TSP Allocation Strategies 2020 – The Best Out There

I’m sharing several TSP allocation strategies for 2020.

The strategies I talk about in this article below are:

  • S&P 500 Index Allocation
  • Total Stock Market Index Allocation
  • Warren Buffett TSP Allocation
  • Dave Ramsey TSP Allocation
  • Paul Merriman TSP Allocation
  • Total World Stock Market TSP Allocation
  • Balanced Index Fund Allocation
  • Three-fund Allocation
  • My Rich on Money Personal Portfolio Allocation

The Thrift Savings Plan is a defined contribution plan for United States civil service employees and retirees as well as for members of the uniformed services.

It is the rough equivalent of a 401k for military and civil service employees.

I’m not here to tell you which TSP investment strategy is best, that’s a fool’s errand.  Giving this type of TSP advice is impossible.

The only way to do that is to go into the future, see how things turn out, and then tell you which TSP allocation would have been ideal.

I will, however, give you the tools to make an informed decision about the best TSP strategy for you with some good food for thought.

Several of these TSP investment strategies are recommended by well-known money gurus such as Warren Buffett and Dave Ramsey.  The Dave Ramsey TSP allocation recommendation is a widely-searched google term.

I’ve added every TSP investment option I could find that will work with the available funds as well.


Below is a list of different potential TSP allocation strategies for this year you could use.  I’ve pulled these from various sources and as I discover new ones, I will update this.  Please send me your recommendations with supported documentation.

By the way, did you know the TSP recently drastically changed it’s withdrawal rules?  It’s now much easier to withdrawal money.

Make sure you maximize all your TSP benefits.  Click here for a free comprehensive E-guide that has everything you need to know about the TSP.

The S&P 500 Index

This is the asset allocation I used most of my working life.

When I opened a Roth IRA in 1999, I called my bank and asked to put it in the S&P 500.  At the urging of an investment advisor (I’m not a fan of most), I put it in an aggressive growth fund instead.  In 2000, it lost half its value.

From that day forward, I decided S&P 500 would be the way I invest.  I had read before that Warren Buffett said something to the effect of, if you don’t have time to look at stock charts and read finance news all day long, you are better off investing in the S&P 500 index and never touching it.

Actually, here’s exactly what he said in 2013 in his letter to shareholders:

“Most investors, of course, have not made the study of business prospects a priority in their lives. If wise, they will conclude that they do not know enough about specific businesses to predict their future earning power…I have good news for these non-professionals: The typical investor doesn’t need this skill…In the 20th Century, the Dow Jones Industrials index advanced from 66 to 11,497, paying a rising stream of dividends to boot. The 21st Century will witness further gains, almost certain to be substantial. The goal of the non-professional should not be to pick winners…but should rather be to own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal.”

Additionally, instead of investing his wife’s inheritance in Berkshire Hathaway stock, he plans to invest it in the S&P 500 index.

That should tell you something.

If it’s good enough for Warren, it’s good enough for me.

To mimic a full investment in the S&P 500 index, just invest 100% in the C fund.

The Total Stock Market Index

This investment choice is a popular one and is the main recommendation of JL Collins on his blog www.jlcollinsnh.com and in his book The Simple Path to Wealth.

Instead of just investing in the largest companies that make up the S&P 500, you invest in those plus mid and small cap companies as well.  This index encompasses the entire U.S. stock market (as the name suggests!)

Financial Independence Retire Early (FIRE) enthusiasts will swear to the superiority of this index to the S&P 500, and suggesting considering anything else is heresy!

It’s clearly more diversified than the S&P 500, and small caps have been known to outperform large caps over the long term, albeit with potentially a little more volatility.

Over long periods of time, the total stock market index fund and S&P 500 had similar performance, and it would be hard to say for sure which will outperform in the future.

In my opinion, you are doing great with either one.

80% C and 20% S will closely mimic this popular index.

The Warren Buffett TSP Allocation

image from moneycrashers.com

While I mentioned earlier I got my idea for an all S&P 500 index allocation from something Warren Buffett said in a newsletter, he actually has more specific instructions I want to address here.

I talked earlier about how he had a plan for how the money left for his wife would be invested.  I said he would invest in S&P 500 index instead of Berkshire Hathaway, but that’s only part of the story.

He also has a plan to throw bonds into the mix to smooth out the ride a little bit, which is a common investment strategy.  The amount of bonds you throw into the mix will dampen the volatility, but will also limit your upside potential during booms as well.

