I've benefited greatly from everyone's wisdom in various message threads and wanted to post a question of my own. I'm a believer in JLCOLLINS approach that earlier on you should consider being 100% in VTSAX, With that in mind, my question is whether my wife and I are too cautious in our investment diversification.
A little background...My wife and I are both government employees who contribute the max to TSP and our IRAs (then convert to Roth), in addition to $12k/yr allocations to Vanguard and a 529 Plan. We are also fairly aggressively paying off our home with a 15 year mortgage. We both enjoy our jobs overall and likely won't leave them for another 15 years minimum. When we retire, if things hold the same -- yes, BIG IF -- we will get a pension equal to 1% times the number of years we have of government service of the average of our high 3 salary.
Investment allocation:
TSP money -- 100% into 2040 L fund (approx. 13% government securities, 10% fixed income (bond index), 39% common stock (S&P index), 16% small cap (Wiltshire 4500 index) and 22% international (international index))
Roth IRAs -- 100% in VTSAX
Investment Account -- 100% in VTSAX
My question is whether others would think it was preferable for me to replicate VTSAX in our TSP accounts, something like 75% S fund (S&P index) and 25% C (Wiltshire 4500 index)? I'm thinking that our pensions are comparable to government bonds (maybe some changes -- like continuing to increase employee contributions -- but largely the same) and therefore our net bond-like exposure is too high for our risk tolerance. Thoughts?