TSP SAFETYNET SYSTEM

TSP MANAGEMENT

TSP System tsp management 2_120632071The foundation to the success of the TSP SafetyNET system is its unique approach to investment management. With our TSP management team keeping a watchful eye on scientific and technical indicators, the system helps individuals move out of the market when danger seems to be approaching.

This scientific technical TSP management system allows individuals to achieve higher financial profits mainly because when your TSP investments are protected from big losses instead of relying on huge profits.

With our expert TSP management team providing you with newsletter alerts when danger is approaching, your TSP can grow as you work with our professional staff.

It has been proven that one approach to TSP growth is safeguarding your portfolio against financial losses. The reason is because once your TSP has lost principal, there is a smaller amount of money to work with. The miracle of compounding works against you. It is for this reason that using professional TSP management is so important.

While the TSP SafetyNET program does not immediately move funds out as the markets start to decline, the loss is typically minor compared to a buy and hold strategy. TSP SafetyNET program managers have a system to identify when it is time to move from high risk and move to safety.  If you experience a small loss (as an example, 5% off the high) it is much easier to recover from that loss than if your portfolio experiences a high loss (20-50%) before the market starts moving up again. Recovery is much more difficult with large losses because the profits required to recover from the large loss must be significantly larger just to get back to where you started.

Many TSP participants have found that after a significant loss they feel they are digging out of a hole using a small shovel. This requires more work to recover. For instance, when experiencing a 50% loss in your TSP – your account will need a 100% gain to get back to where your TSP began before the loss.

Instead if a managed TSP account moves your TSP away from C, S, I or F funds during early losses and then TSP SafetyNET managers move your TSP back in when indicators signal it is time to return, your funds have the opportunity to grow faster.

To put it a different way, the investment game is won with a strong defense and hitting singles and doubles instead of depending on hitting homeruns to win the game.

 

TSP SafetyNet safeguards your TSP

 

So how exactly do you manage your TSP?

Unfortunately most Federal workers do not understand how important it is to safeguard their TSP during hard times in the markets. This is why around 45% basically “buy and hold” in the G fund. In the past, the G fund has hardly kept pace with inflation, so you can either tread water or rarely move forward. This is simply not the most effective way to manage your TSP both for protection and growth.

 

REGULAR MONITORING, QUICK RESPONSE TO MARKET CHANGES 

Our Because the stock market is similar to a big ship and doesn’t normally turn on a penny, commonly stocks follow the trend until there are actual signs that a change is certain. The SafetyNET programs we endorse are extremely sensitive to these signs and when indicators are powerful enough, the system alerts managers that it is time to change your TSP investments to either defend from losses or take advantage of gains in an upmarket. The principal goal is to secure your TSP investments from losses the system is sensitive to downturns.

Usually regular monitoring and trades based on a solid management system result in higher rates of return.

Most Federal workers understand the Thrift Savings Plan limits the number of allocation changes to two times a month (With exclusion where a manager can still allocate your funds into the G fund even after two changes in one month if necessary). 

TSP SafetyNET managers continuously work on discovering the “sweet spot” where the rate of returns are increased but still fall within the two monthly allocation change limitation.  

RELATIVE STRENGTH

The major point to remember is that SafetyNET managers use a sophisticated system to manage your TSP for safety from loss and helping your account grow in up markets — the goal is to have the system work even in volatile markets to enhance your financial freedom when you retire.

Risk tolerance

TSP system page Risk tol 40 week ma 1_224694784An important part of the TSP SafetyNET system is the essential step of identifying how every single reader is comfortable with having risks with their retirement funds. This is a very personal part and there are many various things to take into consideration when looking at your own ability to handle risk in order to manage your TSP effectively. We understand that everybody has a unique approach in their TSP investment philosophy as to how they deal with the overall question of risk as opposed to reward. This is affected by many things such as personality, financial needs, family size and wants, retirement plans/goals and the period of time they are in their career. We understand that there is actually no right or wrong technique but it is essential to respect the value of risk tolerance when developing the management of TSP investments. We use a more accurate analysis in that we have 5 different risk tolerance categories whereas other TSP investment systems either neglect the whole subject completely or use 2 or 3 categories. We decided to use 5 categories to help our readers “fine tune” their own personal approach. The scoring from the questionnaire assists placing an individual into the most suitable group which best identifies every individual’s risk tolerance philosophy. These groups are:

 

  • Conservative
  • Moderate
  • Growth

There are lots of personal factors that go into identifying your own category and finally you will be the final judge. After you identify the ideal group for your own personal situation, we will send out TSP allocation suggestions that are most suitable for your own ideas on managing risk versus reward. You have the opportunity to redo the questionnaire and to change your category whenever you want to choose and we will adjust our suggestions to your modified group. In fact we suggest that all of our readers overview the questions every year and make changes to the TSP management approach. Since we appreciate that everyone has personal needs in their life circumstances, we have developed a system that values and accommodates every individual needs.

TSP Web Account

A new feature of the TSP SafetyNET system is the web account. Each subscriber will have their own web account in which they will have instant access to their specific TSP allocation for their own risk tolerance group. This is accessible at any time they want from any mobile device including their smartphone. This new feature streamlines access to the most current information instantaneously as the allocation changes are made. One of the important features our system is making allocation changes quickly to respond to market changes with a minimum of lag time. Whenever a change is made our subscribers are sent several emails notifying them of the change so that they don’t miss out on the window of opportunity. This new web account makes this process more efficient so you can grow your TSP faster.