In the same newsletter in 2013, he talked about his specific advice to his trustee on how to invest the remaining money that will be left to his family:

“My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund…I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers.”

As luck would have it, this is easy to mimic with the funds offered in the thrift savings plan.  90% C fund and 10% F fund.

Thanks Warren!

Dave Ramsey TSP Investment Advice

dave ramsey tsp allocation

I’m a huge fan of Dave’s book Total Money Makeover.  His baby steps for getting out of debt are legendary!

He also has TSP investment recommendations on how to invest in the thrift savings plan.  His caveats are typical of Dave’s approach to money.

In typical Dave fashion, he suggests that you first pay off all your debt besides your primary residence before you begin long term investing and have an emergency fund of three to six months of expenses as well.

He has two sets of recommendations.  One slightly more aggressive than the other.

More conservative:  80% in C, 10% in S, 10% in I.

Less conservative:  60% in C, 20% in S, 20% in I.

Here is the link to his recommendation.


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Paul Merriman TSP Allocation Recommendations

Paul Merriman is a successful advisor on mutual fund and index fund investing.  He’s an accomplished author, speaker, and is well known for then ultimate buy-and-hold portfolio.

This portfolio is comprised of index funds and has an amazing track record.  Unfortunately, due to the various types of funds held in this portfolio, it is impossible to mimic with the TSP funds available.

If you are curious, I wrote an article about this how to invest in this portfolio:

9 Proven Ways to Boost Your Index Fund Returns

He explains that most notably what is missing from the TSP funds is value funds, which is a key component of his strategy to boost typical index fund returns.

He does make specific recommendations for TSP owners using what is available to us.

He has 3 separate recommendations based on your risk tolerance, conservative, moderate and aggressive.

With all three of these portfolios, the equity part of the portfolio is split the same way:

50% in S, 25% in C, 25% in I.

With the aggressive portfolio, the entire amount is invested this way.  The conservative and moderate portfolios have a portion of the total invested in the F and G funds.  This portion is not exposed to the risk of the stock market, as the C, S and I funds are.

His advice is that, generally, younger investors can afford to be more aggressive, and as you get older, you become more conservative, but this is a generalization and everybody’s situation may differ.

The conservative portfolio is 18% G and 42% F, and the rest in S, C and I at 50/25/25.

The moderate portfolio is 12% G and  28% F, and the rest in S, C and I at 50/25/25.

Attached is a graphic from his website outlining exactly how to do this strategy.

TSP investment strategies
From www.paulmerriman.com/tsp/

Here is the link to his article on TSP recommendations:

How to pick smarter investments in your U.S. Thrift Savings Plans

Make sure you use these allocation strategies to make the most money in your TSP.

Here’s how…

Total World Stock Market Portfolio

This portfolio mix is a tsp investment strategy modeled loosely after the Vanguard Total World Stock Index Fund (VTWSX).

It will allow you to have exposure to stock markets around the globe, including the United States and developed foreign markets.

The weakness of this portfolio compared to the Vanguard one is exposure to emerging markets.  The I fund currently only has developed economies, and not emerging markets.  There supposedly is a plan in place to change the I fund in the future to include emerging markets, but it hasn’t happened yet.

The Vanguard fund I am modeling after has roughly 60% of the portfolio in U.S. stocks, and the rest are international.  To model this portfolio, use 48% C and 12% S to make up the U.S. stock market, then use 40% I for the rest.

The 48/12 mix comes from splitting 60% into an 80/20 mix to achieve the Total Stock Market Index.

Balanced Index Fund Portfolio

This portfolio is meant to mimic the Vanguard Balanced Index Fund Admiral Shares (VBIAX).

It is a way to have access to the entire U.S. stock and bond market.  It has far less volatility than the Total Stock Market Index by using bonds to smooth out the ride.  The balance of this portfolio is 60% stocks, and 40% bonds.

This can be accomplished through 48% C, 12% S, and 40% F.

Obviously, you could adjust the stock/bond ratio to meet any level of risk that you would like.

Three Fund Portfolio

This is a favorite among Bogleheads (Those who love Vanguard and its founder Jack Bogle).

This fund is comprised of 1/3 each of the following:

Vanguard Total Stock Market Fund

Vanguard Total International Stock Market Fund

Vanguard Total Bond Market Fund

This fund is broadly diversified, but heavily weighted in large cap stocks.  Remember, the I fund lacks the exposure to emerging markets that the Total International Stock Market Fund has, so the thrift savings plan version won’t be identical until the I includes more countries and emerging markets.

