Is tsp rebalancing every day

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smoghog4
Posts: 9
Joined: Sun Aug 07, 2011 9:36 am

Is tsp rebalancing every day

Post by smoghog4 »

Is tsp rebalancing daily to the investment mix you choose?

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Scarfinger
Posts: 726
Joined: Mon Jan 30, 2012 12:00 am

Re: Is tsp rebalancing every day

Post by Scarfinger »

smoghog4 wrote: Mon Jun 13, 2022 8:39 am Is tsp rebalancing daily to the investment mix you choose?
No. Rebalance is done by you. For example I am 20% G, 30% C, 30% S and 20% I. As the stock market goes up and down those percents will change over time as one fund does better than the other. You can call this... the funds get out of balance. You can set your own parameters for rebalancing. You could rebalance once or twice a year. At least rebalance once a year is recommended by experts. Or you could use a percentage to determine when to rebalance. So if your fund is say 5% over or under you original investment mix, you could rebalance.

I rebalanced today just to use the site and get familiar with it. My G fund had become 23% and my stock funds where down a 1% of 2%. So I rebalanced to my original 20/30/30/20 mix. You want to use the first option "change your investment mix" at the TSP. This gives you 2 options, to change your mix, allocations or both.

By rebalancing, it forces you to sell high and buy low. Every investors dream.

***Now... if you are in a "target date fund". They do rebalance because it is a glide path fund. Not sure if it is daily or how it rebalances but you do not have to do anything. The fund balances itself.

Good Luck!
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation of

haywoodkb
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Joined: Mon Aug 18, 2014 9:53 am

Re: Is tsp rebalancing every day

Post by haywoodkb »

If you use the Lifecycle Funds, they rebalance automatically every day.

smoghog4
Posts: 9
Joined: Sun Aug 07, 2011 9:36 am

Re: Is tsp rebalancing every day

Post by smoghog4 »

That is how it used to be, however I am seeing my mix stay the same even though I am losing share value it seems on the new tsp that it rebalances daily. Even though we’ve dropped 10% over the last week or so in s fund my % in that fund has not dropped however my dollar amount has

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Scarfinger
Posts: 726
Joined: Mon Jan 30, 2012 12:00 am

Re: Is tsp rebalancing every day

Post by Scarfinger »

smoghog4 wrote: Fri Jun 17, 2022 3:42 pm That is how it used to be, however I am seeing my mix stay the same even though I am losing share value it seems on the new tsp that it rebalances daily. Even though we’ve dropped 10% over the last week or so in s fund my % in that fund has not dropped however my dollar amount has
That is how it should be working. It rebalances daily keeping you in the same % allocations of the 5 funds you use. It is essentially keeping you "In Balance" with the same allocations percentages.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation of

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Fund Prices2022-08-17

FundPriceDayYTD
G $17.00 0.01% 1.55%
F $19.02 -0.54% -8.94%
C $65.15 -0.71% -9.44%
S $69.92 -1.76% -16.21%
I $33.69 -0.76% -14.58%
L2065 $13.09 -0.87% -12.03%
L2060 $13.09 -0.87% -12.03%
L2055 $13.09 -0.87% -12.02%
L2050 $26.93 -0.76% -10.29%
L2045 $12.36 -0.71% -9.60%
L2040 $45.40 -0.66% -8.84%
L2035 $12.07 -0.61% -8.00%
L2030 $40.47 -0.55% -7.11%
L2025 $11.66 -0.38% -4.78%
Linc $22.99 -0.23% -2.10%

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