Q. I am 25 and I am almost at the four-year service mark. I have been contributing since I started working for the federal government as a GS-07 at 5 percent. I am a GS-12 and started contributing 15 percent about five months ago (10 percent ROTH). My current allocation is 50 percent in C and 50 percent in S. I am trying to diversify my allocations a little better. Please help me with some feedback as to which other categories I should looking.
A. Choosing an investment allocation isn’t as simple as choosing a set of dishes. They all work about the same, so you just pick the ones you like best. It’s more like building a rocket. It needs to be carefully designed to get the job done with a minimum of risk. Save as much as you can –- at least 10 percent of your income –- and keep your TSP account balanced to 44 percent C Fund, 19 percent S Fund, 27 percent I Fund, 3 percent G Fund and 7 percent F Fund. This is the starting asset allocation model for the L2050 Fund. When you have accumulated at least $150,000 in savings and investments, get in touch with me at mmiles@variplan.com for further guidance. My help is affordable and cost effective for anyone with $150,000 or more in their portfolio.
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