The next six years

[lovert]

I have 17 years in with 6 more until I'm 50.(retirement date) I currently have $135,000, all in C-Fund. Where should my money be placed for the next 6 years?

lovert, it all depends on how much you will be relying on these funds in retirement. If these funds are the bulk of your retirement, you will want to grow increasingly conservative as a couple of years of down market could really hurt ( more into the G fund). However, if you plan to continue to work, or have other resources and do not plan touse your TSP right away, you could consider a stronger growth strategy for a while longer ( C, S and I).

Don't risk the rent money, if you cannot afford to lose it! :)

Peace and Merry Christmas! <><

[Rolo]

Definitely put some in S and some in I and I would check it every year, especially 2-3 years from now. 40C/40S/20I if you want definite numbers is pretty conservative.

[Spaf]

lovert wrote:
I have 17 years in with 6 more until I'm 50.(retirement date) I currently have $135,000, all in C-Fund. Where should my money be placed for the next 6 years?
Lovert.....Reference TSP. Take a look at the TSP web site. Go to returns and see the GFCSI rate of returns from 1988 - 2003. The funds have done good and bad depending on the market. At times the G fund was best, at times the S and I fund were best. It all depends on the market! By transfering funds at various times you can minimize losses and maximize gains. You are basically taking advantage of primary market movements and they are called bear markets (declines) or bull markets(advances). In 2003 we had a bull market that went into 2004 but it turned bearish for about 8 months and now its bullish. So the market fluctuates and that is where I (we) change allocations to best advantage.

The G fund is secure but slow growth, F is bonds, C is stock, S is small-med stock, and I is International. Everything except G has risk. Watch what other members are allocating and doing and some of the talk about the funds.

You can learn a lot by reading some of what members say. And then you can develope your own strategy that fits your needs for the next 6 years.

Rgds :) Spaf

[lovert]

Thanks alot, I think I be a little more risky:^

Could I ask how you are going to retire at 50 y.o. with 23 years? You are in FERS, right?

[Wheels]

My guess is he is either air traffic, fire fighter, or law enforcement. Each grants early eligibility at 20 years at age 50 or 25 years at any age.

Dave

[pyriel]

hmmm... i'm typing with one hand so this is going to be all lower caps. lets just say for argument's sake that lovert only have 135k for retirement and he will need to start withdrawing 6 years from now. even if he earns 20 percent a year, it will still not be enough to carry him for the rest of his retirement. im not good in math but lets just say he doubles that to 270k 6 years from now, anyone still thinks that will be enough to retire on. somehow, i don't think so. how about real estate. with 6 years to go, i am sure that you can build a portfolio that will allow you to receive a passive income that will support you when you retire in 6 years. it will be a little bit more work for lovert but i am sure that it will be worth his time.

hmmm... i'm typing with one hand so this is going to be all lower caps..

Ahh...got to ask...what is the other hand doing???

270K you will be lucky to be able to 1200 a month in interest...

passive income is the key...I would say you probably should not put more then 40% of your current holding at risk right now...even in the G fund you are just barely keeping up with inflation.

:)

[pyriel]

MarketTimer wrote:
hmmm... i'm typing with one hand so this is going to be all lower caps..

Ahh...got to ask...what is the other hand doing???

270K you will be lucky to be able to 1200 a month in interest...

passive income is the key...I would say you probably should not put more then 40% of your current holding at risk right now...even in the G fund you are just barely keeping up with inflation.

:)

MT, you crazy. The other hand is holding my 5 months old baby. I agree with you. Passive income is the key and this place is not going to give you that with the money currently set aside and 6 years to retirement. Broaden up your horizon and look at other ways to get your retirement going.

Pyriel

[cowboy]

Just a thought Lovert but what are you retiring on at 50! It is my opinion your going to have to roll your TSP into another retirment fund or take a beating drawing it out. I hope you have another job and if not keep the one you have. This means your going to have to support yourself until Social Security age. There are so many people working jobs they don't like. If you have a job you do not like you need to find one you enjoy and you will think your retired. Is this a well thought out plan? Plus that Social Security is changing for you, in other words your going to get less there.