Recently, I have been getting a better account of my spending and investing (a low bar here) habits. I have had 51% of my TSP allocations going towards the G fund over the last six years. I've adjusted my future contributions to be distributed to stocks at a higher percentage since I am 20+ years away from using any of these funds.
However, since there is a dip in stock prices would moving the money I have sitting in the G fund to the C fund be a bad move? At least 80% of it.
Moving TSP Funds G to C
byu/Agitated-Bar6094 inMilitaryFinance
Posted by Agitated-Bar6094
3 Comments
Don’t time the market. Invest based on your risk portfolio based in the time you have left to retirement.
Unfortunately you missed a 77% gain over the last 5 years by being in the G fund. If you’re young, you should move it to the C fund. Expect lots and ups and downs over the years – just don’t touch it.
You sound like you might really benefit from a Lifecycle Fund instead of setting your own asset allocation. Lifecycle Funds are target date retirement funds based on when you turn 65. So if you turn 65 in 2055, buy the Lifecycle 2055.
They start heavy in stock funds (C, S, and I) and add more bonds and treasuries (F and G Funds) as you approach retirement age.
As your knowledge and confidence grows, you might set your own asset allocation, but if you’ve been 50% of your contributions to the G Fund the last six years… I think you might benefit from a professionally constructed portfolio.
Now is a great time to buy stock funds since they are recently on sale, but don’t chase performance or try to market time.
If you want to build your own asset allocation, have a read of The Simple Path to Wealth by JL Collins and The Little Book of Common Sense Investing by John Bogle.
Another good read is the Bogleheads wiki: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy
80% c fund 20% s fund.