Hi There

**kistari** · 01-05-2008, 05:29 AM

I've been studying this site for about a year now. I'm due to retire the end of March (FERS) and need to average 6% yearly return (after inflation) to be comfortable throughout retirement. Unfortunately I'm the cautious type and hate to see my account balance drop - which makes me a bad investor.

kk

**Spaf** · 01-05-2008, 06:01 AM

Welcome kistari!

I know what you mean!
Your not a bad investor!.... Just got to use Capital Preservation along with Risk vs Reward.

Originally Posted by kistari

I've been studying this site for about a year now. I'm due to retire the end of March (FERS) and need to average 6% yearly return (after inflation) to be comfortable throughout retirement. Unfortunately I'm the cautious type and hate to see my account balance drop - which makes me a bad investor.

kk

**Rod** · 01-05-2008, 01:38 PM

Hello and welcome!

Since you're so close to retiring, and with the current market uncertainty, you may want to reconsider entering the C, S, or I Funds at this point in the game...unless you don't need your TSP funds to live off of.

Wait for things to settle down a bit, then invest no more than 20% into stocks... perhaps going with the (L Income) fund until you can become familiar with (if not already) how the market affects all TSP funds, at which point you can begin to actively manage your account.

My $.02

God Bless

**Show-me** · 01-05-2008, 01:43 PM

Welcome to the mb!

I agree with Rod, at this point in your life you can not risk it all. Markets go up and markets go down. Sometime they go down real hard and take a long time to recover. Minimize your risk at this point in your life.

**kistari** · 01-05-2008, 08:06 PM

I agree on minimizing my risk - which is why I'm waiting in the G fund right now. But, I know I can't stay there forever and still make my goal. The L income fund is a possibility. Thanks.

**Barney** · 01-06-2008, 05:41 PM

Welcome to the mb.

**EW_ret** · 01-06-2008, 08:40 PM

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.

Risk and reward determines the return to expect in retirement. You need to take some risk to achieve that 6% return above inflation. My personal taste for risk is between 30% to 45% in equities (C/S/I) during my early retirement. Right now I have 44% in equities, 20% bonds, and 36% cash. This should yield a 7.5% average return before inflation.