Browsing: Investing

Q. A newsletter I received states there are several TSP millionaires. What is the general characteristics of a TSP millionaire? Are they in management? Upper G-level ratings? Is it the amount that is allocated and the way in which it is invested? I have invested the total amount that I can, plus investing the total amount to catch up after 50 for 31 years, and I am not close to being millionaire.

Q. I’ll be turning 70½ in 2018 and will start withdrawing my required minimum distribution. My plan is to leave my funds with TSP, then receive the minimum monthly payment and the rest at the end of each year. I’m going to invest a small amount in a balance account. The rest of the money I would like to save for my family. Should I put it in a regular savings account to be safe, or would you suggest something different?

Q. The L funds such as L2020 are structured toward retirement dates such as 2020. After that date, your funds are moved to the L Income Fund. I’ve seen you mention several times that if you can’t decide how to allocate your funds after retirement that we should consider the fund that matches our life expectancy. Can you explain the reasoning behind this a little more? If I am currently 57, retired and my life expectancy is 85 years of age, are you saying I should consider the L2040 or L2050 funds?

Q. I have $600,000 in my TSP allocated as 41 percent in the C Fund, 6 percent in the S Fund, 22 percent in the I Fund, 23 percent in the G Fund and 7 percent in the F Fund. Is this an appropriate allocation for a 54-year-old retiring in two years? I need approximately $2,000-$3,000 a month for 25-30 years. If not, what allocation do you suggest?

Q. I am 38 years old with 15 years of government service as a GS-14. I hope to work no more than 20-22 more years, assuming age 60 will give me the maximum benefit. My TSP allocations are where my concerns lie. I am blindly diversifying my account as follows: G Fund at 10 percent; F Fund at 0 percent; C Fund at 50 percent; S Fund at 30 percent; I Fund at 10 percent. I have no allocations in the L Fund. I am contemplating having future earnings go into the L2040 fund. Would you recommend this, and how much…

Q. I am 69 years of age and have all my funds in the 2030 fund totaling about $ 89,000. I would like to start taking out $500 per month starting in January 2018. What type of allocation of funds would be good for this amount, percentagewise, where would the spread be best to last 15-20 years. Could you give me an example or two of allocations that would be of great help?

Q. I am a FERS employee with 28 years in government service and about five years away from retirement. I evaluate my TSP portfolio allocation based on risk comfort, life expectancy, etc. in isolation from what I expect to receive from Social Security and my FERS pension. My allocation is roughly 60 percent stocks, 40 percent bonds (mostly G Fund). Recently, I have been told that because I will have a guaranteed income stream from my FERS pension, I can afford to take more risk in my TSP and I should move money from the G Fund to the stock side of the portfolio.…

Here are the year-to-date returns, through the end of June, for the five basic Thrift Savings Plan funds: C Fund = 9.34% I Fund = 14.10% S Fund = 7.41% F Fund = 2.48% G Fund = 1.17%. Interesting? Maybe to some. Useful? I don’t know how. As an investment manager — or TSP participant, as you are commonly known — you are responsible for making or delegating the making of a massive series of decisions. Some of these decisions, like whether you contribute to the Roth or the Traditional TSP accounts, will most likely wind up being relatively insignificant.…

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