Q. I am in the process of moving my traditional IRAs into the TSP, but would like to keep some money in asset classes not available under TSP. Specifically, I have in mind current investments in emerging markets and real estate investment trust index mutual funds. Assuming that I would not need to liquidate these two classes of assets for at least five years, do you have any advice on the percentage of the total amount of post-retirement assets I should hold in each class?
A. I recommend that you forgo this unnecessary concentration (it’s not diversification) and move the money into the TSP instead. What will you gain that is worth the certain increase in expenses you’ll bear? I guess that means that my recommended allocation to these two markets is 0 percent.