Thoughts on this TSP allocation?

[michaelsu]

Of course, everyone’s preference changes based on risk and other factors, but what do you guys think of this TSP allocation?

30% L-2050
25% C
30% S
15% I

When you factor in the L-2050, the final allocation as of late 2019 is approximately..

37% C
34% S
24% I
3% G
2% F

Over time the 30% in L-2050 will lightly increase G and F while contributions in the raw funds will ensure a relatively aggressive stock position.
(All numbers above are appx)

 

[resjudicata]

@michaelsu This is very close to mine. I feel like it's not a bad allocation.

 

[michaelsu]

@resjudicata Good to hear, I must agree that it’s quite solid. Full L-2050 allocates too much to G and F, around 19%!

 

[resjudicata]

@michaelsu I agree. I would prefer that later as the years go on but now I want higher interest rates from stocks.

 

[cbc8171]

@michaelsu L2055 and L2060 come out in a few months and will be adopting the new asset allocation strategy that'll bring them more in line with industry peers. I would check them out as they will be overweighted in equities and underweighted in fixed income compared to current L funds.

 

[bellpepper]

@michaelsu Depending on your age and risk tolerance. I’m full throttle till I’m 50. I’m split between the C and S. I’m ok with a lot of risk. I don’t mind working a few extra years to get the most out of the market.

 

[dreamergirl]

@bellpepper Same allocation here, did 16% return from Jan-Dec this year

 

[cbc8171]

@michaelsu If you already know the final allocation weights, why not just put themselves there yourself?

Then you could choose more F over G (my recommendation).

 

[boxofficerevolutionary]

@michaelsu Look at the L-2060 fund when it becomes available next year. Last I saw, it will start near 100% stock after TSP adjusted the glide paths to be less conservative for all of the funds.

 

[typo]

@michaelsu Makes more sense to either use an L fund completely or allocate for yourself typically. I'd look into what each fund is and base your strategy on a sound knowledge base or let tye L fund do what it is designed to do in that you allocate your entire funds to it and let it diversify for you. Either you agree with L fund allocations or you don't. If not just do it yourself. If you do then let it do its thing.