Author Topic: TSP question  (Read 6302 times)

Killerbrandt

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TSP question
« on: June 01, 2015, 09:49:10 AM »
I am wondering what investment percentage people use in their TSP accounts (its a federal government retirement account, like a 401k). I currently have it spread out at 80% C, 10 I, and 10 S. What percentage are you guys doing and what do you recommend? I am not doing a target fund, I just want to know what others are spreading percentage wise on the their funds. I am 27 years old and plan on keeping it in for 23 years at least, because then I might be able to right from the federal government early and start withdrawing it then.

partgypsy

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Re: TSP question
« Reply #1 on: June 01, 2015, 10:27:57 AM »
I will be 48 years old this year, and my allocation is 24% G fund, 10% F fund, 37% C fund, 11% S fund and 18% I fund.
It was based on one of the couch potato funds with a little tweaking.

I should probably go a little higher in my stock allocation, but I also have some ambivalence to doing that as well (I'm a little risk averse, so would prefer to have lower % of stocks but not change things during a downturn).

Killerbrandt

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Re: TSP question
« Reply #2 on: June 01, 2015, 10:32:12 AM »
I will be 48 years old this year, and my allocation is 24% G fund, 10% F fund, 37% C fund, 11% S fund and 18% I fund.
It was based on one of the couch potato funds with a little tweaking.

I should probably go a little higher in my stock allocation, but I also have some ambivalence to doing that as well (I'm a little risk averse, so would prefer to have lower % of stocks but not change things during a downturn).

Actually that is a very good spread you have! I will write that down for sure, because down the road I want to be less risky! What is your average interest earning right now? I am getting about 15 percent. Also, are you planning on retiring at 50? or going a little longer?

dramaman

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Re: TSP question
« Reply #3 on: June 01, 2015, 10:38:36 AM »
I used to 'maintain' my own balances in both mine and my wife's TSP. I decided I really wasn't doing a good job in shifting between funds when they became out of balance and switched over to using the age-related L-Funds in the last year. Most of my funds are in L 2030, with about 5% in L 2020. I'll probably retire closer to 2020 than 2030, but want the more aggressive allocations of 2030.

Killerbrandt

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Re: TSP question
« Reply #4 on: June 01, 2015, 12:26:05 PM »
I used to 'maintain' my own balances in both mine and my wife's TSP. I decided I really wasn't doing a good job in shifting between funds when they became out of balance and switched over to using the age-related L-Funds in the last year. Most of my funds are in L 2030, with about 5% in L 2020. I'll probably retire closer to 2020 than 2030, but want the more aggressive allocations of 2030.

Are those funds doing pretty good?

dramaman

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Re: TSP question
« Reply #5 on: June 01, 2015, 12:51:20 PM »
They're trailing the C (S&P500) fund, but that's to be expected.

L2020's past year performance was 5.06% holding the current fund balances:
G - 44.15%
F - 5.48%
C - 27.17%
S - 8.10%
I - 15.10%

L2030's past year performance was 5.75% with balances:
G - 28.83%
F - 5.92%
C - 34.10%
S - 12.10%
I - 19.05%

Each of the individual core funds had the following 2014 performance:
G - 2.31%
F - 6.73%
C - 13.78%
S - 7.8%
I - -5.27%

As you can see, I's negative return really pulled down the overall return for the L funds.

captainawesome

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Re: TSP question
« Reply #6 on: June 01, 2015, 01:02:17 PM »
I've been more neglecting of my retirement management due to other things going on in my life, so I opted for the L-fund. At this point I am trying to get as much as I can in there while I can, and worry about distribution between the funds later. Might not be the best approach, but that's my preference.

*Edit- I did go back and review, they are all the same cost really (except c Fund). I must have been going off of some bad info, thanks for pointing that out!
« Last Edit: June 02, 2015, 08:28:54 AM by captainawesome »

dramaman

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Re: TSP question
« Reply #7 on: June 01, 2015, 01:41:02 PM »
I've been more neglecting of my retirement management due to other things going on in my life, so I opted for the L-fund. At this point I am trying to get as much as I can in there while I can, and worry about distribution between the funds later. Might not be the best approach, but that's my preference for a slightly higher management cost.

Is the management cost higher with the L funds? At one time I thought I looked at the L fund's fee and found it fairly equivalent to that of the funds of which they comprise. I didn't see any extra costs on top of what owning the relevant percentage of the core funds would incur.

partgypsy

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Re: TSP question
« Reply #8 on: June 01, 2015, 01:50:22 PM »
I will be 48 years old this year, and my allocation is 24% G fund, 10% F fund, 37% C fund, 11% S fund and 18% I fund.
It was based on one of the couch potato funds with a little tweaking.

