Maximized TSP Catch Up Earlier in Year for Increased Returns

Printable View

12-20-2017, 06:55 PM
skobydog

Maximized TSP Catch Up Earlier in Year for Increased Returns

I want to put the maximum $18,500 this year into my TSP.

I also want to put in the $6,000 catch up.

If I can afford it is there any reason not to try putting in the catch up earlier to get it into the market earlier? In other words, rather than spread it out over the year I can put it the first few months so it will be in there earlier. Any thoughts? thanks
12-20-2017, 07:14 PM
nnuut

Re: Maximized TSP Catch Up Earlier in Year for Increased Returns

Quote:

Originally Posted by skobydog

I want to put the maximum $18,500 this year into my TSP.

I also want to put in the $6,000 catch up.

If I can afford it is there any reason not to try putting in the catch up earlier to get it into the market earlier? In other words, rather than spread it out over the year I can put it the first few months so it will be in there earlier. Any thoughts? thanks

I wish I had done that!! But I was CSRS, no matching and such.
12-20-2017, 08:47 PM
skobydog

Re: Maximized TSP Catch Up Earlier in Year for Increased Returns

I ended finding out the information online. I guess this would be called "front loading" by putting larger amounts earlier in the year to potentially maximize returns. There is a higher risk doing this but the reward outweighs this. So putting in a larger amount in catch up earlier in the year should yield more gains than spreading this out evenly throughout the year.

I suppose one could do it with the traditional TSP (put larger amounts earlier in the year and smaller later) on as long as you make sure you're not maxing out contributions prior to year end.

Again, a bit more risk but (usually) higher returns.
12-21-2017, 12:47 AM
evilanne

Re: Maximized TSP Catch Up Earlier in Year for Increased Returns

Quote:

Originally Posted by skobydog

I want to put the maximum $18,500 this year into my TSP.

I also want to put in the $6,000 catch up.

If I can afford it is there any reason not to try putting in the catch up earlier to get it into the market earlier? In other words, rather than spread it out over the year I can put it the first few months so it will be in there earlier. Any thoughts? thanks

Just make sure you are able to max out the regular contributions by end of year (a requirement for catch up) and you can strategically front load, invest at higher level on weakness, based on seasonality or whatever strategy that works best for you. Agree with others on ensuring you get the match throughout the year.