I'll take a neutral over a negative everyday day. Speaks to staying in through some discomfort but at least things are looking up now. Should be a pretty good year.
I'll take a neutral over a negative everyday day. Speaks to staying in through some discomfort but at least things are looking up now. Should be a pretty good year.
kb9nvh,
With 5 years to retirement you should not be invested in too much risk. Right now you are at 0% risk and basically 0% return. That will not get you to the Cool Mill you want. You will have to max out your contributions ($18K max 401(k) + $6K catch up + 5% match) and get about 8%/year to get there. That 8% is really 5% after inflation.
The L2030 could get you there - but therein lies the problem You will be retiring in 2020. The L2030 had a 2008 drawdown of 23% while the L2020 drew down 11%. The L2020 was 12 years out from retirement back in the day, the L2030 is 15 years out. My guess is that the L2030 could have a drawdown of about 16% if we had another 2008. Do you have the time to make up 16% - 20% of your asset base.
Finally, you bailed to 100% G in a market with very slight moves. If you keep doing that you will miss the good days like today. If you miss the good days like today my guess is that you will definitely not make the 8% you need. You have got to get an allocation you can stomach and then bet on the edges. Alevin has stuck it through with 15% in C this year when she would normally bail out. She has the properish sticky pants on in relation to her stomach issues.
Lookin' up at the 'G Fund'!!!
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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