It depends on so many factors. Do you have other retirement income to fall back on, such as an active duty pension and/or VA? Are you happy with the amount you have in your TSP?
The general advice I've seen is to move 30% to G to maintain your nest egg. It's easy for me to say since I'm a good 15 years out from retirement but I don't see myself ever moving from my current 50/50 C/S, even while in retirment. Those who are invested as such have been taking 4% withdrawal and their account balances are still increasing. Sure there is risk to it but when has the market ever not rebounded? It always has. Even with the numerous dips over the years including the horrendous 2008/2009 one, the average return is 7%.
I wouldn't do the L Funds. If you do want to move 30% (or whatever your comfortable % might be), just set it up yourself through interfund transfer and leave it alone (such as 35% C, 35% S, 30% G). I don't like the L Funds because they are invested too much in F and I, and not enough in S. Also as time goes on, you'll have way too much in G and F. For example, the current L Income is invested over 79% into G and F. That's how the current L2050 will look in 2050. That's way too much for me. You can view this link to see how the L funds are comprised. https://www.tsp.gov/InvestmentFunds/FundOptions/fundPerformance_LIncome.html . That's a direct link to L Income but there are tabs to view the other L funds.
Mike
On Fri, Jun 7, 2019 at 11:36 AM daniel thompson danbev6462@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:
Bill - you may consider LifeCycle, those funds allocate based on age/retirement date and then adjust funds to a risk that's lower as you near retirement. Dan
Sent from my iPhone
On Jun 7, 2019, at 9:09 AM, bill_steele_sr@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:Let me qualify my question by saying that I understand the disclaimer about this not being a place where advise is given in a licensed fiduciary manner- so I'm looking for Casual opinions and will not bear any ill will if I follow suggestions that turn out to be less than profitable.With that said. I'm 5 years away from retirement. Should I keep going with this group's recommendations- currently "S" or should I move my money and park it in safer waters. The groups has a good track record, while the managed funds are not so good. If I stay with the group for 5 years and do well- and then the market tanks in 4 years, am I likely to earn enough for the loss to offset the dismal returns I'd get if I parked it in an L Fund?I'm not versed in talking about this stuff so I hope my question makes sense. Bottom line- Where to put my money with 5 years to go. I'm also considering increasing my contribution from 10% to 15% for the final 5 years..
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Posted by: Mike VanAmburgh <mjv325@gmail.com>
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