Close to retirement

Sort by newest Sort by date
P

PAULK

First Allocation
Reaction score
0
imported post

I am getting within a few years of retirement,I am 61. I was wondering if I would do better to put everything in the G fund . I have a good mix now ,but lately it is so up and down that I just seem to break even,although the last week or so has been good for the stock funds and today has started great for the C fund. I would be gratefull for any thoughts on this .Paul
 
imported post

Depends on how much volatility (risk) you can take...

If you're within 10 years of retirement, I would guess that most financial planners would want you to be 50% in equities at the most - and perhaps less than that.
 
imported post

I plan on retiring in 2 years and my distribution= 45 C, 30 S and 25 I. Plan on something like this distribution after I retire. Maybe a little less in I and more in C after retirement.
 
imported post

Biggdog here. I'm in the same boat! I'll be retiring from the P.O. in 7 to 12 months ( I'm already elgible to go as of 07/04 ). I'm Civil Service so Ihave safe set retirement package. The TSP is extra so I'm gambling ( you have got to do better than all in the G-Fund ). You have to decide what is best for you, but these guys have sage advice so listen. Since I found TSPTALK in the middle of May/05 they have helped me make up my mind with my TSP and I thank them. Good Luck ! ! !
 
Last edited:
imported post

Like Mike said depends on how much risk you are willing to take. I think it was Spaf who used the - take your age and put that number in the low risk area, as a general rule.

I would say it also depends if your FERS or CSRS. If I was CSRS I would be willing to take a little more risk like Biggdog1 knowing that a large portion was in the agency retirement.

Good luck and happy retirement! Your almost there!:^
 
imported post

PAULK wrote:
I am getting within a few years of retirement,I am 61. I was wondering if I would do better to put everything in the G fund . I have a good mix now ,but lately it is so up and down that I just seem to break even,although the last week or so has been good for the stock funds and today has started great for the C fund. I would be gratefull for any thoughts on this .Paul
Click to expand...
Show-me was correct. 60/40 should be a good mix at age 61. However, since U want to retire in a few years and the market is very skiddish at present, and U are asking for any thoughts. My thought is that your investments are at too great a risk being in stocks, right now, take your profits and G fund them. However, if you are a risk taker/trader/bull, heck, it's our game!

PS 61 too! but I don't risk any funds that I can't afford to loose!

Have a good retirement [Priority #1] you deserve it!!!! :) Spaf
 
imported post

I would say that anytime you are 5 years or less away from retirement, you should start to get a little conservative. TSP is a program which works on time. The more time you have the more aggressive you can be. Saying that I feel that it is time for you become less aggressive. If it were me I would put 70% in G and 30% in C. You may want to consider looking around and maybe consulting with a professional, there might be something out there that is pretty secure and will give you a better return then the G Fund. I presently have 8 yrs left before mandatory retirement, currently I have 50% going into C, 25% into S and 25% into I. Occassionally, I do redistribute my old money so that no one fund is top heavy, I am trying to keep it well difersived. Well but the bottom line is you what are you confortable with and what is your risk tolerance. My Dad once told me when gambling, don't bet what you're not willing to lose. Take care and Good luck!

Rich
 
imported post

I agree with Rich.

You just can not take a hit right now.

Good stuff Rich. :^

May want to play seasonality.

Put an extra 5 -10% in the market around the end of Sep and bail after Xmas.

Has worked 11 years in a row for me.

:D
 
imported post

Paulk,

I can't stand no more - when you are in the C fund you are already diversified to the point of being exposed to 500 individual growth stocks. Richrob3 has an excellent program to accumulate and play the odds. There is very little volatility with the choices you are presented with in TSP - that is why they were picked. Therefore, if you have been in accumulate dollar cost averaging mode for many years you now have a very important asset - my friend you have cash. Now is not the time to shrink and go hide in the G fund. No sir, now is the time to try and double your funds over the next couple of years by using the leverage of your cash. Rule# 1: What's easy to do is almost always the wrong thing to do. And what's hard to do is almost always what makes you money.

When you retire you will have even more time to follow your investing style - that may be another 20 years - why shrink, have no fear. We are headed for higher highs on all the indexes over the next several years - you get a good piece of those gains by being 100% C and ride the bull. Continue to allocate your contributions to the same fund so you dollar cost average when there are backups. I'm a contrarian bull and that is exactly what I'm doing - when C fund gets to $15-$16 then begin to ease out in small increments as the price begins to become overvalued- and it will. From higher levels on the sp500 1600 to 1700 the volatility will increase and the corrections will be dreadful but provide opportunity to increase more shares. It only requires planning and patience. The sp500 is due to begin a period of outperformance going forward - currently the S fund is out in front but that will change - that fund will still appreciate but not as rapidly - the C fund will take over leadership and you should be in it up to your neck to make serious money.

