2050 or 60/20/20?

[GREENBAYPACKERS]

im 30 with a little over 100k. been in 2050 but thinking of going csi 60/20/20 and letting it ride for a decade. thoughts?

 

[oktogo]

im 30 with a little over 100k. been in 2050 but thinking of going csi 60/20/20 and letting it ride for a decade. thoughts?

There are some here that can give you a more precise answer, but my opinion would be to wait and read what some of the more experienced posters here do in the coming months. There seems to be a consensus that we are due for a 10%+ market pullback soon and it would be ideal if you bought in then. If you are focused on setting and forgetting it may not matter, but some patience in the short term could pay off big for you.

 

[uscfanhawaii]

im 30 with a little over 100k. been in 2050 but thinking of going csi 60/20/20 and letting it ride for a decade. thoughts?

What you are asking about is 'Dollar Cost Averaging', and it is definitely a bonafide strategy. Basically, you set a mix and if the market goes down, you are buying low. When it goes back up, you get an extra kicker from those shares that you bought for a bargain. Search threads on Dollar Cost Averaging or DCA for more discussion.

I followed DCA strategy with a 33/34/33, C/S/I mix for my first 20 years in TSP. And it worked out pretty well. (Although I had to stomach a drop from $300K to $160K at one time. Boy, I got new shares for half price!) It did recover nicely, but took a few years.

I don't know why a 30 year old would want to have ANY $$ in G or F. And if you are in any L, you have some in both G and F. Definitely better than all G and/or F, but not helpful in my opinion. (I gave this same advice to my 30 year old daughter.)

The actual % mix is up to you, and you may want to evaluate it once a year or so to see if you might want to adjust it. If you are all in equities, they tend to track together. But, IN GENERAL, S tends to have higher long term returns, but is also more volatile.

GOOD LUCK in your investing. Good on you for evaluating different investing strategies!! :arms:

 

[GREENBAYPACKERS]

thanks for the advice guys - I just switched to 60/20/20. i'll watch it for a few months, I know the I fund is doing really well now but over time it's return is way down compared to C/S right? maybe I should do something more like 45/45/10. I dunno...

also, is 100k good for a 30 year old? im putting 10% in with 5% match. 10% goes to roth traditional and 5% goes to the roth. just hoping I'm on track...thanks again

 

[weatherweenie]

also, is 100k good for a 30 year old? im putting 10% in with 5% match. 10% goes to roth traditional and 5% goes to the roth. just hoping I'm on track...thanks again

You can use the TSP calculator to find out if your balance and contributions are good, or not. Depends on how long you plan to work, and what amount you would like to have in your TSP when you retire.
https://www.tsp.gov/PlanningTools/Calculators/howSavingsGrow.html

 

[Skorcher]

thanks for the advice guys - I just switched to 60/20/20. i'll watch it for a few months, I know the I fund is doing really well now but over time it's return is way down compared to C/S right? maybe I should do something more like 45/45/10. I dunno...

also, is 100k good for a 30 year old? im putting 10% in with 5% match. 10% goes to roth traditional and 5% goes to the roth. just hoping I'm on track...thanks again

$100K can be an excellent start depending on how many years you've been a fed and what your salary is. Try to gradually increase your 10% when you get pay raises so that by the time you're 40 yrs old you're at least 15% or the IRS maximum. At age 50 consider the extra catch-up. That really jolted by TSP balance and I'm only 56. I looked at your 10 year plan and went back the last 10 years. 7/18/2007 was a year before the great stock market crash of 2008-2009. In hindsight not a good time to be jumping in the market. However, had you went all in on the C, S & I funds the 10 year returns would be C=98%, S=111%, and I =14%. Past performance is no guarantee of future performance, but the C & S do better most other 10 year periods. To be a buy & hold investor though you have to stomach the huge losses and ride them out.

 

[GREENBAYPACKERS]

thanks for the info. 15% not including the match? so 20% overall is what you mean?