Q. Why can’t I reasonably expect 5 percent average return over a 30- or 40-year period on a TSP portfolio consisting of 43 percent C, 21 percent I, 6 percent S, 23 percent G, 7 percent F? Let’s assume modest fixed payment withdrawals of 2-3 percent over that 30- to 40-year time frame. I’m 55 and retired.
A. It’s reasonable to expect an average annual rate of return of at least 5 percent from this allocation, if rebalanced regularly.
