Frequently Asked Questions

Browse our FAQ below to see answers to commonly asked questions.

• What is the TSP Allocation Model?

  The TSP Allocation Model (TSP) is our premier Investment Model for Thrift Savings Plan investors. It’s designed to provide a complete portfolio management solution for people investing through their TSP accounts.

• How does the TSP Allocation Model work?

  The TSP Model dynamically switches between the G, F, C, S and I funds to achieve outstanding returns while exposing your portfolio to significantly less risk than traditional investment approaches. Learn More

• Who should use the TSP Allocation Model?

  Any federal government employee or member of the uniformed services who has or is eligible for a TSP account will benefit from following the TSP Allocation Model. The TSP Model will help you keep your investments in sync with changing market conditions.

• What role should the TSP Model play in my overall portfolio?

  The TSP Model is a complete portfolio management solution, designed to manage your entire TSP account. If you’re new to Model Investing, consider using it for only a portion of your account to get started. As you become more confident in the TSP Model’s performance, you can begin using it to manage your entire account.

• Where can I see the TSP Model’s historical performance?

  You can view the TSP Model’s historical backtested performance here. Pay special attention to the table of risk metrics, it’s important to understand that the TSP Model’s outperformance does not come as a result of taking on more risk. In fact, the TSP Model exposes your money to significantly less risk than traditional investment approaches.

• How does the TSP Model achieve such high performance?

  The TSP Model uses a completely different approach to investing than traditional portfolio management. Instead of splitting your money between stocks and bonds and staying invested regardless of market conditions, the TSP Model tracks the performance of each of the TSP funds and allocates the portfolio accordingly, transitioning between funds as they take turns leading the way higher. Learn More

• Where can I see the latest TSP Model recommendations?

  You can see the latest TSP Model recommendations here. Access requires a premium subscription.

• How do I use the TSP Model?

  Using the TSP Model is simple. Each month you will receive an alert when the latest TSP Model recommendations have been posted. Simply log in to your TSP account and make the appropriate changes to your allocations. Learn More

• I’m already retired, can I still use the TSP Model?

  Yes. People are living longer these days and it’s important that your money continues to work for you during retirement. Because the TSP Model has been able to generate higher returns than both stocks and bonds, and also avoid major losses during market crashes, we feel comfortable recommending it to investors of all ages. For more information on how to de-risk your portfolio during retirement, please see this article.

• Will I incur transaction costs while using the TSP Model?

  In our experience, no. The Thrift Savings Plan will allow you to change your allocations free of charge.

• What happens to the TSP Model if the stock market crashes?

  The TSP Model is able to recognize developing periods of stock market weakness and will typically move the portfolio to the F Fund during the early stages of a crash. This limits losses and is one of the primary benefits of the TSP Model. When the stock market begins to recover, the TSP Model will move back into the C, S, and I Funds.

• Does the TSP Model use the Lifecycle Funds (L Funds)?

  No. The TSP Model does not use the L Funds. Model Investing recommends that all investors avoid using target date funds due to their inherent problems.