To mimic the Total Stock Market fund, I split the 33% in an 80/20 C/S split.  This is where I get my weird percentages from.

A way to closely mimic this portfolio is: 27% C, 7% S, 33% I, 33% F.

My Current TSP Allocation for 2020

There are literally thousands of people who google “Rich on Money TSP Allocation” every millennium.

Until now, nobody has ever known how the brilliant mind of a master invests.

I like the idea of being a little heavier weighted on the mid-cap stocks as opposed to being just all S&P 500.  Of course, I’m going against Warren Buffett’s philosophy.

Not sure how wise that is!

I used to have international sprinkled in there at 10%, but I gave up on it.  There is enough international exposure between C and S IMHO.

Here it comes…

The Rich on Money worldwide dominance TSP portfolio

50% S / 50% C

Best TSP Fund for 2020

The question “what is the best TSP fund for 2020?” or “what is the best TSP fund?” gets asked all the time.

It’s a fundamentally flawed question.

If you are asking which TSP fund is best, you may think that jumping between funds at the right times depending on cycles, economic data, politics, etc. will yield you superior returns.

You may also believe that experts scouring the market for data and gifted chart readers have some way of knowing which funds should outperform in the near future.

I’m here to tell you, people with those abilities do not exist.

There are many that make a fortune on Wall Street writing blogs, and doing news segments claiming this unique gift.  When they are right, they get huge kudos and bonuses.

When they are wrong, they explain why the market didn’t do what they thought, and make a new prediction.  Eventually, they stop getting away with this and fall out of favor.

Their successful predictions, IMHO, are largely attributable to luck.  Just because they were right this time, doesn’t mean they’ll be right next.

This concept is difficult to explain in a few paragraphs.  If what I’m saying makes a little sense to you and you’d like to know more, read the following article:

There is no best TSP fund in 2020 or any other year.  There are good TSP allocation strategies that should work if you follow them consistently over a long period of time (that means decades).

That’s what I gave you in this article.

Changing strategies or funds often is a recipe for low returns.

Most of these TSP allocation strategies should work well if you regularly contribute to your thrift savings plan, ensure you are getting matching if it’s offered, and stick with the same TSP investing strategy over the long term.

I would caution against jumping back and forth between TSP investing strategies every time you find something bright and shiny.  Many people erode their long term returns by “dancing in and out of the market.” (Warren Buffett)

To understand all this TSP advice, it helps to know the five core funds inside the TSP and what they consist of.  This is important in understanding how they are used in building TSP investing portfolios.


  • The G fund contains short term U.S. Treasury securities with no exposure to the risk of the bond or stock market

  • The F fund is an index of world-wide government, corporate, and mortgage-backed bonds

  • The C fund is equivalent to the S&P 500 index.

  • The S fund is an index of mid and small-cap stocks not included in the S&P 500.

  • The I fund mimics the MSCI EAFE Index of international stocks in 21 developed markets excluding the United States and Canada.

  • The L funds are professionally managed investment funds tailored to a specific time horizon.

from opm.gov

Now we dive into each one a little more in depth before going into our TSP investment strategies:

The G Fund – The Government Security Investment Fund

Pros: No volatility and backed by full faith and credit of the U.S. government

Cons:  Can barely match the inflation rate; rate based on prevailing interest rate, which is currently low

This unique investment is only available for TSP investing.  It’s rate is equal to 10-year treasuries, but their liquidity and protection from interest rate fluctuations is superior to 3-month T-bills.

The interest rate resets monthly and is based on the average of U.S. treasuries with a duration of 4 year or more.

The F Fund – The Fixed Income Investment Fund

Pros:  Low volatility; historically outperforms G fund

Cons:  Currently has low returns as based on prevailing interest rate; loses value if interest rates rise sharply

This fund follows the Bloomberg Barclays U.S. Aggregate Bond Index, which invests in government and corporate bonds as well as mortgage-backed securities.  That means this fund holds some U.S. treasuries, which means it has some overlap with the G fund.

The returns on this fund are historically slightly higher and slightly more volatile than the G fund.

The F fund tends to be superior when interest rates are flat or falling.  If interest rates are rising, it is safer to have money in the G fund.

The C Fund – The Common Stock Index Investment Fund

Pros:  Historically has returned around 7-9% over the long term, depending on who you ask, and how you calculate.

