Browsing: C Fund

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…

Portfolio diversification is a concept that every TSP investor should understand and use to their advantage. It’s also a concept that few seem to properly employ. Over the past 15 years, there have been calls from participants to add all manner of specialized investment funds to the Thrift Savings Plan – Internet, real estate, energy, gold, health care or any other market that has been hot — in the name of diversification. Ironically, these calls for more ability to diversify wouldn’t really help to improve diversification. Instead, adding these kinds of funds will, more than anything, allow participants to…

Q. I am a federal employee and have been eligible to retire for a while, but I wasn’t ready until now. Within nine months I will have retired. I am one that converted way back when from CSRS to FERS. I am 67 and a half years old (already drawing my SSA, which I started at 65 when I reached 100 percent) and will be 68 and a half years old when I retire. Within 2 years after retiring, I will be required to start taking my minimum withdrawals. Several things: I am concerned with the recent money market fluctuations and…

Q. I’m a federal employee within about 5 years of retirement and am wondering about whether to revise the distribution of funds in the L 2020 fund in which I’m now invested ($127,000 balance). I was just told the rate of return in the G fund (to which the L 2020 fund currently allocates 44 percent) is quite poor and that I should consider reallocating funds out of the G fund — perhaps concentrating on the C, S and I funds. However, I’m aware of the need to invest conservatively with this short time horizon. Under these circumstances, would you advise…

Q. I plan to retire in 3 years. I have about $500,000 in the TSP. Currently I have the balance in the G fund because I feel pretty conservative as I approach retirement with that amount of money and don’t want to lose it. However, I am continuing to invest new contributions in the C, S and I funds. Does that make sense?

Q. Upon retirement, if leave my money in the TSP with a mixture of the G Fund and the C Fund, when I take monthly payments which fund will the payments come from? Can I designate monthly payments to come from the G Fund first?

Q. I thought the C Fund’s unit price is calculated depending on the Standard & Poor’s 500 index. Would you tell me how I expect what C funds would do compared with S&P 500 index?