By Mike Miles
July 24th, 2013 | Uncategorized
Q. All of my money is in the F fund and I’ve lost a few thousand dollars in the past couple of months. What fund transfer/allocations would you suggest to recover that money (quickly?) and what investment allocation would you recommend until I retire in eight years?
A. Losing money is not a reason to change your investment strategy. All strategies/allocations are subject to loss – that’s the price you pay for the prospect of growth. If 100 percent F Fund was the right asset allocation for your account a couple of months ago, what makes you think it isn’t the right allocation now? It’s impossible to determine the right asset allocation for you with the information you’ve provided. If investment management were that easy, it wouldn’t be such a pervasive problem for so many people.
David Chambers Says:
July 24th, 2013 at 4:09 pm
The TSP has a great resource for asset allocations. The L funds are for people who are in your situation, you may want to check it out.
Jerry Arzt Says:
July 26th, 2013 at 12:53 pm
Noone should have 100% of their money in anything. The safest investment, probably in the world, is the “G” fund, which never loses money. But it never earns much, either.