Hi, I'm not really giving advice... just offering something to think about... If you look at the TSP's L2020 Fund, for example, it is a Fund for people who will begin withdrawing their money from 2015 through 2024.
As of Jan 2014, the L2020 Fund's allocation is about 40G/7F/28C/9S/16I.
If you FF 3 years to Jan 2017, the allocation is about 52G/7F/22C/7S/12I.
If you FF 5 years from now to Jan 2019, the allocation becomes even more conservative: 65G/6F/16C/5S/8I.
Once L2020 reaches full maturity in 2020, it will actually BECOME the L Income Fund - which is a Fund choice designed for people currently retired.
The L Income Fund's allocation is: 74G/6F/12C/3S/5I.
Some say these target funds have what is called a "glide path" built in - which is (in theory) designed to take you through retirement with 80% in Cash/Bonds (74G/6F) and 20% in Stocks (which will allow you the chance to try to beat inflation and hopefully experience enough growth to help get you through retirement). I'm not saying or recommending that you should go with an L Fund - I'm just pointing out their allocations.
If, for example, you decide to play it safe & go w/no risk and move 100% to the G Fund - then your nest egg won't keep up with inflation.
So, many theorize that it might be wise to continue putting some of that nest egg to work for you WHILE in retirement.
However, what you decide to do, I would assume would be based on the overall big picture and your risk tolerance, among several other variables - such as Social Security income, other investments and/or debts, your AGI, tax strategy, etc. All kinds of stuff to consider. If you both truly don't know what to do, it might be wise to seek some type of fee-based professional advice (of a fiduciary nature: someone w/no stake in any of your financial assets & has only YOUR best intentions at hand). Maybe a financial planner or an estate planner? I don't know, but if they try to sell you something - RUN!
Welcome to the Forum
There is no single correct answer to your question, "Wise man said only fools rush" Elvis was right, before you do anything I would examine what you've already done. Look at your historical returns and compare them to the benchmark S&P 500, understand the TSP funds and how they correlate the indexes they track. Read, read, read, measure twice, cut once. Pick up a copy of Technical Analysis For Dummies, Stock Traders Almanac 2014, The Intelligent Investor, a small investment in your time spent reading can broaden your investment knowledge 10-fold. By then you should know what type of investor you want to be and why. Best of luck!
Retired, 10G/90C_ BLOG: Stats for April, 2024 Stats
Thank you all for your comments and the suggested reading material. I think I will leave the majority in the G funds and split the rest between the S and C. Opinions? Right now is the large business doing better than small one? Thank you.
S&P500 (C Fund) (delayed) (Stockcharts.com Real-time) |
DWCPF (S Fund) (delayed) (Stockcharts.com Real-time) |
EFA (I Fund) (delayed) (Stockcharts.com Real-time) |
BND (F Fund) (delayed) (Stockcharts.com Real-time) |
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Yahoo Finance Realtime TSP Fund Tracking Index Quotes |
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