Q. I am a CSRS employee with 38 years of government service. So far, I have my funds spread over all of the funds: 45 percent in G and 30 percent in F. Is this wise considering I intend to retire in fiscal year 2013? Also, is it wise to take funds from my Thrift Savings Plan and just pay off one of my two mortgages? The mortgage rates are 4.5 percent and 5 percent. I’d like to pay off the 5 percent mortgage, which is about $150,000. Is this wise? If not, why not? A. Your asset allocation makes no sense.…
Browsing: F Fund
Q. I wanted to know your thoughts over using a portion of my savings for a “fun” account. I am 57, retired from CSRS, debt-free with no children and a spouse who has a defined benefit pension that would cover her expenses independently. I have $120,000 in a Roth IRA; $100,000 in CDs; and $225,000 in the Thrift Savings Plan, 50 percent in F and G funds. The Roth has 50 percent in a health mutual fund, 50 percent in a financial mutual fund and earns about 6 percent annually. Why not take, say, $75,000 and put it in an account…
Q. I’ve worked for the Food and Drug Administration for 18 years. I started investing in the Thrift Savings Plan about 10 years ago and don’t plan on retiring until 2030. I’m investing 15 percent right now, and I plan on doing more. I’ve been advised to invest in the L Funds. But lately I’ve been looking at the F, C, S and I funds, which are doing so much better than the L. I want to switch to the one that’s earning the most. Isn’t the L fund for those who are ready to retire within a couple of years? I’m…
Q. Your Sept. 24 column in Federal Times made the suggestion to increase allocation in the G Fund at the expense of the other funds, including the F Fund. I have not normally been heavily invested in the F Fund in my 25 years. However, with the F Fund having the second-highest return of any fund since its inception (5.86 percent); that it has never had a negative yearly return; that there is a continually declining performance of the G Fund; and the low probability that interest rates will go up any time soon, I see the F Fund as…
Q. I am looking for some feedback on information received from a financial adviser. I have been in the L2020 fund. The financial adviser is primarily for military and federal employees. He indicated that the L2020 fund currently has 60 percent in stocks (C, S and I funds) and 40 percent in fixed income (G and F funds). He had suggested conducting an interfund transfer to allocate 65 percent to stocks and 35 percent to fixed income. The formula would be 25 percent C, 20 percent S and 20 percent I funds, equaling 65 percent. The second equation would be to put…
Q. I am 61 and have $200,000 in the Thrift Savings Plan. I’m in process of transferring another $240,000 from an outside discount brokerage firm to my TSP. I would like to transfer all of the $240,000 to the F Fund. With interest rates possibly remaining low for another few years, is this a good move? When interest rates rise, how much will the F fund shares decrease? The bonds it holds are short and intermediate, so I’m assuming it won’t lose as much as if it held long-term bonds, but I’m not clear on how much I could lose. I’m trying to move…
Q. I am 29 years old and serve in the Air Force. I contribute the maximum $5,000 amount to my Roth IRA every year, and have a few thousand dollars in the standard Thrift Savings Plan. I am concerned about the lack of investing options besides the G, F, S, C, I and L funds within the TSP. With the new Roth TSP option, would it be possible for me to continue to contribute $5,000 directly to my Roth IRA, then contribute $17,000 to a Roth TSP, and finally roll that $17,000 over to my Roth IRA each year? A. Your participation…
Q. I’m a FERS retiree, age 64, with a $36,000 annual pension. My spouse has a $40,000 annual salary. We have a rental property that brings us $24,000 a year. And we have a home mortgage balance of $500,000. Our living expenses so far do not require me to withdraw my $600,000 Thrift Savings Plan fund. I plan to live until age 85. As I approach age 70½ with minimum distribution, what is the best tax strategy for transferring the $600,000 from the TSP into a private investment account? A lump-sum rollover into a Roth account after paying the taxes? A calculated…
Q. I’ve been putting about $2,500 a year into the G and F funds. Should I continue to do that, or switch to an L Fund or perhaps a Roth? I’m 25 with four years of service in? A. Sorry, but we don’t give individual investment advice through this forum. Your asset allocation seems very conservative for your age, however.
Q. I know that I can’t put my wife’s Individual Retirement Account into the Thrift Savings Plan, so we would like to invest it into an F Fund equivalent. Can you identify such a fund that we can roll her IRA into? A. Any fund that is based on the Barclay’s Capital U.S. Aggregate Bond Index should do — the lower the cost, the better. Try AGG from iShares.