Q: I am an employee under the Federal Employees Retirement System. I will retire in five years at age 56 with 37 years of federal service. I plan to continue working in the private sector and not make any Thrift Savings Plan withdrawals until I turn 62. I currently contribute 20 percent of my TSP money to each of the five funds. What is your opinion on this investment allocation? If it’s not favorable, could you provide an allocation that you feel would be in my best interest? Also, if I decide to delay my federal retirement until age 62, would you recommend the same mix or a more aggressive one?
A: The information you’ve provided isn’t adequate to support the kind of analysis required to determine the right asset allocation. The allocation is a means to an end and should be chosen to support your specific goals, including the amount and timing of all future cash flows expected to affect the account, among other personal factors.