Author Topic: Fiancee's bad allocation  (Read 1337 times)

El Gringo

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Fiancee's bad allocation
« on: December 03, 2017, 07:06:42 PM »
Ugh, I recently looked at my fiancee's TSP, and since she started work like 7 years ago, her TSP has been allocated to 80% government bonds. She had no idea that this was the case, nor understood the ramifications of what she has missed out on over the past 7 years.

I know everyone here says that we'd just be trying to time the market if we hold off in moving her money to equities (and all these years have been laughing at people who have intentionally stayed out of the market because they thought it was at the peak). At the same time, it's really hard psychologically to move all that money into equities, when I think to myself, "How much longer can this bull run really go? If we just wait until the next crash, we can make up for at least *some* of what she's missed out on." At the same time, who knows. Maybe this will continue to be a historic run, and I'll continue to kick myself for not getting her money in.....

What say the community?
« Last Edit: December 03, 2017, 08:13:19 PM by El Gringo »

Exflyboy

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Re: Fiancee's bad allocation
« Reply #1 on: December 03, 2017, 07:14:58 PM »
Max out the contributions if possible and set it all to the correct allocation.. Anything else is market timing.

If she has more than 15 years of work left that allocation can be 100% stocks.

El Gringo

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Re: Fiancee's bad allocation
« Reply #2 on: December 03, 2017, 07:30:42 PM »
Max out the contributions if possible and set it all to the correct allocation.. Anything else is market timing.

If she has more than 15 years of work left that allocation can be 100% stocks.

Thanks. Also, I forgot to add - she's currently in school and so not currently making any contributions.

ChpBstrd

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Re: Fiancee's bad allocation
« Reply #3 on: December 03, 2017, 08:29:53 PM »
Don't let the sunk costs fallacy get you. The mistakes of the past don't matter.

If you inherited the money today, what would you do with it?