Fund allocation


Q. I am a FERS employee and plan to retire in December 2015 at age 68-1/2 with 30 years, nine months of government service. I presently invest my TSP with G Fund 60%, F Fund 10%, C Fund 10%, S Fund 10% and I Fund 10%. Should I switch the money out of the G Fund and invest in C Fund 60%, S Fund 20% and I Fund 20%, as they seem to be doing so much better than the G Fund?
A. I can’t possibly tell you what investment allocation you should be in without the proper knowledge of your goals resources and other relevant circumstances and the necessary analysis and understanding. I can tell you that your asset allocation is risk-inefficient and subjects you to more risk than needed for the expected return it produces. I suggest that you consider switching to the L Fund that most closely corresponds to your life expectancy. By the way, good recent performance is a reason to sell a fund, not to buy it.


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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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