The Retirement “Split Move” That Could Save You 6 Figures

June 13, 2025

Lifecycle (L) Funds are marketed as smart, balanced, and stress-free.

But there’s one problem: they can often dilute your gains to avoid losses depending on the market environment—and that can cost you big over a 20+ year retirement.

A solution for Feds who want to maximize returns? The Barbell Strategy.

It’s simple, proven, and adaptable to the unique strengths of your TSP.

Here’s how it works:

You split your contributions between:

  • The G Fund—guaranteed, no-risk stability

  • The C/S/I Funds—your high-growth engines

One half plays defense. One half plays offense.

Together, they create a powerful balance of protection and potential.

Why this may work better than the “middle-of-the-road” L Funds:

✅ The G Fund has never lost money.
It earns Treasury returns with zero volatility—an unmatched safety net.

✅ The C/S/I Funds capture market gains.
C Fund returned over 13% in the last 12 months. S and I funds remain volatile but have averaged strong long-term returns.

✅ L Funds?
They water down growth to stay “safe”—even when markets are roaring. That means less compounding, and potentially a smaller nest egg.

When this strategy makes sense:

  • You’re 5–15 years from retirement and want growth without exposing everything.

  • You’ve already built a solid TSP balance and want to protect it from volatility.

  • You’re frustrated with L Funds but don’t want to “go all in” on stocks.

Example Scenario:

Let’s say in 2020, a federal employee split 50% into the G Fund and 50% into the C Fund.

  • When the market dropped in early 2020, the G Fund side held steady.

  • When the market rebounded later that year, the C Fund surged.

  • That balanced mix outperformed many L Funds—and with less emotional stress.

Bottom Line

The Barbell Strategy isn’t complex. It’s just intentional.

You’re not leaving your future to a preset formula. You’re building it with strategy, control, and clarity.

All without spending hours tweaking and refining each month.

Best,
—Federal Wealth Retirement