TSP - L2050 fund or C & S funds?

[Anonymous]

I'm 39 and have had 100% of my TSP invested in the L2050 fund for most of my 13 years as a fed. The allocations of L2050 are 11% G, 8% F, 42% C, 12% S, and 29% I. That seems like a pretty high G fund allocation with 25 years to go. I have seen some recommendations on here to put it all the the C fund or in just C and S. I'm considering a switch to something like 85% C and 15% S to see how it goes. Good idea or how would you adjust?

[Anonymous]

you can try 70/30 or 65/35 but whatever you do, don't play with it every year. Keep it steady and play the long game. if you like L fund but want to be more aggressive, exchange to L2060 fund.

[Anonymous]

If you aren't certain, you could always keep your existing amount in the L fund, and change your future contributions to a C/S mix moving forward.

It might not be the most optimal option, but it is an option.

[Anonymous]

Anonymous wrote:you can try 70/30 or 65/35 but whatever you do, don't play with it every year. Keep it steady and play the long game. if you like L fund but want to be more aggressive, exchange to L2060 fund.

+1

Just switch to a more aggressive L fund. And there is a reason all L funds include international, so not sure why you would avoid.

[Anonymous]

I do 50/50 C/S. The other funds aren't really too useful.

[Anonymous]

I'm planning on retiring in 2042 at 60. I'm allocated like this: 9% F, 62% C, 19% S, 10% I.

[Anonymous]

I’m 38 and I had this same concern 5 years ago. Any money in G seems unwarranted given the pension - that’s the conservative part of my portfolio, so I can be more aggressive with everything in my TSP. My financial advisor recommended 50%C and 25% each in S and I. That recommendation alone earned me more than I paid in fees for the one time consultation.

[Anonymous]

Been in 100% C for the last ten years with no ragrets! Most years C beats S. Got about two decades to go so I'm not risk averse at this point. I agree no point doing G if you're getting a pension plus social security.

[Anonymous]

Anonymous wrote:

Anonymous wrote:you can try 70/30 or 65/35 but whatever you do, don't play with it every year. Keep it steady and play the long game. if you like L fund but want to be more aggressive, exchange to L2060 fund.

+1

Just switch to a more aggressive L fund. And there is a reason all L funds include international, so not sure why you would avoid.

Since you’re playing for the home team, might as well root for them too.

OP, you don’t need to ever think about G or F funds if you’re 5+ years away from retirement. All of the L funds carry way too much G and F for ballast, which is really just dragging down your returns in your prime earning years. 78%C & 22%S is essentially a perfect match to the entire U.S. stock market (aka VTI)…can’t go wrong if you plow it all into there over multiple decades.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:you can try 70/30 or 65/35 but whatever you do, don't play with it every year. Keep it steady and play the long game. if you like L fund but want to be more aggressive, exchange to L2060 fund.

+1

Just switch to a more aggressive L fund. And there is a reason all L funds include international, so not sure why you would avoid.

Since you’re playing for the home team, might as well root for them too.

OP, you don’t need to ever think about G or F funds if you’re 5+ years away from retirement. All of the L funds carry way too much G and F for ballast, which is really just dragging down your returns in your prime earning years. 78%C & 22%S is essentially a perfect match to the entire U.S. stock market (aka VTI)…can’t go wrong if you plow it all into there over multiple decades.

Actually it can go very wrong. The Japanese had the same narrow minded view and they've posted negative returns for 30 years. Sometimes there are good reasons to deviate from L Funds, but this isn't one of them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:you can try 70/30 or 65/35 but whatever you do, don't play with it every year. Keep it steady and play the long game. if you like L fund but want to be more aggressive, exchange to L2060 fund.

+1

Just switch to a more aggressive L fund. And there is a reason all L funds include international, so not sure why you would avoid.

Since you’re playing for the home team, might as well root for them too.

OP, you don’t need to ever think about G or F funds if you’re 5+ years away from retirement. All of the L funds carry way too much G and F for ballast, which is really just dragging down your returns in your prime earning years. 78%C & 22%S is essentially a perfect match to the entire U.S. stock market (aka VTI)…can’t go wrong if you plow it all into there over multiple decades.

Actually it can go very wrong. The Japanese had the same narrow minded view and they've posted negative returns for 30 years. Sometimes there are good reasons to deviate from L Funds, but this isn't one of them.

US isn’t Japan though and in that kind of downturns, no L fund will save you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:you can try 70/30 or 65/35 but whatever you do, don't play with it every year. Keep it steady and play the long game. if you like L fund but want to be more aggressive, exchange to L2060 fund.

+1

Just switch to a more aggressive L fund. And there is a reason all L funds include international, so not sure why you would avoid.

Since you’re playing for the home team, might as well root for them too.

OP, you don’t need to ever think about G or F funds if you’re 5+ years away from retirement. All of the L funds carry way too much G and F for ballast, which is really just dragging down your returns in your prime earning years. 78%C & 22%S is essentially a perfect match to the entire U.S. stock market (aka VTI)…can’t go wrong if you plow it all into there over multiple decades.

Actually it can go very wrong. The Japanese had the same narrow minded view and they've posted negative returns for 30 years. Sometimes there are good reasons to deviate from L Funds, but this isn't one of them.

Did every single person in Japan plow the last yen they’d ever come across into the Nikkei sometime in 1989? If they continued to diligently invest in their home country over the next 30+ years, their overall return would be positive. By sticking to solely the C & S TSP funds you get plenty of int’l exposure (AAPL, MSFT, GOOG, META, JNJ, etc.), while not having to put trust into weak economies/markets. Lastly, Japan≠USA