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WCI #426: A Deep Dive into HSAs

White Coat Investor Podcast

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TSP Overview and Funds

  • The Thrift Savings Plan (TSP) is a good 401k option for federal employees and military members; consider using it if you have access.
  • The TSP offers five main funds: C fund (S&P 500), S fund (mid and small stocks), I fund (international stocks), F fund (total bond market), and G fund (treasuries with money market risk).
  • Combine the C fund and S fund in a 4:1 ratio to replicate a total stock market fund.
  • The G fund is unique, offering bond-like returns with principal protection, making it attractive during periods of rising interest rates.
  • L funds (lifecycle funds) are target retirement funds that automatically adjust asset allocation; they're suitable as a one-stop shop if the TSP is your only retirement account.
  • If you have multiple retirement accounts, consider managing asset allocation manually instead of using lifecycle funds.
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