TSP Lifecycle Funds vs C, S & I Funds

[Beach_Stache]

I currently have all of my TSP money in the Lifecycle 2050 fund (about $360k).  Even though I plan on retirement before then, probably by 2038 or 2042 I put it in here so I don't have to manage it and so it's the most aggressive.  My thought was as the 2060 fund comes out to just put it in there, but that may be a bag thought.  Rather than just putting it in the most aggressive Lifecycle fund, should I be putting everything in the C fund and just leave it?  Currently (as of July 2016) the allocation of the 2050 L fund
12.13% G Fund - Government Securities
3.87% F Fund - Fixed Income Index
44.14% C Fund - Common Stock Index
14.66% S Fund - Small Cap Stock Index
25.20% I Fund - International Stock Index
So it's fairly aggressive with around 85% in Stock's, but what do my fellow Government MMMers do?  Do you have your TSP all in C or do you choose Lifecycle funds?  Is my allocation fine or should I be more aggressive and put everything into C?  I would love to hear what everyone else is doing.

[ZMonet]

I would agree that the TSP funds are not aggressive enough for my liking.  I count the pension I will receive, based on my target retirement date, as a government bond.  If you do that, I think you'll see that you're actually investing fairly conservatively even with the 2050 fund.  Thus my choice to go 100% C.

[BTH7117]

I would agree that the TSP funds are not aggressive enough for my liking.  I count the pension I will receive, based on my target retirement date, as a government bond.  If you do that, I think you'll see that you're actually investing fairly conservatively even with the 2050 fund.  Thus my choice to go 100% C.

This is exactly my thinking.  I am mostly in C with some S and I.  The Lifecycle funds are pretty conservative when you include your pension.

[Gunny]

I retired last August.  I too use my Federal annuity as a bond fund, so invest in 100% stock funds inside my TSP.  I HAVE 60% in C and 40% in S so as to cover the entirety of the US market.  I feel that there is enough exposure in foreign markets by US companies that I'm getting enough foreign exposure without investing in the I fund.  Im not tapping my TSP yet as I am 53 and don't won't to give up the control I would have to to take SEPP distributions.  I also have Roth IRAs in Vanguards Wellington fund which does give me some US bond exposure.

[MilitaryMedicineMustache]

You could forego the L funds altogether or just redistribute a portion into the C fund.  Last I checked, the L2040 and L2050 fund share prices were around $2-3, whereas the individual funds were in the $12-17 per share range, so it might make more sense to stick with the L funds if you are still investing heavily?

[abhe8]

I'm also in the mostly C, some S and some I camp.

[Sailor Sam]

I use the L 2040 fund, and i agree that it's becoming uncomfortable conservative. I've been using my IRA and after tax accounts to keep my overall allocation a 10% cash, 10% bond, and 80% stocks. There's no real reason to change my TSP allocation, but I find myself wanting to play.

If I do switch funds, I'll to to 2050, or 2060. I could invest in individual funds, but eh.

[Beach_Stache]

Thanks for the input!  I lean towards being more aggressive and great points about the pension, if anything did happen I could certainly weather the storm with that alone.  I think I'll probably shift from L 2050 towards the C funds and maybe a bit in S and I.  I still have plenty of time!  Thanks!

[fattest_foot]

With how few funds there are available, and how clear they are in what they are, I decided to just do my own allocation.

I'm currently 80% C, 20% S, which apparently mimics the broad market pretty well. At some point I'll probably add the I fund. Despite all the "no risk" talk about the G fund, it also has pretty poor returns so I don't bother.

I also agree that the L funds aren't really worthwhile, especially for the MMM community (read: any target date funds).

[JJ-]

I never really have understood why somebody retiring on a pension would want to use either the F or G funds, or even the lifecycle funds, but I guess my risk tolerance is a bit higher.

I have 55% C fund, 20% S, and 25% I fund.  Yeah, I'm missing some international exposure, but I let the vtiatx cover the rest of that in IRA/taxable accounts for worry-free living.

I rebalance in October for some reason. I guess that's when I think about doing it?