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 Post Posted: Tue Apr 29, 2014 5:58 pm 
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Joined: Aug 06, 2012
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Location: Spokane, Wa
Flag: United States - Washington (47)
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Hey guys, your advice would be appreciated on this one.

My wife is a teacher in Washington State. They have 2 retirement plans: the first is a straight 2% x years of service plan, employer and member contribute a set amount.

The other one is what I'm interested in. She has asked me to figure out the best way to invest her retirement dollars if she chooses this second plan.

The plan works by using two components: a pension and a TSP-like program called DCP (Deferred Compensation Plan). Here's a link to the details: https://washington.gwrs.com/preLoginContentLink.do?accu=WashingtonWR&contentUrl=preLogin.about.publications&specificBundle=preLogin

The pension is 1% x years of service, employer pays all contributions to the pension on a defined scale. The DCP is funded solely by my wife's contributions, no employer match. Admin fees for the DCP are 0.129% annually.

The main funds are as follows (with their TSP equivilants and notes in parentheses):

- Savings Pool (G Fund, 0.91% for 2013)
- Washington State Bond Fund (F Fund, follows Barclay's Capital Intermediate Bond Index, 0.58% for 2013)
- Socially Responsible Balanced Fund (Mix of non-oil, non-mining, non-logging companies, lots of tech and green companies, 12.76% for 2013)
- US Large Cap Equity (C Fund, follows S&P, 21.89% for 2013)
- US Small Cap Value Equity (S Fund, follows Russel 2,000, 22.9% for 2013)
- Global Equity (I Fund, 50% US stocks, rest is Europe or Japan, follows MSCI ACWI Index, 17.63% for 2013)
- Emerging Market Equity (Mostly Asia and some Europe/S. America, follows MSCI Emerging Markets Index, -1.15% for 2013)

There are also a batch of "Retirement Strategy" funds that are run like the L-funds, and made up of the above individual funds.

Paycheck allocations: Once-a-year open season in January to change allocations. Allocation percentages range from 5 - 17%.

IFT timing: If made before 1PM Pacific Time, then effective COB that day. If after 1PM Pacific, then effective at COB next day. 1PM Pacific is the end of the trading day in New York.

IFT limits: Unlimited transfers if $1,000 or less. $1,000 or more then you must wait at least 30 days to move anything back into the fund that you pulled the money from - this includes the Savings Pool.

Given these limitations, I'm thinking that the one-move-a-month restriction with no Cash option reliably available really puts a damper the flexibility for this account. I'm thinking a seasonal strategy is in order because the ones I know of for the TSP use one move a month or less. What do you guys think?

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AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)

S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)

DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)

EFA (I Fund)
iShares MSCI EAFE Index (EFA)