Cons:  Can have decade long periods without gains; falls with crashes and bubbles

This fund follows the S&P 500 index, which is an index of the 500 largest and most profitable U.S. corporations.

Even though there are 500 companies in the index, the top 10 companies, which consist of big names like Apple, Google, Microsoft, and Amazon, make up 20% of the value of the fund.

The S Fund – The Small Capitalization Stock Index Investment Fund

Pros:  Similar returns to the C fund, but with more diversification

Cons:  Can have decade long periods without gains; falls with crashes and bubbles

This fund has mid and small-cap stocks, making up the rest of the stocks in the market other than what is in the S&P 500 index.  This fund seeks to match the performance of the Dow Jones U.S. Completion Total Stock Market Index.  It consists of about 3300 stocks.

The I Fund – The International Stock Index Investment Fund

Pros:  Allows for international equities to be purchased

Cons:  Only invested in developed countries, so lacks exposure to entire international market and emerging markets

This fund mimics the MSCI EAFE (Europe, Australasia, and Far East) Index, a collection of over 900 large and medium sized corporations.  Most of these companies are in Western Europe and Japan.

Keep in mind, this fund is concentrated primarily in Japan, Germany, Switzerland, France, and the UK.  Japan makes up more than 25% of the portfolio.  It is not the same as some international funds out there that have a sampling of small companies from countries all over the world.

This is actually an important consideration when equating this I fund with some of the TSP investment strategies I have listed later in this post.

When strategies call for an international index fund, they probably mean one with exposure to emerging countries and smaller companies as well as the ones listed in the MSCI EAFE.  There are different flavors of international index funds, and this I fund doesn’t quite capture the most diverse of them.

Keep that in mind when using the I fund as a substitute for international index funds in a prescribed strategy.

The L funds – Lifecycle Funds

Pros:  Asset allocation and rebalancing is done for you by BlackRock, which is one of the most respected investment firms in the world with $6.3 trillion under management.

Cons:  You have no control over your asset allocation; some say the fund is conservative

The L funds, which stands for Lifecycle funds, use professionally determined investment mixes.  You choose the L fund that matches the timeframe you plan you start needing the money in your TSP.

Currently, the L funds offered are L2020, L2030, L2040, and L2050.  If you were to choose the L2040 fund, this fund would be optimized for beginning withdrawals in the year 2040.

Using the 2040 L fund as an example, if you were to invest in it in January of 2019, it would have the following allocation:

TSP allocation
from TSP.gov

As you can see, roughly 28% is invested in the G an F funds, which are essentially treasuries and bonds.  The rest is divided up between the C, S, and I funds, which are invested in the stock market and more volatile.

This is BlackRock’s recommendation for an appropriate balance between stocks and bonds to mitigate the volatility of the portfolio.  When the stock market crashes by 40% in a month, this portfolio would go down less due to being invested 29% in treasuries and bonds.

The converse, however, is also true.  If the stock market goes up 40% in 2 months, this portfolio will go up less than that, because of the investment in less risky treasuries and bonds.

The funds allocation is adjusted quarterly to slowly move towards a much more conservative portfolio by 2040 that will at that point turn into the L Income fund which has the following asset allocation that does not change:

TSP allocation strategies
from TSP.gov

Ignore the date October 2018 on this graphic.  This will be the asset allocation in 2040 for the L 2040 fund once it matures and becomes the L income fund.

So essentially what happens with L funds is they move from being more risky to more conservative over time, ending with the L income fund, which is how the investment stays while you are actually withdrawing from it in your older years.

It the case of the L 2040 fund, it moves from the allocation in the first graphic above to the second. Quarterly reallocating the investment gradually from roughly 28% to 80% invested in treasuries and bonds.

There you have it.

If you have a recommendation for additional TSP investment options or TSP strategies, comment or email them in.

I’ll keep this updated.

If you want far more in-depth info on TSP, including the all the new changes regarding withdrawals (TSP Modernization Act), go to my TSP Page, it’s a 7500-word article on the subject.

Inspiration for this post came from one of my favorite posts of all time, the White Coat Investor’s compilation of 150 Portfolios Better than Yours.

Hey, I left mine!

Leave your TSP allocation and reasoning in the comments.

