Thirft Savings Plan (TSP) is for federal employees. The plan concsists of 6 funds. Please refer to this page for the fund description.
Since all of the funds are separately managed accounts, We use benchmark funds as proxies for candidate funds. The L funds, Lifecycle fund, are not used in this plan.
The G fund is a stand out fixed income fund that has had outstanding performance. Based on the description on this page, "The G Fund interest rate calculation is based on the weighted average yield of all outstanding Treasury notes and bonds with 4 or more years to maturity. As a result, participants who invest in the G Fund are rewarded with a long-term rate on what is essentially a short-term security. Generally, long-term interest rates are higher than short-term rates.' The key here is the 'short term security' with long term interest rate. Talk about the advantage of being employed by the federal government!
In MyPlanIQ, G Fund is modeled as money market fund (i.e. its NAV is always 1) with yields calculated as (5 year treasury yield 10 year treasury yield)/2. It has a sepcial designated symbol 'TSPGFUND'.
Based on one of our users, TSP allows 2 times of rebalances per month.
Investment options of Planiqbulldog Federal Employee Thrift Savings Plan rebalance monthly
| Asset Class | Ticker | Description | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||
Investment model portfolios
We provide two types of investment model portfolios for Planiqbulldog Federal Employee Thrift Savings Plan rebalance monthly participants. You can customize and follow a model portfolio in your plan account.
Types of portfolio strategies
- Strategic asset allocation portfolio: It invests in a diversified portfolio of multiple assets, buy-and-hold without frequently changing the asset allocation weights.
- Suitable: For long-term (more than 15 years, preferably more than 20 years), want to be tax efficient and can withstand interim drawdown or loss as high as 50% or more.
- Pros:
- Less error-prone
- Infrequent rebalancing or transactions
- Tax efficient for taxable brokerage investments
- Cons:
- Interim loss or drawdown can be substantial
- Possible low returns for an extended period, such as 10 years or longer
- Tactical asset allocation portfolio: it invests in a diversified portfolio of multiple assets, dynamically adjust stock and bond allocations to minimize losses during market stress.
- Suitable: For long-term (more than 10 years or preferably longer) capital. Investors are willing to rebalance as frequent as monthly.
- Pros:
- Reduce large interim loss or drawdown
- Less sensitive to investment entry point
- Likely to improve returns
- Cons
- Demand more frequent rebalancing or transactions
- Less tax efficient — more suitable in a tax-deferred account such as 401(k) or IRA
- Can experience a period of lower returns compared to a broad-based strategic allocation or a buy-and-hold benchmark, especially in some bull markets
These portfolios are proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation.
Let us know (Email us) if you need help to create a custom model portfolio for your plan.