Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Oh, and if you are using a target fund, just put everything in ONE fund. Don’t buy some 2030 and some 2040 for example and think that you are “diversifying.” I’m shocked by the people that think this is the case.

Well, I don’t think it’s diversifying but after I hit a certain target amount in the say, 2030 fund, I add to the 2040 and so on. I think of when I will need the funds. So I will use the 2050 funds in 2050, not when I retire years earlier.

Well there's a novel approach. Just make sure your 401(k) administrator will permit you to make withdrawals in that manner. For example, TSP withdrawals are distributed pro rata from all TSP core funds in which the participant's account is invested. You can't call them and say, "I'd like to withdraw $5,000 from my 2030 fund."

I honestly think you are over-thinking it. The fund managers are determining an asset allocation over time that assumes that some money will be needed sooner and some will be needed later. Otherwise, the 2025 fund wouldn't still be around 40% equities.

Ok, PP here. Is that true about TSP withdrawals? You can’t specify where withdrawals come from? I admit that I didn’t research this but I assumed it was like any brokerage account where I decide what to withdraw. Are other 401ks like that also?