TSP risk


Q. I am 25 and just started my TSP and want to invest in a very risky fund. What would be best for risky? Or should I take a different approach or is risky fine for someone my age? I am a risk-taker in life.
A. The riskiest – most volatile – TSP fund is the S Fund. In general, I don’t think you should take any more risk than necessary to achieve your goals. People seem to equate risk with greater account values, but this is not always the case. The odds of the two being the same do improve as your time horizon recedes, though, and you can probably afford to be fairly aggressive at your age. You’ll get a better risk/reward ratio if you diversify your account a little more. I suggest that something closer to 55 percent C Fund; 26 percent S Fund; 9 percent I Fund; 5 percent G Fund; 5 percent F Fund would be a better bet.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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