TSPinvestor Basic April 2016 Allocations

The TSPinvestor Basic allocations for April 2016 are:

6% G Fund; 5% F Fund; 34% C Fund; 33% S Fund; 22% I Fund

These should be allocated prior to Apr 1, 2016 at noon EST.  The Plus and Apex allocations will be released on April 8, 2016.

To implement this allocation, login to your account and change the fund allocations (via interfund transfer) and your new contributions to the recommended percentage.  These take effect the same business day if done before noon Eastern Time, otherwise it will be the next day.

The TSPinvestor Basic is a nominal 12% annual return strategy, and is less volatile than the Plus and Apex.

Last month’s Basic performance was 0.7% – a small positive return.

TSPinvestor Basic = 0.7%

50% C & S = 7.5%

1/3 each in C, S & I = 7.2%

20% in each fund = 4.5%

G Fund = 0.1%

F Fund = 0.9%

C Fund = 6.8%

S Fund = 8.2%

I Fund = 6.6%

() – denotes negative returns

In evaluating the performance on a month-to-month basis it is important to consider they vary widely. It is better to evaluate the returns over the course of a year or two, or ten.

Apr 2016 Allocations Graphic

Cumulative Returns Since Nov 2015

  1. F Fund = 2.6%
  2. G Fund = 0.8%
  3. C Fund = 0.1%
  4. 20% in each fund = (0.8)%
  5. 50% in C & S = (1.4)%
  6. 1/3 in each C, S & I = (2.6)%
  7. S fund = (2.9)%
  8. I Fund = (5.0)%
  9. TSPi Basic = (5.9)%

TSPinvestor Plus and Apex Allocations for Mar 2016

The TSPinvestor Plus and Apex allocations for March 2016 are:

Plus: 4% G Fund; 10% F Fund; 24% C Fund; 62% S Fund; 0% I Fund

Apex: 100% S Fund

These should be allocated prior to Mar 9, 2016 at noon EST.

To implement this allocation, login to your account and change the fund allocations (via interfund transfer) and your new contributions to the recommended percentage.  These take effect the same business day if done before noon Eastern Time, otherwise it will be the next day.

The TSPinvestor Apex is a nominal 23% annual return strategy, and the Plus is a nominal 19% annual return.

Last month’s Plus performance was a gain of 7.9%, and the Apex gained 10.9%.

Overall the stock markets gained large returns, while the bond market slightly gained.  The allocations for the upcoming month appears to be a further investment in the small cap stocks (S Fund).

Here is a comparison of the various allocations and funds performance for January 2016:

TSPinvestor Plus = 7.9%

TSPinvestor Apex = 10.9%

50% C & S = 9.0%

1/3 each in C, S & I = 7.8%

20% in each fund = 4.7%

G Fund = 0.1%

F Fund = 0.0%

C Fund = 7.1%

S Fund = 10.9%

I Fund = 5.4%

() – denotes negative return (or a loss)

NOTE: These are like comparisons based upon allocations on the 9th of the month.

Mar 2016 Allocations Graphic

Cumulative Returns since Nov 2015:

  1. F Fund = 2.40%
  2. G Fund = 0.70%
  3. 20% in each = (3.53)%
  4. C Fund = (4.91)%
  5. TSPi Plus = (6.54)%
  6. 50% in C &S = (7.05)%
  7. 1/3 each in C, S & I = (7.07)%
  8. I Fund = (7.17)%
  9. TSPi Apex = (9.23)%
  10. S Fund = (9.23)%

Beer & Wings

I have a bet — beer & wings — riding upon the performance of my TSPinvestor Plus performance vs. my friend’s previous TSP investment strategy. A friendly wager on whose strategy works best.

On the 9th of every month it’s time to owe up to who buys — and for the past couple months it’s been me.  His previous strategy was 15% G, 50% C, 25% S and 10% I.  Now he’s invested in the TSPinvestor Plus (as am I) and I’ve been paying. This month I believe will be his treat.  But the numbers will tell for sure tonight/tomorrow.  With the S Fund up significantly since Feb 8, and the Plus recommendation for 50% S, I’m hoping anyway. For Feb 2016 he won by -4.1% to -5.3%; Jan 2016 he won -6.0% to -7.0%; for Dec 2015 it was a tie – both gaining 1.7%.

But whoever pays, can’t go wrong with beer & wings at happy hour.

In looking at a new investment strategy such as TSPinvestor’s allocations, or any other one, it’s best to compare to other strategies, including the one you’ve been using, to see which performs best.