Zod Above Pugetropolis
11/06/17 4:36 pm
It’s good, but it’s not as good as it could be, unless you are close to retirement. Think more C and S funds, and less of anything else (and very little G-fund, which has been flat for years). The L-funds are very conservative, and even more so as you approach their target year. That's fine, especially if you don’t have a lot of other retirement income mapped out, or if you are very risk-averse, just realize that those funds don’t allow for much growth as you get closer to retirement. At the very minimum, if you are using one of those funds for a substantial part of your balance, pick them based on when you expect to need to start drawing them down, not when you plan to retire. For a comparison of the funds' performance, be sure to check out the summary of returns on the TSP site.
Squidboy Snarkapottamus
11/06/17 11:05 am
I’m not in a TSP....but that’s a pretty conservative return this year. Just about any index fund has provided a double digit return. Last time I looked, my IRAs (the bulk of my retirement assets) were up 14% ytd. In fact....the increase in my assets this year will outpace my earned income for the first time ever. And I have a hefty income.
Historically though....this is good. Over time, you can expect a 6-7% return on an equity based investment like that. I’ve had years that we’re far better 1999) and far worse (2008).
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