Thanks. I had found this article especially helpful in applying MPT: http://www.acorns.com/whitepaper/ I'm also a paid subscriber to TSP Pilot, which factors in multiple systems into its recommended portfolio allocation, including the Sharp Ratio (from the "father" of MPT).
But even TSP Pilot assumes contributions and allocations are made in the same proportions, and that subscribers will periodically re-balance allocations to match the current recommendation. No rationale for that approach to contributions or against any other approach is provided. I guess it must be obvious to most people, but it's not to me.
Is it possible that whatever mix of TSP funds you think will provide the very best long term return (for a given risk preference) is also the identical best mix funds to invest in over a very short time frame (i.e. every pay period)?
Or, as another person implied, after a few years into the TSP, does where you put $18k of contributions each year not make much of a difference on total TSP value, assuming you periodically re-balance?
Jim
On Thu, Oct 1, 2015 at 8:49 AM, gmbetz@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:
You might want to google Modern Portfolio Allocation for ideas and rationales.
MPA call for a diversified allocation. Even though TSP limits choices for allocation, a contributor can still overweight contributions to the fund he is underweight in allocation.
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Posted by: JM Bud <jmbud2@gmail.com>
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