TSP Allocation Question

[paparazi257]

@siesaw23 This year is market has been down. So nobody is really making a whole lot most are losing in the short term. but we are basically getting more shares than average every month that will be great in the long run.

 

[siesaw23]

@paparazi257 Good point, I’ve been wanting to get into the C/S funds for a while so now might be a decent time with the market being down these past few months.

 

[glencora63]

@siesaw23 You're already in C/S, you just don't know it. The L funds are all comprised of various combinations of C/S/I/F/G, with the further target dates tilted more towards C/S/I and the nearer target dates tilted more towards F/G. The L funds are an "easy button" for folks who don't want to constantly watch the markets and make strategic investment decisions, and there's nothing wrong with that, but the 5 main funds allow more granular control over your asset allocations if that's what you want. But don't feel like you're missing out on anything being in an L fund.

 

[holywalk]

@siesaw23 Allocation is great, but can you afford more than 10% get it as close to 20-25% as you can!

 

[areelius]

@siesaw23 C-70%
S-20%
I-10%

 

[winter_rose]

@siesaw23 You should be in the lifecycle fund unless you have a compelling reason for deviating from that. The following are not good reasons...

• "insert fund fund performed really well this insert time period." Past performance does not guarantee future performance, especially when it comes to market returns.
• "I want to be more aggressive", The life cycle funds are very aggressive early on.

"My NCO told me..." Your NCO can barely read and drives a lifted F350 he's been trying to pay down for the last 8 years. Don't take financial advice from your NCO.

admittedly I’ve been hands off on my TSP thus far

Good! You're not supposed to actively manage it! It is literally built to be set and forget.

L2050 fund that hasn’t returned much

Ummm dude you are only 24, you are in the wrong lifecycle fund. 2060 is a much better fit for you.

Hit me with any tips y’all got!

Don't chase performance. Look at the returns of the S&P 500 (C fund) from 2000-2010. It returned almost nothing for an entire decade. Meanwhile international crushed it. You should stay diversified, including internationally and focus on predictable long term returns while you focus on your career/education.

If you want to chase higher risk investments, do it outside of your tax advantaged accounts. That spaces valuable and you don't want to waste it.

 

[jayallen]

@siesaw23 100% C. You’re an E4 with an investment horizon of 40+ years. Besides, the C fund is effectively an index fund, it’s not like you’re putting all your money in an individual stock or shitcoin.