Retired Friday 1/10 now questionning how to handle the fund

[Relevant]

I agree - stay conservative with your TSP at least until you've had time to adjust to your new life and begin to make plans for the future. I.E. business, travel, leisure.

After a year, maybe 2, you will be in a more stable state financially to see what you want to do with your TSP.

Enjoy your retirement. You earned it!

[FNG]

My goal is a least $600k at retirement & try to pick up at least 6% a year on top of that in gains. That way I can withdraw the 6% and keep the $600k in tack, pay thet taxes on $36k and add the remaining to my pension & offset money. Now, if I have a really good year, like 20%, take the 20% out, seperate 6% and leave the rest in a 1 year CD. This way if the follow year yields less then 6% or even a loss, you stil have a 14% CD sitting there to withdraw from. Now I think there may be a limit as to how much you can take out per year when you're less then 59 1/2 so take that into consideration too.

[Navig8tor]

Bill - Short story here that you can take or toss:

I have 1/3 of my retirement investments at a private, international "Wealth Management" firm. With them I have a ROTH IRA that is fully funded each year and a "taxable account" to which I funnel what's left of the 50% of my pay that I invest each month. 25% goes into the TSP to fully fund it each month, the remainder goes into the ROTH and taxable account with the other firm.

From the get-go I informed the other company that I would be fully funding my TSP account each year. Their reply, "We don't really like the TSP, don't know much about it."

Fact of the matter is they know NOTHING about it. When we have "yearly reviews" they don't ask about it. Meanwhile my TSP account holds nearly twice as much money while earning double-digit returns most years AND receiving bigger contributions. I honestly believe they don't want to talk about it because they know I blast THEIR returns and it doesn't cost me 1% of my account balance in yearly fees like their account does. That said, be weary of what investment firms tell you about the TSP; most know little to nothing about it.

As for your allocation, you may not want to buy-and-hold the S-fund fund long-term BECAUSE OF the volatility; however, sitting in the next-to-nothing earning G-fund isn't doing you any good either. You may sleep better at night knowing you're not losing anything but you can't MAKE ANYTHING if you're not in the market. You're basically sitting in an extremely poor earning money market account.

Personally, at 56 years of age I'd at least split an allocation across 60% stocks and 40% bonds. If not that then something like, 25G/50C/25S. Bond are sketchy now because of the fluctuating yields so be leery of the F.

You don't have to hide in the G-fund during periods in which you don't need to be hiding in the G-Fund. You still need to make your money work FOR YOU. If nothing else, drop it in the L-Income or L2020 and earn some returns...when the market is ripe for returning, that is. Hide in the G when it's not.

[billandkat]

Thanks folks, you have really been helpful. I need to get that 90% out of G and out working again. I like the 25g 50c and 25S. Now it's timing of the move. How do you guys decide when to move back out? Do you wait until the returns are down on the funds you're moving to?

[crondanet5]

Yes. I don't like that allocation. And I don't like buy and hold despite complacent's 2013 gain doing so. Investing in TSP is like playing cards on the Titanic. You gotta know when to fold 'em.

[billandkat]

Yes. I don't like that allocation. And I don't like buy and hold despite complacent's 2013 gain doing so. Investing in TSP is like playing cards on the Titanic. You gotta know when to fold 'em.

Okay, so I'm deciding I need to pull more from G and get it out. How do you time that?

[Relevant]

Yes. I don't like that allocation. And I don't like buy and hold despite complacent's 2013 gain doing so. Investing in TSP is like playing cards on the Titanic. You gotta know when to fold 'em.

Well said Crondanet5! Even the high risk players aren't adding to their positions right now and a lot of the players on this board are on the sidelines.

The market has been moving sideways for 2 weeks and dropped pretty hard over the past couple of hours. Everyone is waiting for signs of direction at this point.

[BaitBoy]

By mentally setting your retirement date as your retirement/investing horizon, you preclude yourself from achieving some of the gains you could be experiencing by setting your horizon a bit or a lot further out. While I can retire anytime, now, I am choosing to stay until I can take home a significant amount more in retirement than working.

