Reply to What is wrong with the TSP Lifecycle funds?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Two GS-14's, both 33. We like our jobs so plan to stay federal and work till at least 65. So, we're using the L2050.

Current allocation (April, 2019):
  11% G
  7% F
  40% C
  13% S
  29% I

What is wrong with this?[/quote]

That's actually not too bad. I would probably nix the bonds because you will have a govt pension and your time horizon is over 30 years.

Since small cap stocks outperform large cap stocks historically, upping the S fund makes sense.

I fund is much better because it now covers emerging markets. If you are pessimistic about the US, you might want to up the I fund. A lot of people get burned by thinking their country is #1.

Getting the bond allocation correct will probably have the biggest impact on your performance.[/quote]

Large cap (C fund) has outperformed small cap (S fund) historically. The international index that the I fund currently tracks has not done well historically and the I fund will be changing to follow a different international index soon. I plan to invest in the I fund at that time. Compare the current one to the total world index and you can see that the total world index seems better- the index fund that the I fund currently tracks has leveled out recently and is not increasing at a rate similar to the other indexes.[/quote]

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