The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: EricP on August 19, 2015, 11:22:45 AM

Title: TSP Allocation
Post by: EricP on August 19, 2015, 11:22:45 AM
Didn't find any good discussions about TSP Allocation so I figured I'd start one.

I'm currently running 10/56/14/20 (F/C/S/I).  I read that a 4:1 C:S ratio mimics VTSMX as well as possible.  20% I Funds just because, and a 90/10 stock/bond mix because it fits my current risk tolerance.

Is this good, bad, indifferent?  Any other thoughts?
Title: Re: TSP Allocation
Post by: forummm on August 19, 2015, 12:29:00 PM
That sounds like a very reasonable allocation. I think it's actually about a 75/25 C/S split to mimic VTSAX. But you're close enough. I'd say your allocation is fine if it aligns with your IPS
http://www.bogleheads.org/wiki/Investment_policy_statement
Title: Re: TSP Allocation
Post by: Drifterrider on August 20, 2015, 11:54:38 AM
Didn't find any good discussions about TSP Allocation so I figured I'd start one.

I'm currently running 10/56/14/20 (F/C/S/I).  I read that a 4:1 C:S ratio mimics VTSMX as well as possible.  20% I Funds just because, and a 90/10 stock/bond mix because it fits my current risk tolerance.

Is this good, bad, indifferent?  Any other thoughts?

Have you done this long enough to be able to make a comparison of the returns against a life cycle fund?
Title: Re: TSP Allocation
Post by: EricP on August 20, 2015, 12:33:53 PM
Didn't find any good discussions about TSP Allocation so I figured I'd start one.

I'm currently running 10/56/14/20 (F/C/S/I).  I read that a 4:1 C:S ratio mimics VTSMX as well as possible.  20% I Funds just because, and a 90/10 stock/bond mix because it fits my current risk tolerance.

Is this good, bad, indifferent?  Any other thoughts?

Have you done this long enough to be able to make a comparison of the returns against a life cycle fund?

I haven't, but I could always look at the performance over the last X years and figure it out, but based on the amount of G funds in L funds I already know that L funds perform relatively poorly.  Even the L2050 has ~10% G Fund and the L2040 has ~20%.