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…
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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 just changed my contribution allocations from 100 percent G Fund to 100 percent L Fund 2030. Would it make sense to transfer my fund balance that I earned with G Fund to the L Fund? A. It’s impossible to give you reliable investment advice without the proper analysis and understanding of your unique circumstances, goals and constraints. How you manage your investments should depend directly upon what you expect that money to do and when. In general, though, unless the G Fund is holding money that is to be spent within the next few years, or that is part…
Q. I was contributing to the Thrift Savings Plan since 2002, when the program started, until 2009. I don’t contribute now on a monthly basis because I am not a government employee yet. I still put in money from time to time, like rolling over a 401(k) from a previous job. I have close to six figures in my plan. I plan on working for another 20 years, hopefully in the government sector soon. I currently have all my money in the G Fund. I have always been nervous to put money into those other funds. Can you provide me tips on…
Q. I am sure the upcoming elections will affect the market, as elections always do. What would be the recommended fund to put my money into for this? I have 13 years until I plan to retire, but I want to maximize earning without taking too big of risk. Right now, I have about 90 percent in the C Fund the rest in the S Fund. A. Assuming that your Thrift Savings Plan is your only investment account, your current allocation is unnecessarily risky and inefficient. If you’re not a competent investment manager, and your question hints that you’re not,…
Q. Can I move the total amount of money in the G Fund over to the L Fund? A. Yes, if you have not already requested two interfund transfers during the current calendar month.
Q. Once I’m retired and don’t touch my Thrift Savings Plan and just let it stay in the L2020 fund, would I still be able to apply for the lump sum at a much later date? A. Yes.
Q. I am 64 years old and retiring from the federal government with over 33 years of service. I am CSRS Offset. I applied for Social Security to begin in September. I do not need my Thrift Savings Plan money now. Should I leave it where it is, or roll over to an IRA? I have all of my money in the L 2020 fund. If I leave it where it is, should I move the money into another fund(s)? A. You should leave your money in the TSP for as long as possible. There is no better retirement investment environment. How…
Q. I’ve worked for the Postal Service since 2001. There is $29,000 in my Thrift Savings Plan. I was on the 3 fund for all of those years. I would like to make some changes hoping to bring in more. I am 37 years old. I just changed it to 30 percent S and 70 percent G, but I am sure that is not good. Could you assist me? A. Why did you choose this inefficient allocation? If you’re not sure which allocation best suits your needs, try the L Fund with the maturity that most closely matches your life…
Q. You wrote, “the presence of the G Fund allows you to configure portfolios that produce risk/return characteristics that are superior to those available anywhere else.” I’m not aware that you could configure your own portfolio in the Thrift Savings Program, other than the index funds and L funds. Are you saying one shouldn’t own even no-load, low-fee mutual funds, more narrowly targeted than broad index funds, in an IRA? A. I was referring to configuring a portfolio using the five basic TSP funds. I know of no reason to use anything other than low-cost index funds for retirement investing.…