What's the best federal government TSP fund for someone who has about 13 more years b/4 retirement? Have been considering the L2020, but not sure.
2007-01-08 11:34:46 · 5 answers · asked by JusMe 5 in Business & Finance ➔ Investing
I do 60% C, 20% I and 20% S since the new funds were announced a few years ago. I have 14 years till eligible. My assumption is based on me being FERS and I assume you are as well. We will need slightly higher returns due to our low pensions, so I wold think the lifecycle 2020 would have less risk but perhaps a slightly lower overall return. Lastly, I have traded with the Jim Cramer philosophy that indicates that if the money is not needed for at least 10 years that you balance your portfolio with Large Cap, International, and Small Cap. Good luck!
2007-01-08 13:02:39 · answer #1 · answered by toledogolf 4 · 0⤊ 0⤋
Diversify in a way you feel comfortable. People are different and have different tolerance for risk. But if you are completely adverse to risk, you are also "condemned" to low return on your money (Bruce Williams). I move my little money around all the time, I think I currently have 50% G, then the rest in the others except the F fund. F fund is not good for right now although I have made huge money on it in the past. You should read some financial stuff (current) so you have a sense of what is going on in the markets and base your moves on some insight rather than pure guessing.
2007-01-08 21:34:27 · answer #2 · answered by The Scorpion 6 · 0⤊ 0⤋
The L2020 would be an ok choice, but I recommend you build a diversified all equity portfolio, like 25% international, 25% small cap, and 50% large cap. That is, don't include bonds (subject to your risk tolerance). Bonds barely outperform inflation. After taking inflation into account, Stocks outperform Bonds 3 to 1.
You just have to have the courage to hold on to your investments even when the market goes down 20%. A lot of people make the mistake of selling when that happens, so they guaranteed their loss. You also have to understand that you still have a chance of running out of money if you take out more than 4% per year.
That said, you should still discuss your options with a fee based financial advisor who doesn't accept commissions.
2007-01-08 20:09:50 · answer #3 · answered by aaronchall 3 · 0⤊ 0⤋
If your young, anything aggressive growth (30%), value (30%), and then a blend of bonds (10%) and emerging/international markets (30%)
2007-01-08 20:17:55 · answer #4 · answered by Anonymous · 0⤊ 0⤋
i would sta away from government investments all together.
2007-01-08 20:36:17 · answer #5 · answered by Anonymous · 0⤊ 1⤋