Since we just passed along our TSP TIPS second reallocation for the month, we thought we would change things up a little and inform you of our new ProFunds TIPS service. Similar to the role between TSP TIPS and the TSP family of funds, ProFunds TIPS will provide that same reallocation role to the ProFunds family of funds which are available to a full variety of accounts including IRAs and Individual/Joint/UGMA taxable accounts. In addition to classic broad-market index funds, ProFunds offers leveraged and inverse funds that track a variety of broad market, sector and non-equity benchmarks. However, what also distinguishes ProFunds is that they allow daily reallocations instead of the TSPs twice/month. ProFunds TIPS then aligns three models to those ProFunds mutual fund categories. These models are 1) Classic TIPS: Aligned with the Morningstar Style Box Matrix using 1:1 index funds, 2) Ultra TIPS: Aligned with Major Market Indices but utilize 2:1 ratio index funds and 3) Sector TIPS: Includes those funds in Ultra TIPS, but also has 1.5:1 sector funds such as Technology, Energy, Banks, etc. As a use case, the Classic TIPS model is well suited for persons that will retiring and are looking for a place to move their TSP balance. Besides waiting for retirement, you can also do an Age-Based Service transfer if eligible. Ultra and Sector TIPS models utilize leveraged ratio funds, so you should expect more frequent reallocations. That said, we do send out daily updates noting reallocations which is consistent with the ProFunds allowance. For more information and a free 90-day trial please check out www.profunds.tips
Since we just passed along our TSP TIPS second reallocation for the month, we thought we would change things up a little and inform you of our new ProFunds TIPS service. Similar to the role between TSP TIPS and the TSP family of funds, ProFunds TIPS will provide that same reallocation role to the ProFunds family of funds which are available to a full variety of accounts including IRAs and Individual/Joint/UGMA taxable accounts. In addition to classic broad-market index funds, ProFunds offers leveraged and inverse funds that track a variety of broad market, sector and non-equity benchmarks. However, what also distinguishes ProFunds is that they allow daily reallocations instead of the TSPs twice/month. ProFunds TIPS then aligns three models to those ProFunds mutual fund categories. These models are 1) Classic TIPS: Aligned with the Morningstar Style Box Matrix using 1:1 index funds, 2) Ultra TIPS: Aligned with Major Market Indices but utilize 2:1 ratio index funds and 3) Sector TIPS: Includes those funds in Ultra TIPS, but also has 1.5:1 sector funds such as Technology, Energy, Banks, etc. As a use case, the Classic TIPS model is well suited for persons that will retiring and are looking for a place to move their TSP balance. Besides waiting for retirement, you can also do an Age-Based Service transfer if eligible. Ultra and Sector TIPS models utilize leveraged ratio funds, so you should expect more frequent reallocations. That said, we do send out daily updates noting reallocations which is consistent with the ProFunds allowance. For more information and a free 90-day trial please check out www.profunds.tips