Newbi to TSP

[Junsau]

Please let me introduce myself, my name is...to the left. and i just started with working for the FEDS and last week I started adding money into my TSP fund. I have a few questions that need to be clarified.

1. I heard that the government will match the same amount as what i will contribute and the max is 5% is that true or false. if so what is the most that i can contribute so I can get the most with the government matching it?

2. I am in my mid twenties and i have four mutual funds that i started 6 years ago which all of the funds are domestic funds, but now with TSP i am putting 100% all into the I fund. is that a good sound well diversified portfolio?

I am accepting any good or bad critiques. thanks

Junsau

 

[rokid]

Welcome Junsau,

1. From the TSP site: Your Agency Automatic (1%) and Matching Contributions can add up to 5 percent of your basic pay. Therefore, if you contribute 5%, your agency will match it.

2. Whether or not you're diversified depends on the domestic funds you hold and the amounts in those funds. Typically, experts recommend that you hold 20-40% of your stock portfolio in international equities. However, unless you have a lot of money already invested in your four domestic funds, which may or may not be diversified domestically, you're probably over-weighting international.

Consider a 100% allocation to the L2045. It's designed to provide a sound, well diversified portfolio over a career - bonds, total domestic stock market, and developed international. In addition, it's risk profile will automatically change from risky early in your career to more conservative as you approach retirement.

Good luck!

 

[Gilligan]

Welcome Junsau,
Its good that you have decided to start early in your investing. Put in at least 5% into TSP to get all those matching funds.

Consider a 100% allocation to the L2045.

Good luck!

Rokid, did you mean the L2040?

 

[Show-me]

Welcome to our mad house. lol You have the advantage in the mid twenties.

1. True, your Uncle matches up to 5% of you income. My agency allows you to contribute by percentage or by dollar amount. I use percentage, so if you do just go for 5%. If not figure out 5% of you annual income and divide by the number of pay periods to get the dollar amount.

2. Your diversification looks fine and really is up to the individuals stomach for risk.

At you age the key to wealth is to MAX out you contributions. $15,500 is the IRS maximum. I know it sounds like a lot, but if you do this early, like right now, you will be very secure in your retirement.

Again welcome to the MB and ask away.

Please let me introduce myself, my name is...to the left. and i just started with working for the FEDS and last week I started adding money into my TSP fund. I have a few questions that need to be clarified.

1. I heard that the government will match the same amount as what i will contribute and the max is 5% is that true or false. if so what is the most that i can contribute so I can get the most with the government matching it?

2. I am in my mid twenties and i have four mutual funds that i started 6 years ago which all of the funds are domestic funds, but now with TSP i am putting 100% all into the I fund. is that a good sound well diversified portfolio?

I am accepting any good or bad critiques. thanks

Junsau

 

[nnuut]

Welcome to the Message Board Junsau. Best of luck with your career and your investments.
Norman