Rich on Money

31 thoughts on “TSP Allocation Strategies 2020 – The Best Out There”

  1. Hi Rich, Happy New Year-

    The TSP wasn’t offered when I was a young enlisted soldier, and I don’t know if I would have seen the wisdom of socking money away for ‘retirement’ at that age (?).

    I did manage to save-off $500/mo that went into a savings account (‘..back home..’), and I was always impressed with how well that pile of cash grew.

    I never missed the money – as it came off the top so quickly – I didn’t have time to do so! I also didn’t spend any of the money, as it was direct deposited and then “directly transferred” into said savings account.

    Not to mention that my bank was approximately 9,300 mi from my duty station…

    Thank you for the post, as I enjoyed reading about the TSP and seeing that Uncle Sam is offering an opportunity for his children to grow their wealth: Hoo-Yah!

    I’d be interested to hear what your thoughts are about the education-piece (at the soldier-level) that Uncle offers?

    I recall many of my peers having a lack of financial acumen and that it was (often) difficult to explain the most-basic-of-concepts (ie; income v outflow, direct deposit, use of a checkbook, contributing to the GI Bill, etc). This wasn’t necessarily their fault, as many of these young people had little / no ‘financial education’ or were only accustomed to the modeling of poor financial habits by their family and / or peers.

    I certainly hope that investing-education is offered and encouraged among the rank and file (?).

    As you noted, I’d also give a shout-out to your readers about ‘The Simple Path to Wealth’. I found the book to be one of the best on the topic of saving for one’s retirement, and written in such a way that it was easy to understand without being preachy or overly simplistic.

    I hope the New Year is treating you well, Rich, and I look forward to many more engaging posts from your blog!

    Cheers ~ Todd

    • Of course the education piece is important, albeit not a large focus subject on my blog.

      I have done the paperwork to transfer to the post 911 gi bill and set it up so my children can use it when I retire.

      I’m not sure if you’re familiar with Doug Nordman and the-military-guide, but it’s got some great articles for helping military members and vets.

      Here’s one about the G.I. Bill.


  2. Rich,
    I am a young sailor trying to get this TSP thing right. Im proud that i was smart enough as an 18 y/o boot to contribute to TSP and get my money out of the G fund and into L2050. I titrated my monthly contributions to 30% base pay by the time I was 8 months in. 6 years later I’m relatively happy where I’m at, but have gotten more and more mindful of whats actually happening with my money.

    At this point I’m a little scared to leave the comfort of having someone else manage my investments but also dont see why i wouldnt align my accounts to reflect the views of someone like Warren Buffet. I just made the move to transfer current and future funds as follows

    I’ll be honest, it was a bit of an impulse move. For some reason though, keeping some of the money with L fund just made me feel comfortable that someones adjusting for the market. Do you see anything terribly wrong with this thought?
    Thanks in advance,

    • If I knew the future, I’d tell you exactly how to invest. I don’t know.
      I don’t see anything terribly wrong with what you are doing. Good luck. It sounds like you’re doing well.

  3. great post! It’s really helpful to think about TSP the way you have broken down. It was really helpful to read your post with post from Lyn Alden’s TSP: The Ultimate Guide for 2019. I’m definitely deciding between few of the strategies you have listed.

    But one caveat is something I learned from Lyn Alden’s post on I fund which I didn’t look carefully at. You do address this about the I fund, but I believe some of your strategies seems to equate total international stock fund with I fund, which is probably inaccurate? What do you think?

  4. Thanks for the straight-forward and fact-based article on TSP funds.
    I’m a long-time federal employee. My payroll contributions are allocated as follows: 60%/10%/30% to the C, F, and G funds, respectively.
    The current value of my account is 75% in C, 7% in I, and 18% in G. Mostly out of neglect, it seems to have performed well over the long term, but I’ve been meaning to update my allocation to be more conservative 😉 So your article will be a great resource for that. Thanks again.
    Mostly out of neglect, my fund has done well.

    • I appreciate the comment. That’s good information. I’d like to encourage others to share what they are doing so people can compare and make their own informed decisions or tweaks.

  5. Suggest how to invest when you have less service years and was using 2040, but really 2020 should have been used 10 years ago, what strategies to increase value, and balance volatility.

    • I’m not exactly sure what you mean, but I’d recommend coming up with your own strategy based on the myriad of options available. I like the ones I suggested, but there are probably more out there. I’m not necessarily a fan of the L funds myself, but some like that automatic balancing.

