Thread: Close to retirement

Depends on how much volatility (risk) you can take...

If you're within 10 years of retirement, I would guess that most financial planners would want you to be 50% in equities at the most - and perhaps less than that.

I plan on retiring in 2 years and my distribution= 45 C, 30 S and 25 I. Plan on something like this distribution after I retire. Maybe a little less in I and more in C after retirement.

Biggdog here. I'm in the same boat! I'll be retiring from the P.O. in 7 to 12 months ( I'm already elgible to go as of 07/04 ). I'm Civil Service so Ihave safe set retirement package. The TSP is extra so I'm gambling ( you have got to do better than all in the G-Fund ). You have to decide what is best for you, but these guys have sage advice so listen. Since I found TSPTALK in the middle of May/05 they have helped me make up my mind with my TSP and I thank them. Good Luck ! ! !

Like Mike said depends on how much risk you are willing to take. I think it was Spaf who used the - take your age and put that number in the low risk area, as a general rule.

I would say it also depends if your FERS or CSRS. If I was CSRS I would be willing to take a little more risk like Biggdog1 knowing that a large portion was in the agency retirement.

Good luck and happy retirement! Your almost there!:^

PAULK wrote:

I am getting within a few years of retirement,I am 61. I was wondering if I would do better to put everything in the G fund . I have a good mix now ,but lately it is so up and down that I just seem to break even,although the last week or so has been good for the stock funds and today has started great for the C fund. I would be gratefull for any thoughts on this .Paul

Show-me was correct. 60/40 should be a good mix at age 61. However, since U want to retire in a few years and the market is very skiddish at present, and U are asking for any thoughts. My thought is that your investments are at too great a risk being in stocks, right now, take your profits and G fund them. However, if you are a risk taker/trader/bull, heck, it's our game!

PS 61 too! but I don't risk any funds that I can't afford to loose!

Have a good retirement [Priority #1] you deserve it!!!! Spaf

I would say that anytime you are 5 years or less away from retirement, you should start to get a little conservative. TSP is a program which works on time. The more time you have the more aggressive you can be. Saying that I feel that it is time for you become less aggressive. If it were me I would put 70% in G and 30% in C. You may want to consider looking around and maybe consulting with a professional, there might be something out there that is pretty secure and will give you a better return then the G Fund. I presently have 8 yrs left before mandatory retirement, currently I have 50% going into C, 25% into S and 25% into I. Occassionally, I do redistribute my old money so that no one fund is top heavy, I am trying to keep it well difersived. Well but the bottom line is you what are you confortable with and what is your risk tolerance. My Dad once told me when gambling, don't bet what you're not willing to lose. Take care and Good luck!

Rich

I agree with Rich.

You just can not take a hit right now.

Good stuff Rich. :^

May want to play seasonality.

Put an extra 5 -10% in the market around the end of Sep and bail after Xmas.

Has worked 11 years in a row for me.

Paulk,

I can't stand no more - when you are in the C fund you are already diversified to the point of being exposed to 500 individual growth stocks. Richrob3 has an excellent program to accumulate and play the odds. There is very little volatility with the choices you are presented with in TSP - that is why they were picked. Therefore, if you have been in accumulate dollar cost averaging mode for many years you now have a very important asset - my friend you have cash. Now is not the time to shrink and go hide in the G fund. No sir, now is the time to try and double your funds over the next couple of years by using the leverage of your cash. Rule# 1: What's easy to do is almost always the wrong thing to do. And what's hard to do is almost always what makes you money.

When you retire you will have even more time to follow your investing style - that may be another 20 years - why shrink, have no fear. We are headed for higher highs on all the indexes over the next several years - you get a good piece of those gains by being 100% C and ride the bull. Continue to allocate your contributions to the same fund so you dollar cost average when there are backups. I'm a contrarian bull and that is exactly what I'm doing - when C fund gets to $15-$16 then begin to ease out in small increments as the price begins to become overvalued- and it will. From higher levels on the sp500 1600 to 1700 the volatility will increase and the corrections will be dreadful but provide opportunity to increase more shares. It only requires planning and patience. The sp500 is due to begin a period of outperformance going forward - currently the S fund is out in front but that will change - that fund will still appreciate but not as rapidly - the C fund will take over leadership and you should be in it up to your neck to make serious money.

This humble advice is applicable to anyone who has accumulated a nice cash position and they should make it work harder with the leverage that is available. That leverage is the ability to use 100% of your cash on one fund - that's why so many folks like to collect the penny - it adds up but only slowly. Catch the silver and help yourself now that you have cash. The contribution caps are also being lifted for 2006, you we be allowed to put in $15,000 plus a $5000 catch up if you want to exercise that benefit. That cash would really be helpful in a dollar cost averaging scenario. Remember, the hard thing to do is where you make money

If my chat makes you nervous - that is good because this is a serious program and it affects your like- but has the opportunity to improve your life also. Take care

Dennis - permabull #2

<<That cash would really be helpful...>>

Cash is always helpful! BT, you're making sense --but will the market cooperate?

Dave

Last six years he would be down 28%.

He can not risk that.

I understand you adore the C fund but the guy is a couple years away from retirement now.

I say again, when have stocks done well in a fed tightening cycle?

Last one was 1999-2000 - that turned out just swell.

:shock::shock::shock::shock::shock::shock::shock:

Ahhh.... what about taking some of that mone and invest it in real estate... Just my .02. However, I do understand real estate is not for everyone...

P