors Should Look to Funds’ Future – 01/16/2006
• Invest Early, Often and Before Taxes – 12/12/2005
• TSP Boosts Retirement for FERS Employees – 12/10/2005
• Health Savings Account Can Save You Money – 11/28/2005
• It Pays to Invest Early in TSP – 10/24/2005
• TSP Boosts Retirement for FERS Employees – 10/10/2005
• Survivor Benefit a Smart Choice – 09/26/2005
• Tax-Free, Tax-Deferred Accounts – 09/05/2005
• Is Riskiest L Fund Aggressive Enough? – 08/22/2005
• Another Way to Use TSP’s New L Funds – 08/08/2005
• Another Way to Use TSP’s New L Funds – 08/08/2005
• Another Way to Use TSP’s New L Funds – 08/08/2005
• Integrating TSP in Your Total Investment Plan – 07/25/2005
• Know What to Expect from Your Investments – 06/26/2005
• Building Your Budget – 06/20/2005
• Are You Ready? Take a Realistic Look at Your Finances – 06/20/2005
• Find Your Best TSP Investment Strategy – 06/20/2005
• Market Timing Too Risky a Gamble For TSP Participants – 06/13/2005
• ‘Pension max’ May Not Be the Best Deal – 05/30/2005
• Best Way to Invest in TSP? There’s No Single Answer – 05/16/2005
• What a Real Estate Fund Would Offer – 04/25/2005
• The Pros and Cons of Rolling Your TSP Balance into an IRA – 04/11/2005
• S Fund Stocks Part of a Sound Investment Strategy – 03/21/2005
• TSP’s I Fund is Good Tool for Diversification – 03/07/2005
• How to Calculate Your Life Insurance Requirements – 02/28/2005
• Consider Risk, Cost in Professional Liability Coverage – 02/28/2005
• Disability Safety Net May Save Years of Financial Stress – 02/28/2005
• TSP is Best, But You Have Other Retirement Options – 01/31/2005
• TSP is Best, But You Have Other Retirement Options – 01/31/2005
• How Much Should You Save in Your TSP Account? – 01/17/2005
• C Fund a Wise Choice for TSP Investors – 12/13/2004
• Health Reimbursement Funds for Those Ineligible for HSAs – 11/29/2004
• Health Savings Accounts Add to Options – 11/15/2004
• TSP Annuities Can Be a Great Choice — Or Not – 11/01/2004
• TSP Annuities Can Be a Great Choice — Or Not – 11/01/2004
• How Much Should You Contribute to the TSP? – 10/18/2004
• F Fund Offers Diverse Portfolio for Bond Investors – 10/04/2004
• Direct Deposit Simplifies Savings Bond Investing – 09/20/2004
• G Fund is TSP’s Low-Risk Investment Option – 09/06/2004
• Be Prepared for Needs, Loss of Income in Case of Disability – 08/23/2004
• How Does OPM’s Plan Stack Up Against Private Plans? – 08/23/2004
• Plans Offer Different Levels of Access to Health Care – 08/23/2004
• Tailor Car Insurance to Your Needs – 08/23/2004
• Even Baseless Liability Claims Can Leave You Vulnerable – 08/23/2004
• FEGLI Offers Unique Benefits, Variety of Options – 08/23/2004
• When Buying Insurance, Basic is Best – 08/16/2004
• Weighing Your Long-Term Care Insurance Options – 08/02/2004
• A Range of TSP Withdrawal Options – 07/19/2004
• How Much Life Insurance Do You Need? – 06/28/2004
• TSP Loan Changes Raise New Questions for Borrowers – 06/14/2004