Even if I retired at the end of this calendar year, I'm setting my investing horizon out to a minimum 15 years from now. I'll be 62 this May. By setting my investing horizon out in the distant future, I'm allowing my investments the opportunity, underscore 'opportunity,' to bring in significant additional capital. I'm allowing myself those additional 15 years for capital formation and accumulation. That horizon also gives me significant leeway to weather downturns. Buffet rule number 1 is 'never lose money.' If you don't cash in on the drops, you won't lose money. Every single time, every single time, the market has crashed it has resurged, and resurged to much higher levels than before it crashed, and in reasonable periods of time acceptable to me.

I, too, have male relatives that all died far too young. My paternal grandfather at 63, maternal g'father at 64, and father at 63. I have spent considerable amount of time at doctor appointments over the last few years doing everything possible to ensure a different outcome for myself. I take my prescriptions religiously. While I hope and pray that my preventive measures provide that different outcome, I'm not silly enough to think I can beat fate. Be that as it may, if I'm dead and gone, I won't be worrying about whether I got to spend it or not, and my wife is well taken care of, then the kids can fund their kids education, like an educational trust in perpetuity for future generations.

While I am here, you might even see me down at S. Padre, Boca Chica, or wherever you park. But, I'll also be actively investing as I find it rather fun to be actively involved. I pay an annual fee to get investing advice which is a far smarter way for me to spend my time to do what I like.

It all depends on your risk tolerance, what you want to do in your retirement, and whether you are content with the level of income you can derive out of your investments. If 90% in G at current rate of return provides you with satisfactory returns, then by all means carry on. Remember though, if you remove your funds from TSP and roll into a personal IRA, the G fund utilizes government bonds that are not available elsewhere - only to TSP members while in the plan.

Myself, 25 % C, 75% S. Shifting to significant amount in I if dollar value shifts or overseas climate improves. I plan to roll into an IRA at some point after retirement, if not immediately on retirement.

[aseamon]

You probably need to shop around for another advisor. Nice to leave the kids something, but live for yourself first. Invest wisely while protecting the majority, 60-80% low risk like G and F. C and S are moderate to high risk. Risk tolerance is key. Question to ask is...Are all your eggs in one basket?

[Navig8tor]

Yes. I don't like that allocation. And I don't like buy and hold despite complacent's 2013 gain doing so. Investing in TSP is like playing cards on the Titanic. You gotta know when to fold 'em.

Okay, so I'm deciding I need to pull more from G and get it out. How do you time that?

You don't like the 25G/55C/25S or the 90G/10S?

Either way, I didn't mean to infer he needed to get into that allocation RIGHT NOW? Although, the way this market is propped up it may turn out that today was a good day to buy the dip. Miss a good dip the past year or so and it has ended up costing you 2%-10%.

[billandkat]

You probably need to shop around for another advisor. Nice to leave the kids something, but live for yourself first. Invest wisely while protecting the majority, 60-80% low risk like G and F. C and S are moderate to high risk. Risk tolerance is key. Question to ask is...Are all your eggs in one basket?

No, all my eggs aren't in the government basket. I fully funded from day one. I wasn't smart about where the money was sitting for a long time, missed the big surges and got bit by the downturns. But I've also fully funded Roths and other investments through my local adviser. I also worked hard to pay off my primary home, all my vehicles and an investment building I'll be working out of in the coming years, using it as a workshop and a small antique store for my wife. If my numbers were right I'll be at about 40% on my pension and the social security offset. I won't need that much to offset the decrease in what shows up in the check. It has been hard just wrapping my mind around using TSP as the 3rd leg of my retirement stool. They kept telling us that at the various retirement seminars, but I have always saved and not spent. I don't understand waiting to pull money for fun until a person is in his/her 70's. Seems the older I get the less I will want or need?

[crondanet5]

NAV, let's see how that allocation plays out tomorrow.

[silentness]

NAV, let's see how that allocation plays out tomorrow.

Right now it's looking like another BTFD *facepalm*

I should of got out of F fund COB yesterday.

[TSPKip]

Silent: I note that over the prior three days, AGG [F fund] has had Higher highs and higher lows. There is a higher low today at present and should the market start to decline later today, the AGG may end again a higher high.

The momentum is declining, though.

[silentness]

I'm currently following that "Seasonal" strategy. The next move says S fund on January 23rd.

Little over a week away. I don't want to make the same mistake I made in December though. I went S fund early December and jumped back into the G fund because I got excited over a 1% gain. I missed the whole "Santa" rally