Q. I’ve been putting money into the C Fund and S Fund but keep 50 percent in the G Fund. I’m not doing too well. I move it when the stock market dips and put it back when it rises. Can I put all of my money into an L Fund and get better results? If so, which one? I plan to retire in 15 years.
A. Really, selling after the market drops and buying after it rises isn’t working out too well? Go figure. Identifying and applying the asset allocation scheme that meets your needs with a minimum of risk would be a smarter approach. That allocation scheme, and how it is maintained, should depend entirely upon your personal circumstances and goals. There is no one-size-fits-all solution. Since you’re responsible for the management of your account and the results you’ll achieve, you’ll have to pick the allocation. The Thrift Savings Plan gives you guidance for selecting an L Fund, but, of course, they won’t stand accountable if their recommendation doesn’t meet your needs. The trick is to put the necessary expertise, affordability and accountability together. It sounds like you meet the affordability and accountability requirements, but are lacking in the necessary expertise.
If it were me, and I had no idea what to do, I’d put my money in the L Fund that most closely corresponds to my life expectancy and then get serious about figuring out what I should really be doing.