TSP investors
 

Ant TSP investors here? What strategy do you use? The plan allows two interfund allocations per month. Initially I'm looking at 20% in GFCSI. Then adjusting to try and time the market...Although, the idea of timing feels like a waste and easy way to lose money...Maybe I should just re-allocate to 40% bonds , 60%stocks twice a year and maximize my 17,500K per year opportunity...

Your thoughts?

Just starting tsp? Too young to be that much bonds. Dollar cost into the s c and I funds until your 40s at least.

tsp Roth
 

Also unless making good coin outside the military you should consider tsp Roth. Taxes will never be less than active duty military pay unless you retire to under a rock.

L Funds
 

Why not use the "L" funds - pick the one timed to when you need the money. At least that's what the $$ geek on federaltimes.com says.

I agree - chasing the market by moving %'s 2/mo is not going to help over the long haul - as you also alluded to.

Our financial adviser does our percentages (we were in the L). It's really a matter of your risk tolerance.

Thanks for the inputs...Have decided to go with the following to start:

C: 25%, S: 25%, I: 25%, G:20%, F: 10%

As for the amount per month...I can (after crunching some number) put $475 per pay period into TSP. That gives me some play / vacation money and will also allow me to put 5K into my Roth 401K.

My friend says to max out the TSP is possible...I can understand his reasoning...But, I really do like putting some cash away in a Roth IRA thru Vanguard (more options that TSP for investing)...I've got 63K currently in a Roth IRA (Vanguard Energy fund) and I like that fund quite a bit...

I plan to reallocate twice per year (April and August)...

Should I dial down the bonds a bit more? Say make it 20% for a few years?

L fund is the way to go. Choose one that matures around the year you need the money. As the years go by it becomes more conservative. The allocation is rebalanced at the end of each trading day. If stocks go up they need to be sold to rebalance the allocation and keep the percentages between investment types constant. If stocks go down they buy more to balance. Therefore you are buying low and selling high. Best part is it is automatic.

#1. Never take financial advice from a pilot. #2. Go with the TSP "L" funds unless you are smarter than the fund managers who do this stuff for a living EVERY DAY.

I gotta get in here with an opposing view (to L funds). Like someone said in an early post, you are too young to need the bond allocation you're planning. Dial them down as much as you can stand - I'd say max of 10% for now if you must have some at all. Go all S, C & I. No need to rebalance as often as you're planning to (IMHO), but great if it keeps you engaged and thinking about your allocations. L funds are too conservative a mix for too much of your life. But easy and brainless because someone else reallocates for you. Good luck! TSP started a bit too late in my career for me have much in it, but it's great that the military finally got it.

Yeah....I went all in on the TSP. C,S, and I funds only. I've got 220k in a Balanced fund (Vanguard Wellington) so that gives me plenty of bond exposure.