Your Federal Retirement (investment advice needed)

[Piggy]

I just logged into my TSP account. For the past 6 years I've had 100% of my investments going into the G fund. I know absolutely nothing about investing money if it isn't obvious.

Anyway, today I took the $12K that I had invested and divided it up. I left 60% into the G fund, then placed 20% into the lifecycle 2040 and 20% into the 2030 fund.

With my future investments, I have 50% going into the G-fund and 50% into the lifecycle 2030 fund.

Does anyone think I'm going down the right or wrong path?

At least I didn't put 100% into buying GM stock.

[BarXone]

You could've went worse investing in Enron :eek:

[Group9]

Go see a professional FERS adviser. Your retirement is too important to take advice off of the internet. A good FERS adviser will help you understand the system so that YOU can wisely make the decisions yourself.

What's right for me, may not be right for you, and vice versa.

[Motorolanut]

I agree Yes, seek out a professional, Myself and others I know lost money BIG TIME in our TSP's Thank You GWB :mad:....And it does not look like the economy will get much better for serveral years. G funds are safe but low yield, but then again what the hell really yields any gain nowadays.
The G-fund is a safe bet at least until the economy recovers. But again, if you feel the need seek a professional investors opinion.

[Piggy]

Thanks all. I'm hoping the stock market bounces back.....who knows.

[Kimble]

Go see a professional FERS adviser. Your retirement is too important to take advice off of the internet. A good FERS adviser will help you understand the system so that YOU can wisely make the decisions yourself.

What's right for me, may not be right for you, and vice versa.

Group9's advice is the way to go. Check out Mason & Associates (click here), they only have services available in certain states, but OH is one. I plan to attend one of their seminars (it's 2 hours from 1800 - 2000), and these guys specialize in benefits and financial planning for federal employees under FERS. I have a coworker who gave me their info and swears by them (he told me, "I learned more in their 2 hour seminar about my benefits than I did in all my 6 years of working here"), so while I can't vouch for them personally, I've heard their financial planning towards TSP and other federal benefits is solid. I plan to attend their seminar in May, which better explains what services they provide and allows you to make an educated decision on whether you should use them.

[BP348]

I agree with everyone else go see an advisor.

That being said everyone has their own tolerance of risk. This is my own personal thinking but I think in most cases the "G" fund is a waste of time. Right now because of the way the economy it's not a bad choice but long term you might as well take that money and stick it in a savings account. You'll make the same amount (around 2% - 3%).

I have a higher tolerance for risk ( I’m greedy and don’t want to live off of rice & beans when I’m retired) and admit that I recently took a pretty good hit to my TSP but normally the lowest Fund I use is the "C" fund & the majority of my money goes into the "S" & "I" funds. But that's me I know a few guys who can't stand the thought of loosing any of their money so they're only comfortable with the "G" fund, to each their own.

If you can afford it I recommend investing the 15% allowed, or what ever the highest amount is you can afford & at least the 5% to get the matching funds.

The more you save now the more you'll have in your retirement. Remember the majority of your retirement is going to come from your TSP.

How much time do you have before you plan/have to retire? That makes a difference as well. Long term the Market has always made money.

I'm an aggressive investor so my way doesn’t fit a lot of people.

Go see that advisor.

[Nole795]

I have a higher tolerance for risk ( I’m greedy and don’t want to live off of rice & beans when I’m retired) and admit that I recently took a pretty good hit to my TSP but normally the lowest Fund I use is the "C" fund & the majority of my money goes into the "S" & "I" funds. But that's me I know a few guys who can't stand the thought of loosing any of their money so they're only comfortable with the "G" fund, to each their own.

Remember it is only a loss if you pull out. That money will come back. And like you I am also investing in high aggressive markets.

As I get closer to retirement i will start pulling money into the G fund, but that is a long long away.

[BP348]

Remember it is only a loss if you pull out. That money will come back. And like you I am also investing in high aggressive markets.

As I get closer to retirement i will start pulling money into the G fund, but that is a long long away.

+1

The way I see it I'm buying a lot of shares real cheap ;)

[Stub]

Does anyone think I'm going down the right or wrong path?

You are going down the right path because you are doing what most Americans do not do: plan for their retirement.

That being said, with current market conditions, at a minimum, I would have everything in L 2040 fund. If you do not plan to retire until 2040 or later, get out of the G fund! Some combination of C, S, and I is my suggestion.

I'm with BP348 and Nole795; be aggressive, stocks are cheap.

Every federal civilian should be contributing, at a minimum, 5% in order to benefit from government matching, aka... free money.

In my opinion, the next best investment for most, is a Roth IRA.