Q. I had 50 percent of my TSP in the G Fund and the other 50 percent in the C Fund. Back in 2014, I lost about $17,000. In the past week I have lost about $8,000. My plan is to retire in January 2017 (I will reach my full retirement in December 2016). I recently changed my contribution to 60 percent to the G Fund and 40 percent to the C Fund. I’m considering just putting everything in the G Fund. It’s very important that I have as much money in my TSP as possible. If I lose a significant amount this year I may need to put off retirement. Do you have any advice?
A. Do so only if you need the return to support your long-term financial goals and you are also holding U.S. Treasury bonds in your portfolio to hedge the risk.
Separately, I should point out the logical error of not wanting to sell the C Fund when it is high, and then selling it after it has fallen in value: This is backward thinking. Where else is it less attractive to buy at a low price than at a high price?
