tsp question

[wikedcobra312]

hey guys, i have a question regarding my tsp. what funds are you allocating your money, i basically have mine all in the g fund, i am too chicken **** to allocate to any other fund.my buddies at work say move it to the c s i fund. i dunno, any advice would be welcomed

 

[VP_07SRT8]

well i have 60 % going to G and 40% going to I international costs more so take about a year of inputing for it to start gaining but international has been going up over the years due to gas and the war but i have 350 a check going a month to it.

 

[GT400SC]

Here's how I look at it. Yes, the G fund is safer and the others are riskier but pay more. Early in your career, you can afford to "play" with your money and risk it somewhat. But as you progress and get closer to retirement, you should be moving it to the G fund after you've made your money in the riskier funds.

If you play the risky route early in your career and lose it or part of it, you still have the rest of your career to make it up. But if you play risky right before retirement and lose it, you're skrewed because there isn't enough time left before retirement to make it all back in the G fund.

Basically, the closer to retirement you get, the safer you want to play it. I know you have a long ways to go before retiring, so this is a good time to risk part of it before you settle down to the safer accounts.

 

[VP_07SRT8]

yeah thats my plan but for the first ten years im keeping it 60 40 like that then will move it all to G for the last ten

 

[wikedcobra312]

sweet, thanks guys.

 

[VP_07SRT8]

np anythign for a friend even tho im mad jealous

 

[beejay31000]

what hppens if you dont ahve the money to risk. can i risk anyone else's?? lol

 

[VP_07SRT8]

sure here is some money jk

 

[Mustangcwo]

You guys are right on point with the risk factor. However, you are all very young (under 55) and money for the future should not be idled in a G fund. Even at the age of 55, your money should be invested as 70% income producing (G) and 30% in riskier investments (C/G/I). After investing over the last 25yrs and surviving many rollercoasters, the riskier funds are producing 25% more equity then a G type fund.

Your young, enjoy longevity and don't worry about risk at this point in your life. Take it from us old guys, jump in and enjoy the ride. I recommend 40% I, 30% C, 20% S. The last 10% could go to G, but I would place it in the S fund.

Like I said, just some thoughts from the old guy.