Reply to What is wrong with the TSP Lifecycle funds?

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[quote=Anonymous][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]

S isn’t small cap and hasn’t been for MANY YEARS.  Why do you people continue to post incorrect and inadequate information about the TSP?  If you can’t be bothered to keep up with a measly five funds and keep track of them for over a decade why do you post on them?

The S Fund is the Dow Jones US completion total.  It isn’t small cap stocks, it’s the ENTIRE STOCK MARKET minus the S&P 500 which are in the C fund.  The S Fund hasn’t been a small cap fund for a decade.[/quote]

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