G Fund percentages


Q: I read your May 3 piece regarding the G Fund. You said it should represent 10 percent or less of an investor’s Thrift Savings Plan assets. Maybe I’m not understanding correctly, because the suggested G Fund distribution in the L Funds has 32 percent in the L 2020, 64 percent in the L 2010 and 74 percent in the L Income. My opinion is that these are very high percentages, but I also think your 10 percent is rather low.

I’m not currently in the L Funds and probably won’t be. I plan to retire in 2014 so I can take advantage of the Federal Employees Retirement System sick leave provision.

A: I simply stated a fact: that most of the planning cases I’ve worked on have been best supported by G Fund allocations of 10 percent or less. I did not say that your G Fund allocation should be 10 percent or less. Since you’re not my client, I have no idea what it should be.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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