@cbc8171 Not poor advice, I go for max long term growth. If you want to squirrel away some of your money in govt securities, and govt corporate mortgage backed bond funds (G/F funds for everybody else), enjoy. Your “go back one decade further” included the 2007 housing market crash and those who didn’t panic and move their allocations to G have been enjoying the double digit growth up since (give or take a year). It’s a long term game.
For the poster, the C fund is invested in a stock index fund that fully replicates the Standard and Poor's 500 (S&P 500) Index, a broad market index made up of the stocks of 500 large to medium-sized U.S. companies. The S Fund's investment objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index.
I fund? I may adjust and throw some in the future but with 25% of the fund based on Japans economy with their working population in decline..and another 17% invested in the UK economy?...Emerging markets and Canada are not included which I consider a fail compared to more broad International Index funds.
Even the “highest growth” Lifecycle fund L2050, has 25% I fund, 12% G fund, 6% F fund. Not counting the I fund, that’s 18% wasted in historically lower risk lower earning funds. As he gets older he could move some to F/G if he wants less risk.
Bottom line..I always encourage people to get smart and learn more about the funds then then do a lazy mans choice of Lifecycle funds or even listen to strangers. If he’s starting to significantly invest in TSP, it’s worth the effort to start learning his risk/reward tolerance.
For the poster, the C fund is invested in a stock index fund that fully replicates the Standard and Poor's 500 (S&P 500) Index, a broad market index made up of the stocks of 500 large to medium-sized U.S. companies. The S Fund's investment objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index.
I fund? I may adjust and throw some in the future but with 25% of the fund based on Japans economy with their working population in decline..and another 17% invested in the UK economy?...Emerging markets and Canada are not included which I consider a fail compared to more broad International Index funds.
Even the “highest growth” Lifecycle fund L2050, has 25% I fund, 12% G fund, 6% F fund. Not counting the I fund, that’s 18% wasted in historically lower risk lower earning funds. As he gets older he could move some to F/G if he wants less risk.
Bottom line..I always encourage people to get smart and learn more about the funds then then do a lazy mans choice of Lifecycle funds or even listen to strangers. If he’s starting to significantly invest in TSP, it’s worth the effort to start learning his risk/reward tolerance.