Index funds & the TSP: Follow the money

Hundreds of thousands of federal workers and retirees have millions of dollars for their retirement nest egg in the C, Sand I funds. The C and S funds cover the U.S. stock market and have performed very well over the long haul. The I-fund tracks certain foreign markets which can be more lucrative —and volatile. But the question is what exactly is an Index-fund? And who picks which stocks are in them. And how much you invest in each individual stock every two weeks?

Most financial planners familiar with the federal TSP believe that employees and retirees should have a sizable chunk of their nest egg in the C and S funds. And there is also a place in their portfolio for the higher risk, higher reward I fund too.

Today on our Your Turn radio show we’ll be talking with financial planner Arthur Stein. He’s well known in the D.C. market and several of his federal clients are TSP millionaires. Today he tells us how they got there.