Q. I started working for the federal government in 2003 and I plan to retire in 2035 or so. Until last year I had all of my TSP invested in the G Fund; however, last year I started investing 100 percent into the L 2040 fund. As of right now I have 5,292.1883 shares in the G Fund and the share price is at $16.2848. My balance is at $86,182.23 and the distribution of account is at 77.94 percent and its contribution allocation is now at 0 percent. I also have 684.1896 shares in the L 2040 Fund and the share price is at $35.6532. My balance is at $24,393.55 and the distribution of account is at 22.06 percent and its contribution allocation is at 100 percent. I now realize that the G Fund was probably not the best idea. Do you have any suggestions? Would it be a mistake to transfer what I have in the G Fund over to the L 2040?
A. I suggest that – if you want your account to maximize the lifetime standard of living it will support in retirement; you don’t have a long-term strategy for managing your account to achieve your goals; and aren’t sure what to do next – you consider putting all of your money into the L Fund that most closely corresponds to your life expectancy and keeping it there. This might not be the optimal solution, but it’s better than basing your decisions on emotion, guessing, or worst of all, the recommendations of a salesperson.