Good Day To All

**akpackfan** · 01-03-2008, 06:45 AM

I've been reading this site every day since Feb. 07 and just want to say hello to everyone and that I am humbled by the knowledge possessed by so many on this board. I am a 21 year fed and have about 20 more to go. I am also a retired Air National Guard traditional Guardsman. I would like some advice based on the following information:

With my current wages, TSP contributions, and current TSP balance I have figured (using the TSP website calculators) that to reach my dollar amount goal in my TSP account I will need to average a 6% return per year over the next 20 years. Given this information what allocation between all the funds would you split your balance and future contributions if you were just going to buy and hold and make at least 6% per year?

I seems that 6% should be a fairly easy goal to reach every year. I also seem to be the type that cringes every time the market goes down a substantial amount and maybe "lose a little sleep" over it. Because of this I was figuring a majority of my account should be in the G and F funds with the remainder split in stocks. I know most people don't like to give financial advice here but I figured if I simply said I wanted to make 6% per year that should make it pretty easy. Thanks in advance.

**Spaf** · 01-03-2008, 07:04 AM

akpackfan,

Welcome to TSPTalk and the Message Board!
We have a suggested buy-and-hold allocation on the home page.
See:
http://www.tsptalk.com/longer_term.html

Take care, my friend!
Spaf

Originally Posted by akpackfan

......... I will need to average a 6% return per year over the next 20 years. Given this information what allocation between all the funds would you split your balance and future contributions if you were just going to buy and hold and make at least 6% per year?

I also seem to be the type that cringes every time the market goes down a substantial amount and maybe "lose a little sleep" over it....... I know most people don't like to give financial advice here but I figured if I simply said I wanted to make 6% per year that should make it pretty easy. Thanks in advance.

**rokid** · 01-03-2008, 11:07 AM

Originally Posted by akpackfan

I will need to average a 6% return per year over the next 20 years.

6% real (after inflation) or 6% nominal (before inflation)? Inflation has averaged about 3.5% per year over the long term.

Consequently, if you need a 6% annual real return over the next twenty, you'll have to average a 9.5% nominal return. -----Jim

**Show-me** · 01-03-2008, 11:13 AM

Rokid,

There is no inflation just ask the folks on CNBC and Birch. LOL

akpackfan,

Welcome to the mb and in all seriousness Rokid has a excellent point. You need to set your sight a little higher with 20 years to go.

**EW_ret** · 01-03-2008, 11:47 AM

Welcome to our forums. You can join our Automated Tracker once you have 10 posts. Read the Automated Tracker Rules in my signature. Its been recording our members' IFTs and returns since August 31st. Click Members Ranking to see the current return rankings of our members.