2008 did the same thing to me! BUMMER!mouse.gif
The F-Fund will continue to decline till the average yield is some margin greater than the FED Funds rate. The AGG yield is currently around 4.75% with an 8.5 year average maturity date. The FED Funds Rate is currently at 5.25%. This means that the new bonds going into the F-Fund will have an interest rate something higher than 5.25%. The Big Boys will not invest in bonds for free. So, wait. Buy in when the yield is at or above the FED Funds Rate. Just a guess, but...
Bullitt, I'm within three to six years of the Golden Watch. Right now, I am trying to allocate enough to G-Fund to pull my needs and wants out over seven years once I factor in 75% of both Social Security and Pension. Why 75% of what is promised - because SS wil pay out a bit more than 75% of promised even if they do not borrow to pay to promise. So, that is a safe bet for Social Security - and, our pension is 'invested' in Social Security bonds, so... . Anyway, that is my personal 'Lock Box'. What I was thinking of doing in my Golden (not Shower) Years was IFT to G before the monthly distribution and reallocate after. That way, the distribution is pulled only from the G. I don't know if that will work and it puts a limit of 1 forward IFT, but it is something I am looking at. I have no way of testing it.
The bummer is that I will never again be in sniffing distance for the monthly prize. Then again, I should never be within sniffing distance of the 'Big Booby Prize in the Sky' - some event like 2008 catching me in a slumber and losing half my mullah.
Lookin' up at the 'G Fund'!!!
Hi, I was wondering what you would suggest a 68 year old, retired ATC'er with a very good pension and SS that covers all of my expenses should do with my TSP???. most advisors go with the "age Rule" 100-68 would be 32% stocks, 68% bonds and cash. With the "G" fund returning about 4% right now, it would seem logical to leave it all in "G"??, Thoughts?? TIA. Leigh
Hi skycophigh,
I don't really have a suggestion but as an FYI, the L-income fund, which is typically considered an allocation for retired folks and may not be aggressive enough for you, is currently allocated as follows:
G Fund 69.38%
F Fund 5.63%
C Fund 13.06%
S Fund 3.18%
I Fund 8.75%
So it's closer to 25/75 stocks to bonds and cash
Tom
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I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Like Tom said, it depends on how aggressive you want to be with your TSP account. You will have to start drawing from your account in about 4 years. So, something else to think about is how you will want to reinvest the monthly check you will be getting from TSP. That might help you decide what to do now. I'm guessing over the next couple of years the "G" fund will fall back to around 1-2% once we start moving out of this recession.
May the force be with us.
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