Q. I am a 24-year-old male Marine. I have all my money in the G Fund ($2,500), but I never knew anything about TSP. I never knew the control I had over my portfolio. The only advice I have is what I can remember from my high school economics teacher back in 2010. He told me that while I am young I can afford to invest in riskier funds. As I grow older and get closer to retirement, I need to relocate those to something like the G Fund.
So today I put my future investments to go 70 percent, 20 percent and 10 percent into the C Fund, S Fund and I Fund, respectively. I am going to do this for the rest of fiscal 2016 and see what happens. I am not sure what to do with the funds already invested. What are your thoughts on the matter?
A. I usually won’t give out specific allocation recommendations because I don’t know enough about the person and their situation to figure it out, but your case in an exception. You are so young and have so much time ahead of you that I can give you an answer:
I suggest that you use the following allocation for your existing assets and any new contributions:
- 55 percent into the C Fund.
- 26 percent into the S Fund.
- 9 percent into the I Fund.
- 2 percent into the G Fund.
- 8 percent into the F Fund.
You should rebalance your existing funds to this allocation at least once per year, but not more than four times until you’re within about 15 years from retirement.