I went to a FERS seminar today. I will probably go again tomorrow and take it twice. The instructor stated what I'm about to summarize below (She didn't have a specific article or piece of data, but I believe her. )
Two groups were studied . Apparently those who just put their money into TSP and left it alone, without constantly trading positions achieved a return close to 8% annually over a period of years.
Those who swapped positions had 1.7%
She then said, according to the Rule of 72. The 8% group doubled their money in 9 years while the 1.7% group did not and ended up much less of.
I've been thinking myself of just tossing it into Life Cycle ,60 F 20 S 20 C , or 50 F and 50G and just not looking anymore. Checking my TSP website every week or two or three days is stressful.
However its interesting to note ( I will ask her tomorrow for the source) what happened to these groups in 2008?
Going by this wouldn't it be better just to set it and forget it and go with a set mix--say 35 F 35 G 15 S 15 C - and checking back in several years?
Ideally, the study should be shared so that you can better determine the validity. That said, if you find watching the TSP stressful, by all means, go into the L fund.
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