By Mike Miles
June 5th, 2013 | Uncategorized
Q. I have between 10 and 15 years to work until retirement (I am 52 yrs old). Right now, my contribution allocation is:
S: 25 percent
C: 25 percent
L: 20 percent
G: 30 percent
The distribution is more diversified. What do you think? I don’t know what I am doing; therefore, I am just guessing.
A. Your allocation is basically: 50 percent stocks, 20 percent bonds and 30 percent cash. This would generally be considered a moderately conservative allocation. Whether, or not, it’s right for you is impossible to say without more information and analysis, but it doesn’t appear to be grossly inefficient to me.
June 6th, 2013 at 9:00 am
You are leaving a tremendous amount of money on the table with that allocation in this economic environment. The F Fund portion of your L Fund will be negative for years to come as interest rates rise, and the G Fund will barely keep up with inflation. We are in the midst of a bull market and you should be 100% in stocks. Take a look at http://www.fedtrader.com and http://www.tspallocation.com to get some guidance.