PDA

View Full Version : TSP Discussed in Overall Portfolio Allocation



RealMoneyIssues
06-07-2011, 12:49 PM
Making Up for Lost Time -
A retired military serviceperson crafts a portfolio with an emphasis on income generation.

http://news.morningstar.com/articlenet/article.aspx?id=381777

Interesting to see his allocation... seems like a lot of non-equity dead weight (oh, and cash too).

Just saying...

Birchtree
06-07-2011, 01:11 PM
That's a good read but I try to stay away from mutual funds when given the choice. Dividends support asset prices.

RealMoneyIssues
06-07-2011, 01:32 PM
That's a good read but I try to stay away from mutual funds when given the choice. Dividends support asset prices.

True for investing, MF suck for trading...

Atarrin
06-07-2011, 03:45 PM
That's a pretty generous pension.

strates
06-07-2011, 04:22 PM
I don't get it. Why is he trying to save for $120k a year when from the numbers given it doesn't sound like he's ever made much more than $120k a year. Even if he is, why would anybody want to save 2/3rds of their income ($80k/yr) through your 50's. If he's really able to save $80k/yr, that means he should be able to live off from $40-$50k/yr.

Maybe I am looking at this wrong, but it sounds to me like he has some serious debt that he is trying to offset with a huge investment portfolio. I am going to guess he's upside-down in a house that he probably won't ever pay off. But that's just an assumption, since they avoid mentioning a lot of things in that article.

Whatever the case is with that, I'm also confused why she would advise him to stay in the G fund while getting rid of most of his cash. I guess that's more personal preference though.