Long-term tips for your Thrift Savings Plan

Tom Trabucco, Director of External Affairs, Federal Retirement Thrift Investment Board

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Last week The New York Times reported the story of former bond salesman Gordon Murray. While battling a brain tumor, Murray realized there was a better way of investing long-term and co-wrote the book The Investment Answer.

Murray “realized that the best way to do it is to invest in index funds, diversify and invest for the long haul,” said Tom Trabucco, director of external affairs at the Federal Retirement Thrift Investment Board, in an interview with the DorobekINSIDER.

In other words, Murray promotes the kind of “passive” investment that is the Thrift Savings Plan, Trabucco said.

When markets shift dramatically, people have the urge to take out their money. However, people “must fight this urge,” Trabucco said.

He added that the best thing to do for your investment is to “contribute periodically, regardless where the market is.”

People who want to invest in a less risky fund can at anytime transfer to the G Fund, Trabucco said.

“You can always seek safety as many times as you want if you want to move small amounts, but you are restricted to two interfund transfers into the risky funds each month,” Trabucco said. “That should be plenty. Compared to other plans, it’s actually quite generous.”

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THRIFT SAVINGS PLAN TICKER

Jun 18, 2021 Close Change YTD*
L Income 22.8950 -0.0718 2.88%
L 2025 11.7475 -0.0782 5.61%
L 2030 41.3301 -0.3582 7.07%
L 2035 12.3983 -0.1179 7.71%
L 2040 46.8639 -0.4865 8.36%
L 2045 12.8274 -0.1425 8.91%
L 2050 28.0756 -0.3333 9.49%
L 2055 13.7453 -0.2025 11.70%
L 2060 13.7453 -0.2024 11.70%
L 2065 13.7452 -0.2024 11.69%
G Fund 16.6073 0.0007 0.53%
F Fund 20.8808 0.0657 -2.22%
C Fund 62.4507 -0.8275 12.61%
S Fund 82.8816 -1.0758 11.60%
I Fund 38.5980 -0.6987 10.58%
Closing price updated at approx 6pm ET each business day. More at tsp.gov
* YTD data is updated on the last day of the month.