TSP allocation


Q. I am current 57 years old and have a TSP balance of approximately $800,000, which is currently allocated: 78 percent in the G Fund, and 22 percent in C Funds. I plan to retire in September 2017 and will start monthly withdrawals of approximately $2,000 per month from my TSP. The men in my family typically live to the mid 80s. Is this a good allocation between funds, or should I diversify a little more?

A. If you put it all in the G Fund, it will support your withdrawals until you reach age 90, so the first question you should answer is whether or not you need to expose your money to any stock or bond risk, at all. If you decide to take some risk, then you could be better diversified. Try using an L Fund, instead of your two-asset model.


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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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