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 the 35 percent into the G and F funds. Any further contributions would be allocated to these funds. I chose the L2020 because I not an expert in financial investing. What are your thought on this particular formula?

A. The appropriate allocation for your Thrift Savings Plan account should depend entirely upon the demands that will be placed upon the funds in the future. Your account should be managed to meet your objectives, so I can’t possibly give you advice without understanding your financial goals. The decisions about how your account is invested should be made by the person who is responsible and accountable for the results those decisions produce. It doesn’t sound like you trust your “financial adviser” to make those decisions. Is that adviser accountable for the results — that is, your standard of living in retirement — they produce? If not, I suggest that you find an adviser/manager who is worthy of your trust.


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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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