  6. Rich,

    This is an awesome synopsis of the funds and how to mimic some of the Vanguard funds people love in the FIRE community at large. I remember reading this a while back and actually restructured my whole TSP Asset allocation strategy based on it.

    Many thanks for the awesome work you are doing on the military front!

  7. Rich

    I been retired for 10 years from U.S.P.S. M.. .y TSP retirement funds have been sitting in the G fund. I”m so confused reading so many articles. I’m finally going to make changes . 30% in C / 60%in S / 10%in I fund what do you think ?

    • Sandra,

      This stuff can be very confusing.

      If you have been retired for awhile, then you will likely have access to this money soon, once you turn 59 1/2.  You also may need to start withdrawing this money soon, if you aren’t already.

      The allocation your suggesting is very volatile, and if the market drops quickly, this allocation will drop quickly too.  If you are already long retired, you probably shouldn’t invest as aggressively as you are suggesting.  Having money in the g funds means you won’t make hardly any money when the market goes up, but at the same time, you won’t lose money when the market drops.  This makes more sense when you are older.  

      You just have to decide how much of your money you want invested in funds that will go up and down a lot (C, S, I), and how much you want in safer funds (G and F).  You could blend the safe ones with the volatile ones.

      I recommend talking to a professional to make that decision if this stuff is still confusing to you. 

  8. Hello Rich,
    I am a Federal employee with the U.S. Postal Service and I plan to retire at the end of 2021.
    My current age is 67 and I have been with the postal service since 1985 and I did buy back my time when I was in the Military to increase my service time when it comes to calculate my pension. My current investments in the TSP are as follows;
    30% each in the G, C, and S fund and 10% in the I fund.
    I would like to know if this is a good mix for me at this stage of my life or do you have a better investment mix while I have another 2 years to work and also what would you recommend what percentages to invest in the funds AFTER I retire at the end of 2021?
    Thank you Rich.

    • David,

      This is tough to answer quickly in an email. It depends on your personal situation. I will say at your age, if you are planning on withdrawing the money soon (you probably are), you should consider shifting a lot more money away from C, S, and I towards safer investments like G or F. A large drop in the market now or just as you retire would be devastating to you, so you need to consider that. I’m not a licensed professional and cannot give out that type of advice. Additionally, I don’t know enough about your personal situation to give you a tailored recommendation. Talk to a fee only financial advisor. Get recommendations.

      • Hi Rich,
        I recently made a change in my TSP allocations as you had considered me to do and moved all of the amounts that I had in the C,S and I fund into the G fund in case the market takes a nose dive before I retire in 2021. Moving forward, I am putting 70% into the G fund and 15% each into the C and S fund as I would like to get some growth for the next two years while I am still working and after I leave the postal service I will change that probably to 90% in G and 5% each in C and S.
        I was told by other financial advisors that one should always invest a small percentage into the stock market after retirement to continue growth but not to the point of losing sleep over a loss when the market drops.
        I think 10% is a small risk that I feel comfortable to invest.
        Thank you once again Rich.

  9. Hello Rich, what a great article! I’ve been a federal employee for 6 years, 14 more to go. I started in the L40 fund but have started branching out. I’m now 30% C, 30% S, 40% L40. I think I could do better than that. Any suggestions? I know you aren’t a professional financial adviser, but I’d like your thoughts!

    • I think the lifestyle are meant to be a balance of riskier (C, S) vs fixed income (G,F) that is appropriate for your risk tolerance. I’d either pick the lifecycle that has a risk tolerance that is appropriate for you, or build your own. I wouldn’t do both.

  10. Rich
    Could you explain the difference between contribution allocation and intrafund transfer. Is it necessary to set these two at the same percentages when making changes or what would be the reasons for changing one and not the other?

    • contribution allocation tells you how to allocate the money that comes in each month from your paycheck between funds. Intrafund transfer is how you move the money that is already invested and allocate it to different funds in a different percentage.

  11. Rich, great information. I am a 52 year old Fed with 30 years in.I have been invested 50-50 in C & S fund since the S fund was established.. I was 100 C prior to that. I am more than pleased with the performance. My question is do you think the time may be right to throw 25% into the I fund? Seems like there may be more upside at this time. I plan on staying 100% in stocks regardless. Thanks in advance.

    • I don’t want to make that decision for you. If you read my writing about the I fund, it has it’s issues. It doesn’t invest in smaller countries, only well established ones. I can tell you I’m not planning on investing in the I fund myself. I can’t tell the future, though. I like C and S for the long term.


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