How should I allocate my money throughout the government's Thrift Savings Plan funds?

Question

I am investing for the long term (i.e. 30+ years) and want to know what people think is the best allocation of TSP funds for now and/or for the long haul.

Right now I put %50 in the C fund, %25 in S, and %25 in I. Obviously I'm willing to be aggressive but I'm also not averse to switching things around every now and then if it's going to help me.

For those not familiar with the TSP:

C Fund = Large US companies (S&P 500)
S Fund = Medium and small US companies (Wilshire 1500)
I Fund = International Companies (Europe and Japan mostly)

Answer 1

You are doing it right. You do want to be earning 7% or more to gain worth and not just money (remember, you always have to factor in inflation and taxes), but you can't control that.

The only real control you may have is to put less in when the markets are doing well and the stock are high and pour money in when times are tough and the markets are selling stocks at greatly reduced prices. That might seem strange to pour in money in stocks when the food lines become blocks long, but when the good times hit again, you can be sitting pretty while people are still recovering. The same could be said for all those people not saving during the high times just to wind up at those soup kitchens when times get tough.

Also don't really fret over the markets. They go down, stay sideways and go up. Neither the really good times or the really bad times last that long, at least in the past 25 years.

Answer 2

you are a brightness and advisability person;
i think you wiil get more from your plan