Why Your TSP Should Be More Like a Start-Up—And Less Like a Certificate of Deposit

June 27, 2025

Every federal employee knows the TSP is safe.

But sometimes, safe is just another word for slow.

If your portfolio looks like a padded bunker rather than a launchpad, you may be treating your retirement like a CD (Certificate of Disinterest)—not a wealth engine.

The Investor’s Identity Problem

Too many smart, capable federal employees approach the TSP with a scarcity mindset:

  • “Don’t lose money.”

  • “Don’t rock the boat.”

  • “Just play it safe in the G Fund.”

But what if you saw yourself not as a preserver, but a builder?

The ultra-wealthy do. And even with fewer resources, you can too.

Think Like a Start-Up

Start-ups don’t hoard capital. They put it to work:

  • They allocate for growth early—knowing time is their secret weapon.

  • They pivot fast when conditions change.

  • They don’t fear volatility—they leverage it.

You don’t need to be reckless. But treating your TSP like a business forces better questions:

“What’s my return on risk?”

“Where am I under-leveraged in growth?”

“Is my allocation matching my mission?”

A Sample “Fed Start-Up Strategy”

If you’re 10+ years from retirement, here’s a basic entrepreneurial-style allocation:

✅ 60% C & S Funds — High growth potential
✅ 20% I Fund — International diversification
✅ 20% G or F Fund — Core liquidity buffer

Rebalance quarterly. Review like a board meeting. Adjust like your future depends on it—because it does.

The Bottom Line

Your TSP isn’t just an account. It’s your freedom engine.

The G Fund feels safe. But it also quietly robs your future self of opportunity.

If you only grow at 2%, and inflation is 3%... you’re not saving—you’re slowly slipping.

Instead:

  • Treat it like a start-up.

  • Build it with vision.

  • Fuel it with strategy.

  • And give it the respect of a future CEO—not a cautious saver.

Your retirement deserves more than “safe.” It deserves sovereignty.

—FWR