TSP fund allocation


Q. What fund diversification strategy percentages would you recommend for low to moderate risk tolerance for my TSP account? I am 57 with 27 years of FERS service. I plan to retire at age 60. I currently have $425,000, all invested in the G fund. I moved it to the G fund in October, 2009 after recouping all my losses of 2008. I figured the market would tank again and I would jump back in to take advantage of low share prices. Obviously, I was wrong. I want to get back into the riskier funds to maximize my returns without taking another big hit, but I don’t want to jeopardize the principal. I’m not a big fan of life-cycle funds. Additionally, I’m interested in using your company for retirement planning as I look to retire and for investment strategy after I retire. I would appreciate the best way to contact your firm for advice.

A. The fact that you don’t want to jeopardize the principal limits your allocation to 100 percent G Fund.


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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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