Browsing: S Fund

Q. I’m retired and will be 61 in May 2020. My allocations are 25 percent C Fund, 50 percent I Fund, and 25 percent L2020. I also have $9,000 sitting in the S Fund. Should I move the 25 percent in the L2020 and the $9,000 in the S Fund to L2050? Not sure what to do with the C & I Funds.  A. If you don’t know what to do, I suggest that you put your balance into the L Fund that most closely corresponds to your life expectancy.

Q. What is the annual withdrawal strategy that would allow me to avoid selling stock shares (C,S,I) during years that the market is down? I’m sure I read in “Money Matters” a strategy where a person could avoid a sequence of withdrawals disaster early in retirement by moving to the F and G Funds just prior to the annual withdrawal then back to stock shares immediately after the withdrawal. If there is such a strategy, could you explain it more specifically? A. Here’s the article I wrote for the Federal Times in 2016: How to Take a Selective Withdrawal Your…

Q. I currently have a TSP account as an FERS employee, with 100 percent is in the L2040 Fund since I started almost 3 years ago. I have a long way until retirement, as I am 37 years old. Someone said I should do the “CSI,”  which would be C Fund=40 percent; S Fund=40 percent; I Fund=20 percent, but I’m not sure what that even means.  I would like to look forward to a comfortable retirement so suggestions are welcome and much appreciated! A. You should ask the “someone” whether they will take responsibility for the outcomes their advice will produce.…

Q. I am wondering how Lifecycle Funds value are determined. For instance, the L2050 Fund is less expensive than the L2020 Fund and the L2050 is the more aggressive fund meaning it has a higher percentage of C, I and S. I don’t understand how this works. Additionally, I tabulated each of the L funds by taking the percent allocation multiplied by the cost of the fund and it is less expensive for me to allocate the same percentages of any of the L funds (outside of L2050) directly versus the subsequent L fund. For example, as of this [April…

Q. I am a federal employee under CSRS, eligible to retire with max benefits in 2024 (41 years and 11 months) at the age of 60. My TSP distribution is 50 percent L 2020, 15 percent C fund, 15 percent S and 15 percent I funds. At the close of 2018 my balance was $340,295, which reflects a loss of $47,753. Should I move everything to the L Fund?

Q. Currently I have 90 percent in the S fund and 10 percent in the G Fund. Obviously, I’ve lost a lot of the gains we made $57,000 to be exact.I know we are due for a correction, but I have no idea what to do. Move to the L Fund? Move 50 percent to C? If I do those now, do I lose? I retire in 6 years 10 months.

Q. My plan is to retire on Dec. 31, 2018, at age 58 (under FERS). My TSP balance is just over $1 million. I plan to leave my TSP account with the federal government at this time. My current distribution in the account is as follows: G 8.83 percent; F 17.5 percent; C 31.5 percent; S 32.05 percent; and I 10.06 percent. How would you recommend that I reallocate my funds before I retire?

Q. When you lose money in the TSP C,S or I Funds (during a correction or crash), is it only on paper and only temporary until the market rises again at some point? The only time you really lose money is when you sell in a down market and “lock” in your losses, correct?

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