The TSP Strategy That Separates the Top 1%

April 24, 2025

It’s not about earning six figures. It’s not about working 40 years. And it’s definitely not just about maxing out your TSP.

Federal employees who retire truly wealthy—the kind with real flexibility and peace of mind—aren’t just saving more.

They’re thinking differently.

And there’s one move they make that most federal employees don’t.

The Default Path Is Comfortable—But Costly

We talk to federal workers all the time who believe they’re on track just because they’re contributing and getting the match. And sure, that’s a good start.

But the top 1%?

They’re not following the default settings. They don’t just “ride it out.”

They make tactical, intentional choices with their TSP that compound over time—especially when others are sitting still.

The Secret Move: Strategic Contribution Timing + Fund Rebalancing

It’s not flashy, but it works—consistently.

Here’s what these top-tier retirees are doing:

They Contribute With Timing In Mind

  • They don’t just “max out” blindly. They use market dips to increase contributions.

  • They shift between Traditional and Roth depending on their current and projected tax bracket.

  • They use catch-up contributions after age 50 with precision, often paired with planned Roth conversions pre-retirement.

They Rebalance Quarterly (Not Emotionally)

  • Instead of reacting to headlines, they rebalance on schedule—typically every 3 months.

  • They monitor risk exposure as retirement nears and make small shifts, not big panicked moves.

  • Many use C Fund vs. G Fund ratios as simple risk gauges to adjust over time.

They Think Beyond the TSP

  • TSP is the foundation—but not the whole house.

  • They coordinate it with outside IRAs, their FERS annuity, and their Social Security claiming strategy.

  • They start mapping withdrawal strategy years before retirement—not after.

Start Thinking Like the 1%

This isn’t about fancy investing. It’s about applying small but powerful shifts consistently.

Here’s a quick framework you can start using now:

📌 The “Rule of 3” Check-In

Every 3 months, ask yourself:

  1. Is my fund mix aligned with current market conditions and my time horizon?

  2. Am I contributing in a way that reflects my tax bracket today—and where it’s headed?

  3. Have I coordinated my TSP with other retirement income streams?

If you don’t know the answers, it’s time to take a closer look.

Bottom Line

You don’t need a bigger paycheck to retire wealthy—you need a better plan.

The 1% of federal retirees who achieve real financial freedom aren’t lucky. They’re strategic.

And the best part?

The tools they use are available to every federal employee. Including you.

Best,
Federal Wealth Retirement