What is the Thrift savings plan?
Retirement savings and investment plan for Fedrral employees
How many TSP investment funds are there?
Government Securities investment
Fixed Income Index Investment
Common Stock Index Investment
Small Capitaliztion Stock Index Investment
International Stock Index Investment
Factors that will affect your TSP investment
3.Comfort with or aversion to risk.
4.Level of desire for diversification
5.Potential returns of your investment (6)Effects of inflation and taxes
What is the purpose of investment objective?
Purpose of savings should influence on how you should invest your money.
What factors should you consider in your investmemt objective?
1. Extent (long or short term) to which you will rely on your TSP, time horizon maybe 20 years or more) and expectent financial needs.
What is your Time Horizon?
Number of years you have until you will need to withdraw your TSP account
What is Risk Tolerance?
BAsically, the comfort level at which you invest your money. The greater the potential of large returns, the higher the risk of large losses. Less risky investment, smaller returns.
The G Fund is invested in what type?
Short-term non-marketable US Treasury securities guarenteed by the full faith and credit of the US government.
The I fund is invested in what type of index fund?