Military Finance Report: How to Make More Money with TSP

Wednesday, June 19, 2013

How to Make More Money with TSP

You can change the amount you invest in the TSP by going to https://mypay.dfas.mil (most users use the CAC login and will need a .mil computer).  You can either enter a percentage amount to invest in the Traditional TSP or you can enter a dollar mount to invest in the ROTH TSP.

Your money will automatically invest into the "G" Fund and you will have to log into www.tsp.gov to actually change the allocation of the money that is donated.  To make more money with TSP you will need to change the allocation out of the "G" fund.  The more risk you can tolerate, the more you should move out of the "G" fund and into the stock funds.  I recommend to always have money in the "C" fund.

Since inception of the funds, the "G" fund has returned 5.69% annually versus the "C" fund's 9.5%.  In the investment world, having all your money in the "G" fund and losing out on the extra return is a LOSS of money.  We call it an opportunity loss because you had the opportunity to earn the money but didn't by investing in the "C" fund.  So to make more money with the TSP, you will need to log onto www.tsp.gov and change your asset allocation out of the "G" fund.

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