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

Jan 20, 2022 Close Change YTD*
L Income 23.1883 -0.0487 5.42%
L 2025 11.9651 -0.0472 9.75%
L 2030 42.1747 -0.2353 12.37%
L 2035 12.6589 -0.0777 13.43%
L 2040 47.8799 -0.3207 14.51%
L 2045 13.1065 -0.0942 15.40%
L 2050 28.7010 -0.2205 16.34%
L 2055 14.1138 -0.1333 19.90%
L 2060 14.1136 -0.1332 19.90%
L 2065 14.1134 -0.1332 19.90%
G Fund 16.7510 0.0008 1.38%
F Fund 20.4699 0.0225 -1.46%
C Fund 67.7127 -0.7512 28.68%
S Fund 74.7229 -1.1189 12.45%
I Fund 38.6721 -0.1973 11.45%
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.