Q: Can you comment on Thrift Savings Plan Pilot? I am five years from retirement and took a big hit from the last dip in the market. I need to maximize my TSP; how am I to know what the proper percentages are to allocate to the five funds?
A: I don’t believe that market timing services are a reliable way to manage a portfolio for retirement income. Like anything else, your assets should be managed to acheive your goals, not to beat this or that arbitrary benchmark. Asking how to determine the proper asset allocation to support your goals is kind of like asking how to fly a plane on a very long journey without providing the details about where you want to go, when you want to get there, and the plane and other resources you have available to you. Getting there safely will require some careful analysis, planning and management along the way. If you’re not a competent investment manager, I recommend that you find someone to help you who is.