I'm doing 60%(C), 20%(S), 20%(I) at age 31. Is that ok?

[skunker]

Hey all,
I'm 31 and just allocated my funds as: 60% C, 20% S, and 20% I today. For the past 1.5 years, I had it set on the 2045 fund when I began my federal employment. Do you guys think this is a good allocation for my retirement goals? Can I just set this and leave it or might I as well go back to the 2050(L)? Currently I do 5% for TSP. I also contribute a couple hundred a year to a ROTH IRA, but not much because I'm pretty tight financially.


Thank you,

 

[Afishegg]

It doesn't matter what you allocate, as soon as Greece folds the gig is up and we all lose our financial dairy heirs. I believe we are at a turning point in human history, people are rising up all over the world and it seems to be starting here as well. If you want my personal opinion about the near term I would stay in F or G fund, way too much uncertainty out there. Stay fresh ......-Fish-

 

[xarmy87]

I started at the usps in 1988, didn't get into the tsp until 1994, didn't pay much attention to it until about 2000...what a FOOL i was! I am now 47 and took the early out in oct. of 2009. At that point i had 112,000 or so. Then i found TSPTALK.COM, and coupled with finding the CNBC channel on tv(or your puter),and the Google finance website (among others)...I have managed to live off of the interest that i make on my TSP every month for the last 19 month's. Made enough week before last to cover my TSP withdrawl's for the next 4 months. What i'm getting at is that there really is not a buy and hold way to achieve the early retirment you want( as well as may be offered to you, and sooner than you think). So learn the basics of the tsp funds, use the sites i listed ( especially Tom Crowley's daily info/market update's on tsptalk.com), but learn as fast as you can, don't religiously follow the sentiment survey system (or any other of the "system's" for that matter, not that they haven't or want perform) but since is it your money, i have found that is VERY beneficial to take good data from wherever you can get it and get a feel for how your gut react's to opinion's and cold facts & day2day event's to make the right(sometime's ) moves with YOUR tsp funds. You get 2 a month, 28cent's per thousand maintenance fee's, and a decent choice of fund's. I would recommend you stop putting money into the roth ira, MAXOUT!!!!! your tsp contributions. Do a few month's of basic homework studie( using the above referenced site's, or others you like)..And in a few month's you'll see that it was well worth the time it took you to get a feel for how our market's operate, and have historically operated, and trust me you will be so glad you did 15 year's from now. I wish i had payed as much attention to it at 31 as i did all of the cars, girls and other crap that are now long gone. and yes , a penney saved( from loss) is definitely a penny earned. . Good luck, learn, act, and persevere.

 

[Boghie]

Skunker,

The normal annual investment return on your 0/0/60/20/20 allocation is: 10% (7% inflation adjusted)
The normal risk is: 11%

Thus, in any single year you can expect your annual return to fall within a range of -1% to 21%.

That is a fairly risky allocation, but then again you are 31 years old. I like that allocation...

If you are not making enough bank to be in the 25% tax bracket I would move any extra money into the Roth. If you are one of the millionaired and billionaires making 50K a year (single) or so than look to put more in TSP. That is, if you're highest tax bracket is over 15% than pour money into TSP.

Finally, time in the market is more valuable than money in the market. Don't worry too much about your asset base since it probably isn't too high right now. For example, if you have $20K in your TSP account and you lose another 20% of value you will lose $4K. Lots of mony, but you will be buying shares that will make up the difference at a quick pace. Also, you lose nothing if you don't sell anything. Lastly, folks have been dooming and glooming for years. Don't worry about it.

 

[law87]

Hey all,
I'm 31 and just allocated my funds as: 60% C, 20% S, and 20% I today. For the past 1.5 years, I had it set on the 2045 fund when I began my federal employment. Do you guys think this is a good allocation for my retirement goals? Can I just set this and leave it or might I as well go back to the 2050(L)? Currently I do 5% for TSP. I also contribute a couple hundred a year to a ROTH IRA, but not much because I'm pretty tight financially.


Thank you,

not today it isnt

 

[Appatite]

It may be time to find a matress.

 

[ILoveTDs]

Skunker

I agree with XArmy. Do your reasearch and at the end of the day go with your gut, but buy and hold does not work.

 

[tsptalk]

Welcome to the new members! As you can tell by our slogan, 'friends don't let friends buy and hold', I am in the camp of keeping an eye on our money in an attempt to grab gains when possibile, and avoiding losses. easier said than done.

One day buy and hold might be back in vogue, but with the S&P currently sitting at 1200 - a level it first hit in 1998 - it hasn't been friendly to investors for the last 10-15 years. Timing was the only way to make decent money.

The important thing of course, is to keep contributing and get your matching contribution. Then, as xarmy kindly said, at least learn the basics of why markets go up and down, and in no time you will have a much better understanding of what to do with your money.

Good luck!

 

[dpmp]

I was a buy and hold until 2008, then I got wise after hanging out here.