This humble advice is applicable to anyone who has accumulated a nice cash position and they should make it work harder with the leverage that is available. That leverage is the ability to use 100% of your cash on one fund - that's why so many folks like to collect the penny - it adds up but only slowly. Catch the silver and help yourself now that you have cash. The contribution caps are also being lifted for 2006, you we be allowed to put in $15,000 plus a $5000 catch up if you want to exercise that benefit. That cash would really be helpful in a dollar cost averaging scenario. Remember, the hard thing to do is where you make money

If my chat makes you nervous - that is good because this is a serious program and it affects your like- but has the opportunity to improve your life also. Take care

Dennis - permabull #2
 
imported post

<<That cash would really be helpful...>>

Cash is always helpful! BT, you're making sense --but will the market cooperate?

Dave
 
imported post

Last six years he would be down 28%.

He can not risk that.

I understand you adore the C fund but the guy is a couple years away from retirement now.

I say again, when have stocks done well in a fed tightening cycle?

Last one was 1999-2000 - that turned out just swell.

:shock::shock::shock::shock::shock::shock::shock:
 
imported post

Ahhh.... what about taking some of that mone and invest it in real estate... Just my .02. However, I do understand real estate is not for everyone...

P
 
imported post

Greeting PAULK,

Another factor to add to this conversation is: Does your date to retire equal the same date you will start to need the money? In addittion, how much will you need. This is not the same for everybody. Given at least these two factors, your horizon of risk may be farther away than would seem obvious at the start. For example,I am eligible to retire at 55, can go until 57, and will not likely need to tap TSP until 62. So instead of only 9 years to go, I really have a horizon of 16 years.

You might also consider how much of your retirement will depend on TSP, and how much of your portfolio does TSP represent. In addition, if you are FERS, you also will have your basic benefit annuity, as well as whatever Social Security may be left.

Good luck,

SkyPilot
 
imported post

DMA,

Look at the end of the rate cycle in 1995- whew!

Look at the move in 1997 - Whew!

And of course all the way up for the rate cycle in 1999 through 2000. Another Whew!

Now every cycle is different with different economic variables to consider and worry over. This cycle is no different - I just think they will pause 6/29 and survey the economic landscape before making a decision to close up shop. If they decide to continue so will I, to me the bigger ris k is being out of the market not being in. Markets, especially bull markets can be very deceptive - I think many pilgrims will be left sitting in the shelter where they are located. They will be afraid of the wall of worry the comes with every good market move.

Don't listen to what the Fed fools say, watch what they do. They are delivering a decoy right now. You have to be preemptive to stay ahead of the curve - sorry to see you heading back to G fund so soon. I'm going to write in my account talk shortly why I specifically adore the C fund - that hasn't always been the case. Hope to see you at higher levels by the end of the week. Take care

Dennis - permabull #2
 
imported post

If this guy takes your advice he is going to be working into his 70s.
 
imported post

DMA,

Don't you think investing is work? I currently work harder at my investing than I do at my day job. Investing is going to be a great way to make my retirement more interesting and more prosperous. Maximize your potential all the way up to sp500 of 1700 - it would be a shame for anyone to miss this ride - but there is only so much room on the train.
 
imported post

Then please realize the growth stocks are in the S fund not the C fund.

The financial building blocks.

You posted a great thing in your thread that growth will outperform value.

Then you say that is why you are in the C fund. :shock:
 
imported post

DMA;

Let me see now: we have small cap value, small cap growth, large cap value, large cap growth, mid cap value, mid cap growth, Russell 3000 index, sp500 index, Russell 2000 index, Russell 1000 value index, Russell 1000 growth index, sp400 index, sp/barra 500 growth index, Russell 2500 growth index, Russell 3000 growth index, Russell mid cap growth index, Wilshire 5000 index, the point is there ain't none of them in the G fund amigo. Folks if you got cash - don't let the bears scare you into putting that cash in the "lockbox". Put it in the market - use your allocation contributions to even out any temporary mistakes you end up making- it will all wash out to the up side. I don't know when or how far we go, only that we are going as soon as the Fed play's its hand. Get in ahead of the crowd - be patient and stay in during the corrections. The old saying no pain no gain is true - the pain over the last 5 yeras has been substantial enough to shake every ones self-confidence - unless you been there done this pain thing before many times. Give me all the bad news there is out there, the Fed is listening. Dow 13,000 is coming. Go tell it on the mountain.

Dennis-permabull #2- out of control contrarian
 
You must log in or register to reply here.

Similar threads

Epic
The age 65 Medicare decision.
Replies
11
Views
362
FAAM
FAAM
James48843
Don’t get stuck with a tax bill in retirement:
Replies
1
Views
296
rangerray
rangerray
tsptalk
  • Article Article
Jobs report Friday and other issues
Replies
2
Views
319
nasa1974
nasa1974
James48843
OPM services online
Replies
9
Views
762
James48843
James48843
TommyIV
Top 4 AutoTracker Leaders Go All-In on the S-Fund
Replies
1
Views
183
nasa1974
nasa1974
Back
Top