Re: Advice please home/tsp in retirement
Originally Posted by
ravensfan
Maybe I am not understanding, but wouldn't paying off the loan free up what would have been designated for a monthly payment? If the loan was paid off, you would only need to come up with real estate taxes and and homeowners insurance. I'm confused???
It's not really a gamble. Dave123 apparently can invest the proceeds from the sale of his prior house - which exceeds the cost of his new house - without much concern for retirement spending needs. All he has to do to break even is clear an average annual return of 3.5%. The only concern I would have is that he made 3.5% on his TSP account last year - a year where the C-Fund (S&P500) made 31.1%. That means he is a very risk adverse investor. That is risky in itself. He should invest to a point where he reaches 7% to 8% to safely cover the cost of the home and grow his retirement savings and overcome the effects of inflation.
I think he has addressed that issue by attaining the services of Edelman Financials. Just remember, Dave, they do not 'market time' in the sense folks around here do that. They do, however, re-balance at opportune times - for example they sold bond and 'cash' holdings in March and bought stock holdings and other 'risky' assets. So they sold high (bonds and less risky assets were at a premium) and bought low (risky assets were in a panic sale phase) simply because the less risky assets were now over-represented in the allocation in relation to more risky assets. They reversed that in mid-August by buying less risky assets with the growth of more risky assets. It looks like they have made the equivalent of 4 IFTs in my Edelman account since February. I very much doubt that an Edelman advisor would recommend to Dave that he camp his house sale proceeds in an allocation expected to return 3.5% - thus, over time he will gain by doing this.
By the way Dave, your advisor probably worked with you on your TSP holdings. If not, set a meeting. At the very least you can look at the pie chart on their website and configure your TSP closely to that. I do that - but I kinda sleuth out three different allocations based on projected mood. I have a normal allocation, and aggressive allocation, and a conservative allocation. Then I play on the edges of those based on the flight of birds from the Temple of Jupiter.
Lookin' up at the 'G Fund'!!!
Bookmarks