Planning for retirement is more than "just allocations in the TSP”
When examining their TSP, most employees pay especially close attention to their asset allocation, and frequently fail to realize that the asset location is equally as important to their eventual outcome. Risk tolerance, time horizon, suitability, and market conditions should all be carefully considered when choosing funds, however tax strategies can have just as much impact on your net worth accumulated.
There are 3 important strategies to consider when reviewing your TSP: Asset Allocation, Asset Location & Asset Orchestration
1) Asset Allocation
2) Asset Location
Many Federal employees assume they should place all their assets directly into their TSP, and while that can be an effective approach, it's generally not wise to place all your eggs (assets) in one bucket. By placing your money in different locations or buckets (below), you can be much more flexible not only in retirement, but should you have a dire situation and need the money before you retire.
The number one fear of most employees is running out of money in retirement. If you've made the right allocations and you have your assets in the right buckets, then the final step is the orchestration -- the strategic disbursement of funds in retirement.