Re: Asset allocation at TSP...
That is a high risk allocation for someone within five years of retirement.
Just guessing, but I would hanker that such an allocation would have lost 35% peak to trough in 2008/9.
Can you handle that? At what point would you rebalance? If you cannot handle it and have no rebalance plan than I would maybe do 50% in the market and 50% out of the market - and, some would consider that risky with a five year horizon. I remember losing 16% in two (2) days in October of 2008. I was actually +7% till then, got back into the market, and could not get out in time to avoid losing the 16%. Not a good time - and, I was 17 years from retirement then...
Why live in fear for 2% - 3% in annual gains at this point?
Lookin' up at the 'G Fund'!!!
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