Young Investor Looking for Guidance With TSP

[SeaBass]

Hello all,

I am a 26 year old single guy who just got into my TSP account and allocations. I don't have much and its all sitting in the G fund at the moment. I moved my future allocations to CSI 60/20/20. Should I interfund transfer my current G savings into the CSI? Any other tips or tricks for a young lost soul would be greatly appreciated.

Thanks in Advance.

[Acorns]

If you are giving any thought to TSP allocations you aren't that lost! You are off to a good start with a CSI 60/20/20 allocation. It's really up to you and your risk tolerance what you want to do with the G fund. I have always kept a small percentage (around 10%) in the G fund. It is pretty easy to transfer money between funds, so if you want to transfer it you can always move it back. However, I would advise against moving money around too often, best just to make a decision and stick with it (besides occasional rebalancing, if you want to do that). Make it your goal to increase contributions by 1-2% (or more) each time you get a raise, whether for a promotion, annual COL adjustment, or years in service. Ultimately try to max out your contributions!

[Taco7]

I agree with the above.  I've been in it 18 years, mostly aggressive (C,S,I), and my only regret is not maxing the amounts as soon as possible.  Good luck! 

[sol]

I'm an advocate of the L funds.  You get automatic rebalancing at no extra cost, and the allocations are excellent.

 

[Beach_Stache]

I am most aggressive as well, all in C/S, I never went into the I fund but have thought about it.  I will have 30 years in in 2038 but still opted for the 2050 Lifecycle fund at one point as I wanted it balanced but most aggressive as I didn't plan on tapping it until age 70 (in 2015) but someone on this forum pointed out to me that there is a certain amount in bonds already in the 2050 fund so I think only like 70% of it was in stocks in the 2050 fund.  They said that they treated their pension like their "bonds" since it's a steady stream of payments and just left it all in stocks.  I changed at that point as I sort of agree with it.  If I get 30 years in we'll be able to live mostly off of the pension (maybe half) and then the other half from TSP.  I know a crash is coming (but thought it would have come in the last year) but the market keeps going up.  I figure I've got time to weather the storm and just leave it all in the C/S funds.  I can stand a 30-40% decrease if a crash comes though, knowing that I've got another 20-30 years where I won't be touching this money.  I imagine my mind will change when I'm closer to retirement, but you're young and have lots of market crashes that will come and go!

[Fomerly known as something]

Personally I'm 10-12% into the G/F and the rest is give or take 40% C, 25% I, 25% S.  I consider re-balancing at the most quarterly.  I too mostly follow the idea of my pension as my "bonds".

I also have a Roth 100% in stocks and a taxable account split 70/30.  I will use the taxable 1st to supplement the pension followed by the TSP money and than the Roth if I ever get to the Roth which is why my accounts have different ratios.