Reply to Timing the market crash and my tsp

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I took one of those week-long retirement classes awhile back and the smartest advice I got came from the financial guy. He said never put anything in G or a Life Cycle fund. Put it 50:50 in C:S and ride out all storms. Even if you’re near or in retirement— it’s not like you’re going to suddenly liquidate and historically it always recovers and grows. I had $400 K in 2012 and have $2.4 M today, following his advice.[/quote]

That's crappy advice for too many reasons to list.[/quote]

Actually, it isn't for feds thanks to pension and SS/SS supplement. For many, you don't even have to touch TSP. I personally wouldn't do 50/50 between CS but I am also 100% in CS (similar balance as PP ~2.3)[/quote]

The question then becomes how much cash flow are you counting on from TSP. If you can meet all of your expenses from your pension then by all means take whatever risks you want with your TSP, but if you need $75 or $100k a year from TSP to support your lifestyle you probably want to manage the risks thst comes with a 100% stock portfolio and mix in some fixed income (especially the G fund which has the best risk adjusted return of any fixed income investment)

And the fact that this approach worked well over the incredible bull market of the last 10 years is not evidence it will always work (some people might suggest it’s actually less likely to work well over the next 10 years but who knows). [/quote]

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