First, if you haven't yet, you really should take the retirement training offered by your agency. I found it very helpful and ours was partially taught by a professional financial advisor.
You need to understand your post retirement financial goals and then, invest accordingly. Also keep in mind, you are likely be retired for a long time, while a very conservative approach on your investments may feel safer, unless you can live with ~2% of growth per year, sticking most of your money in G (or the L Lifetime fund) probably won't work and may not even keep up with inflation.
I'm 1.5 years from retirement. My wife and I've discussed financial goals at length. I've taken the retirement training, I've talked to a couple financial advisors, paid off all our debt, and I've done the math. We figured we need to average ~3% per year to minimally meet our goals. I've been investing the maximum for several years (and really wished I'd had started doing that much earlier in life), including Catchup since the year I turned 50. I'd feel better (more breathing room for emergencies, tax increases, and politicians messing with our pensions) if I was making 4-5% per year in interest and plan to invest accordingly. If I needed more than that, I'd probably working.
Rob G.
---In TSP_Strategy@yahoogroups.com, <danroszkowski@...> wrote :
Have to worry about sequence risk as one approaches retirement age.
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
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.
Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.
![[TSP_Strategy] Re: Nearing Retirement- want to reduce risk](http://2.bp.blogspot.com/-erTXCq61ULM/TmHYAQBZ0GI/AAAAAAAACCs/6cBX54Dn6Gs/s110-c/default.png "[TSP_Strategy] Re: Nearing Retirement- want to reduce risk")
