Asset allocation


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. It only lists two of the five funds and the percentages don’t add up to 100 percent, so I can’t help you there. I suggest that if you don’t know what to do, consider using the L Fund that most closely corresponds to your life expectancy.

As for the mortgage, if I were managing your financial plan, I would lean against paying off the mortgage since it will impair your portfolio’s liquidity and may tie up money you’ll need later for expenses. You’ll have to decide what makes sense to you. There is no universally “wise” choice.


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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 and view his blog at

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