Fund allocation


Q. I am 69 years of age and have all my funds in the 2030 fund totaling about $ 89,000. I would like to start taking out $500 per month starting in January 2018. What type of allocation of funds would be good for this amount, percentagewise, where would the spread be best to last 15-20 years. Could you give me an example or two of allocations that would be of great help?

A. You’re planning to initiate an initial withdrawal rate of nearly 7 percent of your TSP account’s balance, which will require careful monitoring and management, especially if you’d like those payments to grow with inflation. In any case, you will have no room for error, and a single bad decision — or even failure to make the right moves at the right time — could lead to failure.

I suggest that you consider starting with the following allocation: 40 percent in the C Fund; 15 percent in the S Fund; 5 percent in the I Fund; 15 percent in the G Fund; and 25 percent in the F Fund for the first six months. After that, you should reassess and adjust your allocation every 6 months.


About Author

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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