Q. I’d be interested to know your opinion on Dave Ramsey’s TSP advice of 60-80 percent going to the C Fund with the remainder split between the S and I funds. I know you always say without proper knowledge and analysis to select the closest L Fund to your life expectancy, but for young employees the closest fund (2050) for that only puts them in the mid-50s to 60s age range, which seems slightly conservative. Do you think his advice is too risky for youngsters hoping to be TSP millionaires?
A. The allocation you describe is not risk-efficient — it wastes risk — so I would never recommend it. My recommendation is safer, and I would argue, better.