Browsing: S Fund

Q. The continued drop of the stock market (and therefore the C, S and I Funds) is scaring me and I want to preserve the gains I had in 2017. I just reallocated my TSP balance to C, S and I Funds on January 29, moving from an L Fund allocation. I change my allocation every year in January, but in hindsight it was a bad decision this time. If I have, say, $200,000 today, will an interfund transfer to the G Fund show my TSP balance to be $200,000 tomorrow? I want to stop my TSP balance from dropping…

Q. Do you have suggestions as to any good books/blogs/websites to read in order to understand how to properly allocate my TSP funds? I am 26 years old and have been working in the federal sector for a little over a year. From everything I have read so far, I should invest most of my allocations into the C, S and I Funds because I can afford to take risk. I would like to know of any material that discusses TSP allocations in more detail.

Q. I’m 27 years old and work for the U.S. Postal Service. I have about $10,000 saved in my TSP, and I just moved most of my savings from the G Fund into 70 percent C fund and 30 percent split between the G, I and S funds. At my age, is this a smart move for the long run?

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?

Which way will the market, and the value of your TSP account, go next? If you’re like most investors, you are betting, and therefore hoping, that it moves higher. Or, maybe, lower. Either way, if you have a preference, then that preference makes you vulnerable — vulnerable to the risk of being wrong. As much as you might tell yourself otherwise, the odds that the value of a share in the C, S, I or F funds will go up or down in the short run are about 50-50. If you’re betting that the C Fund will rise in value…

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?

Q. The information in the TSP site under the fund comparison matrix for the S Fund says the objective of the fund is to match the performance of the Dow Jones industrial average’s Total Stock Market U.S. Completion Index. So of course I would think when the Dow goes up, the S Fund would go up, yes?

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