If you recall from last year, I resolved to roll all my IRA assets BACK in the the TSP, based on the following facts and theories:

  1. (Fact) TSP will soon allow much more withdrawal flexibility,
  2. (Fact) I’m not smarter than the market,
  3. (Fact) TSP Lifecycle funds have the lowest fees of any target-date fund, and
  4. (Theory) TSP Lifecycle funds are the best target-date funds available based on their cash-equivalent fund (the G Fund).

… so how about #4?  Any way to prove this theory in to fact?

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The Alternative Answer: The Nontraditional Investments That Drive The World's Best-Performing Portfolios

The Alternative Answer: The Nontraditional Investments That Drive The World's Best-Performing Portfolios

Book Review: The Alternative Answer: The Nontraditional Investments That Drive The World’s Best-Performing Portfolios by Bob Rice.

Bob is the Alternative Investments Editor for Bloomberg TV and is the Managing Partner of merchant bank Tangent Capital, and serves on boards of investment management firms with over $2 billion of ‘Alternative’ assets under management.

The Alternative Answer is divided into multiple sections:

The Alternative Manifesto
Major Alternative Strategies
Major Alternative Structures
Higher, Inflation-Protected Income (Job 1)
Broadening the Base for Risk Reduction (Job 2)
Long-Term Growth Enhancement (Job 3)
Purchasing Power Protection (Job 4)
Big Picture
At the Dealership
References/Glossary

Manifesto:  There are four mandatory tasks for investments:

  • Job 1: Generate income that is greater than typical fixed income (bonds), with focus on income that rises with inflation.
  • Job 2: Reduce overall risk by diversifying broadly across different strategies and asset classes.
  • Job 3: Enhance long-term growth with opportunities that have more upside than traditional investments (stocks).
  • Job 4: Protect Purchasing Power from inflation, currency devaluation and panics.

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Thrift Savings Plan Guidance for Federal Furlough

Thrift Savings Plan Guidance for Federal Furlough

You all know GubMints is a big fan of the TSP.  There was lots of TSP info that got buried in the news cycle last week-  Some good, some not so good.  The not-so-good is that it appears TSP is preparing to duplicate some of the functions of the Census Bureau.

TSP released results of a 4-Year study of Participant Behavior and Demographics.

Here are the key findings of the 2006-2010 TSP study: Continue reading