I should probably go a little higher in my stock allocation, but I also have some ambivalence to doing that as well (I'm a little risk averse, so would prefer to have lower % of stocks but not change things during a downturn).

My 12 mo return from 4/30 to 4/30 is 7.18%. But it has really varied widely due to the time period I was invested in.
The L Funds as 0.029%. Actually all of the funds are listed as .029%, except for C which is 0.028%.
I had a recollection that the different funds had slightly different fees, but maybe I am misremembering.

I am actually a visitor from the get rich slowly site, so I am planning on retiring at 62, so no I am comfortable with this mix for the long haul, probably won't change it too much until closer to retirement. I personally didn't like a number of the slopes of the lifetime funds, where I felt they were rather conservative (reduced the % of stocks too quickly) for me. I plan to have a significant exposure to stocks even in retirement.
« Last Edit: June 01, 2015, 01:57:24 PM by partgypsy »

forummm

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Re: TSP question
« Reply #9 on: June 01, 2015, 01:59:25 PM »
Don't worry about which funds are doing better than others. Just stick to your asset allocation strategy. If you want to approximate the global market cap, you can put your equity portion:
40% C
10% S
50% I
And for bonds you can approximate the total bond market with
65% G
35% F

Just multiply those percentages by your desired proportions of stocks and bonds respectively.

L is another great option that automatically balances things for you in a particular way.

Killerbrandt

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Re: TSP question
« Reply #10 on: June 02, 2015, 05:08:52 AM »
Don't worry about which funds are doing better than others. Just stick to your asset allocation strategy. If you want to approximate the global market cap, you can put your equity portion:
40% C
10% S
50% I
And for bonds you can approximate the total bond market with
65% G
35% F

Just multiply those percentages by your desired proportions of stocks and bonds respectively.

L is another great option that automatically balances things for you in a particular way.

Hmm I will have to consider this layout! Thank you all so much! It's nice seeing and knowing others are in the same boat.

davisgang90

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Re: TSP question
« Reply #11 on: June 02, 2015, 07:26:20 AM »
I'm 70% C, 15% I and 15% S.  No bonds since my military pension gives me plenty of bond-like influence in my portfolio.


bdc

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Re: TSP question
« Reply #12 on: June 02, 2015, 10:29:16 PM »
I have a lot of 'I' in my TSP, because (such as my wife's 401k options and my state's 529) do not have low-cost international funds.  I over-weight 'I' in my TSP, and buy only domestic stocks in the other accounts.

dhlogic

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Re: TSP question
« Reply #13 on: June 02, 2015, 10:44:02 PM »
I try to approximate the total stock market within my TSP portfolio, much like VTSAX.

Using the info from this vanguard link, I'm 80% C and 20% S.

https://personal.vanguard.com/us/funds/tools/benchmarkstatistics

MsPeacock

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Re: TSP question
« Reply #14 on: June 03, 2015, 05:18:59 AM »
I realize that I am someone who doesn't do very well at balancing and tracking and understanding various ratios for investing. So, now that there are the 2020 and 2030 funds my new allocations are going there. I have other retirement monies in stock index and bond index funds through Vanguard.

ETA: I am late 40s, realistically probably 15 years from retirement (hopefully...).
« Last Edit: June 03, 2015, 06:06:19 AM by MsPeacock »

mikesinWV

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Re: TSP question
« Reply #15 on: June 03, 2015, 05:45:40 AM »
C:  50%
S:  20%
I:   10%
G:  7%
F:  11%

Early 40s. 

forummm

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Re: TSP question
« Reply #16 on: June 03, 2015, 07:31:20 AM »
I realize that I am someone who doesn't do very well at balancing and tracking and understanding various ratios for investing. So, now that there are the 2020 and 2030 funds my new allocations are going there. I have other retirement monies in stock index and bond index funds through Vanguard.

ETA: I am late 40s, realistically probably 15 years from retirement (hopefully...).

If you're late 40s and not retiring for 15 years, the 2020 fund is likely too conservative for you, unless you are very risk adverse. Over the next 15 years, the 2030 fund should perform somewhat better. And the 2040 fund even better. Generally picking a target date around the time you hit 65 is a reasonable way to go.

Killerbrandt

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Re: TSP question
« Reply #17 on: June 03, 2015, 09:23:00 AM »
I'm 70% C, 15% I and 15% S.  No bonds since my military pension gives me plenty of bond-like influence in my portfolio.

That's what I just switched today! lol

Killerbrandt

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Re: TSP question
« Reply #18 on: June 03, 2015, 09:24:22 AM »
This is great guys! Thanks for sharing!