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…
Browsing: S Fund
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?
Q. I have a separate Roth IRA with a fiduciary adviser, but my TSP consistently out performs my Roth. Is there any benefit to cashing out my Roth and starting to contribute to the TSP Roth account? I am 45 years old and have a total of $150,000 in my Roth account. I am currently maximizing my traditional TSP contributions.
Q. Both the president and OMB nominee have floated the idea of defaulting on national debt in order to settle it at a lower cost. What impact would there be on TSP accounts if debt were defaulted upon?
Q. I have been investing for 10 years in the G Fund with minimal gains. I recently put 50 percent toward the S Fund and 50 percent toward the C Fund. Was that a smart move? I have to retire in 10 years (mandatory 57 years old).
Q. I’m late out the gate with my TSP account, however I’m excited that the C Fund is on a gaining streak right now. I used to have my 5 percent going to the G Fund, then whatever total amount I had in the G Fund I switched it completely over to the C Fund. I also added another 1 percent, so now I have a total of 6 percent of my paycheck going into the C Fund. I’m only a Grade 7 so finances are a little tight, and I’m sure they are going to be even tighter when it comes time…