Could Your TSP Portfolio Withstand a Bear Market

By September 18, 2018Benefits, Retirement, TSP

According to J.P. Morgan Asset Management, Guide to the Markets and Since March of 2009, the S&P 500 has gained over 300%.  Unfortunately, when long-run bull markets end, the decline can be dramatic.  In fact, the average bear market return is -45%.  Are you one of those that are still in the Risky Funds within your TSP? Can you afford for your $100,000 invested balance to become $55,000?  Better yet your $250,000 invested balance to become $137,500?

Plus, it can take a significant return to recover from the loss.  If today’s bull market turns bear, and you are nearing retirement, do you have time to make up for a large loss?

First, what is a bear market?  A bear market is defined as a 20% or more decline from the previous market high.  The bear return is the from the peak down to where it starts to return gains again.  You can lose thousands in just a short amount of time, but takes months or sometimes years to gain it back.

During your Federal Retirement Review with one of our Consultants, make sure you ask them how you can help Protect your Thrift Savings Plans, while still have a reasonable rate of return, and I’m sure you will be happy with what they tell you.

To Schedule your Personalized Federal Retirement Review – Contact us Today.

 

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