The Smart Way to Grow Your TSP

One of the questions I hear most often as a financial advisor is, “What’s the best way to grow my retirement savings?”  

For federal employees like you, that means making the most of the Thrift Savings Plan (TSP). I frequently hear, “How can I double my TSP?”—and it’s a smart question.

The good news? You don’t need a fancy financial calculator or a Wall Street degree. There are three powerful levers that every federal employee can control to maximize their TSP growth: asset allocation, contributions, and time. 

Step 1: Asset Allocation – The First Power Move 

One of the biggest factors in growing your TSP is how you allocate your investments across the funds. Don’t just stick with the default L Fund—it’s often too conservative. Most retirees need a more growth-focused approach to truly maximize their long-term returns. 

• The C Fund (S&P 500) has averaged about 10% annually over the long haul—but it dropped 38% in 2008. 
• The S Fund (small and mid-cap companies) has also averaged near 10%, which means by the Rule of 72, your balance could double in about 7 years (72 ÷ 10 = 7.2). 
• The G Fund, on the other hand, is the “safest” fund—but it averages around 2%. At that rate, your money would take 36 years to double (72 ÷ 2 = 36). 

Here’s the kicker: If inflation runs at 4%, the cost of living doubles every 18 years. If you retire for 30–40 years (like my own grandfather did as a retired Navy Mustang officer), you may see prices double twice in your lifetime. 

That’s why your allocation can’t be just about safety. You need growth that outpaces inflation. 

Not sure where to start adjusting your asset allocation? This is where working with a financial advisor who specializes in federal retirement planning can really help. 

Step 2: Contributions – You Control This! 

The second lever is simple: how much you put in. 

• 10% of income → the bare minimum. 
• 15% → the sweet spot for most federal employees. 
• 20% → the gold standard. I’ve never met a federal employee contributing 20% who wasn’t prepared for retirement. 

But here’s the sad truth: Some employees don’t even contribute enough to get their full agency match. That’s like leaving free money on the sidewalk. 

My advice: follow the “Half for me, Half for future me” rule. When you get a raise, split it—half goes to your lifestyle today, half to your TSP. 

Don’t let that raise disappear like Chevy Chase’s Christmas bonus—which was already spent before it arrived! Instead, lock in a savings habit that your future self will thank you for. 

Step 3: Time – The Unsung Hero 

The third piece is the one most people overlook: time. 

• If return is one side of the coin, time is the other. 
• Tony Robbins says: “People overestimate what they can do in a year but underestimate what they can do in a decade.” 
• The magic of compound interest shows up in 5–10 year stretches, not overnight. 

The mistake I see too often: Employees who feel behind say, “I have to take more risk to catch up.” That’s the gambler’s mentality—and it rarely ends well. 

The smarter move? Max your contributions, keep your allocation disciplined, and let compounding work for you. Think of it like planting a tree—you don’t dig it up every day to check the roots. You water it, give it time, and let growth happen.

Final Thoughts – Stay in Control, Not in the Dark

You can’t control elections, interest rates, or the economy. But you can control your asset allocations, your contributions, and how much tim eyou give your money to grow.

Focus on those three, and you’ll give yourself the best chance of doubling your TSP – and enjoying a retirement where you truly Sleep Well At Night.

If you’d like help tailoring an allocation strategy to your financial goals, our team specializes in working with federal employees just like you everyday. Text SWAN to 1-800-848-8768. WE’d welcome the opportunity to sit down one-on-one with you, review your TSP allocations, and provide you with a comprehensive federal retirement report.

If you have federal retirement questions we haven’t answered, email us at info@swan-capital.com. Feel free to check out our other sources, including videos and free guides to help you finish strong!

Ready to see how your TSP stacks up?

Text SWAN to 1-800-848-8768 for a free Federal Retirement Report, or schedule a complimentary consultation now!

COVERING OUR TAIL FEATHERS

Welcome to Swan Capital, LLC (“SWAN”), your friendly neighborhood Registered Investment Adviser (“RIA”). Now, while we may have a fancy title, remember that our registration doesn’t guarantee we’re flying high above the rest. This communication hasn’t been blessed or verified by the United States Securities and Exchange Commission (SEC) or any state securities authority. At SWAN, we believe in giving you personalized investment advice as unique as a swan’s graceful glide. We work with clients in their own states, making sure to play by all the regulatory rules or find the right exceptions. But here’s the scoop: all investments come with risks—like a wild swim in the pond—so no investment strategy can promise profits or protect you from the occasional splashdown. Just remember, past performance is like a cozy old story; it might be nice to reminisce about, but it doesn’t promise what’s coming next. 

SWAN Capital, LLC is an independent firm and is not affiliated with, endorsed by, or sponsored by the Federal Employee Retirement System (FERS) or any government agency. 

Thanks for gliding along with us at SWAN! We’re here to help you soar to new financial heights while ensuring you can truly Sleep Well At Night!