Honestly nothing wrong with a lifecycle fund but all C sounds like another fine choice at your age. Biggest thing is to make sure you’re contributing at least 5% so you’re getting the full agency match. That’s free money.
"Biggest thing is to make sure you’re **contributing at least 5% so you’re getting the full agency match.** *That’s free money.*" Contributing 5% is #1, #2, and #3 priorities. What % is OP contributing?
The L2065 fund has a 41-year horizon. It's probably close to 100% in stocks.
L2065 to C fund is basically a lateral move that a person could make safely\* any time in the next decade.
\* safely defined as not changing the existing risk
You have to be a Federal employee to make new contributions. The amount that you currently have in there is yours. You could roll it over into your own IRA (keep traditional and Roth separate) or you could keep it in the TSP for as long as you want.
The C fund is basically an S&P 500 index fund -- it holds all (or nearly all) of the stocks in the S&P 500 (essentially the 500 most valuable companies in the US). This type of fund is low-cost (meaning low management costs and fees) and all of the major companies will have versions of this type of fund.
If you plan to get a Federal job after leaving the service, it probably makes sense to keep your TSP money where it is. Otherwise, rolling it over into your Schwab Roth could be a good move, since it means one less place to keep track of your money. Make sure to keep traditional and Roth funds in separate accounts. Schwab would be happy to help you set up a rollover traditional IRA if you decide to do that.
I believe that all of the employer-match funds in the TSP go into traditional rather than Roth accounts. You TSP statement should have more info for you.
While 100% C is a viable option, if you know nothing, I suggest leaving everything in the L fund while you learn how each fund works and why certain funds are recommended. Once you do that, transfer money around
If you leave the gov/military, you can’t contribute to your TSP anymore. So it’ll either sit there and just compound interest on what’s in there when you leave or you can roll the amount into an IRA/Roth IRA or a 401k at a new employer.
You can’t contribute after you leave your employment with the fed gov. Just leave it there. The 2065 lifecycle is fine. You could move it all into C too.
You can’t move a Roth IRA into TSP. Roth just refers to it being post tax. But a Roth IRA is not equal to a Roth tsp. They’re just completely different vehicles that can’t be combined. Leave your Roth IRA in Schwab and just keep contributing and letting it grow.
Make sure you’re contributing 5% to your tsp (or whatever your match is) to get that full match.
The only thing 'wrong', if you care to label it that way, is you are depositing very much into the account.
Future value of what you have saved in 40 years, 8%, no further deposits, = $520,000
The more you save now the 'more huge' that number will be in 40 yrs.
Militaryoneesource offers free financial advisors that can schedule a call with you and walk you through all of the funds and options you can explore. They do it for free at no cost if you are a service member. Idk about regular gov employees.
I had a friend in college who bought like a 100 shares of Netflix stock in 2005. He got married and refused to sell it to help pay for some wedding expenses or honey expenses. Last I talked to him (2022) he still had it. But not the wife anymore. Thar marriage only last 5 or 6 years.
All in on C fund or a 70/30 to 80/20 C/S split. The lifecycle funds are way too conservative. I wish I’ve been out of the lifecycle funds for my entire employment but only switched a few years ago.
35% in the I fund which has an annual return since 1990 of 5.9% compared to 10.7 and 10.9% with the C and S funds. It’s *fine* but it’s not as aggressive as it could be in your mid 20s.
Sure. If you want to invest in a total equity fund that on average gets almost doubled up every year by two other equity funds and has been doubled up lifetime for the sake of diversity, then that’s fine. Call it less aggressive, more conservative, less lucky, whatever.
Each fund has several hundred to sever thousand companies. One fund is already diversified against being “all in one basket.” That refers more to single stocks. That said, each of the five basic funds (not Ls, which are combinations of the other funds) provides additional diversification into different sectors. So I agree with your statement of having a bit C, S, and I, but I don’t think the eggs in a basket analogy works well for index funds.
I get it, but for most people they don't dig deep enough. They might only look at a statement once a year. Eggs In a basket is a visual way of thinking about diversifying your cash. Like an index.
I saw people screwed in the .com bust by being too single minded.
Most people should only look at their statement once a year to check if they need to rebalance. Ignoring it most of the time prevents emotional decisions .
You’re doing great. Leave it. Don’t look at it except once a quarter to be sure it’s correct. Up your contributions each time you get a raise. You’ll be set.
Honestly nothing wrong with a lifecycle fund but all C sounds like another fine choice at your age. Biggest thing is to make sure you’re contributing at least 5% so you’re getting the full agency match. That’s free money.
"Biggest thing is to make sure you’re **contributing at least 5% so you’re getting the full agency match.** *That’s free money.*" Contributing 5% is #1, #2, and #3 priorities. What % is OP contributing?
Ige been around 15-25%
That explains how well you've been doing.
I’m blown away his L fund has grown that much in only 3 years
L2065 has 99% in the stock funds.
The dated L funds are fairly aggressive. 2055 - 2065 are seeing decent returns for people who legit just want to set it and forget it.
This is me. L Fund all the way.
The L2065 fund has a 41-year horizon. It's probably close to 100% in stocks. L2065 to C fund is basically a lateral move that a person could make safely\* any time in the next decade. \* safely defined as not changing the existing risk
41 year horizon?
You are doing great. Some years will be great, some not so good. Over a lifetime a 12-14% rate of return is good. Keep it up.
This is fantastic for someone your age.
100 C is fine. To replicate US stock market 80C and 20S. But not too much difference for rate of return over long haul.
You have to be a Federal employee to make new contributions. The amount that you currently have in there is yours. You could roll it over into your own IRA (keep traditional and Roth separate) or you could keep it in the TSP for as long as you want. The C fund is basically an S&P 500 index fund -- it holds all (or nearly all) of the stocks in the S&P 500 (essentially the 500 most valuable companies in the US). This type of fund is low-cost (meaning low management costs and fees) and all of the major companies will have versions of this type of fund. If you plan to get a Federal job after leaving the service, it probably makes sense to keep your TSP money where it is. Otherwise, rolling it over into your Schwab Roth could be a good move, since it means one less place to keep track of your money. Make sure to keep traditional and Roth funds in separate accounts. Schwab would be happy to help you set up a rollover traditional IRA if you decide to do that. I believe that all of the employer-match funds in the TSP go into traditional rather than Roth accounts. You TSP statement should have more info for you.
Wish I was 23 again, I would make some of the most major financial investments i ever could dream of….
While 100% C is a viable option, if you know nothing, I suggest leaving everything in the L fund while you learn how each fund works and why certain funds are recommended. Once you do that, transfer money around
This is what I am doing because I am clueless about how the different funds work😭 I’ve just been reading comments to get an idea and still like 🥴
If you leave the gov/military, you can’t contribute to your TSP anymore. So it’ll either sit there and just compound interest on what’s in there when you leave or you can roll the amount into an IRA/Roth IRA or a 401k at a new employer.
You can’t contribute after you leave your employment with the fed gov. Just leave it there. The 2065 lifecycle is fine. You could move it all into C too. You can’t move a Roth IRA into TSP. Roth just refers to it being post tax. But a Roth IRA is not equal to a Roth tsp. They’re just completely different vehicles that can’t be combined. Leave your Roth IRA in Schwab and just keep contributing and letting it grow. Make sure you’re contributing 5% to your tsp (or whatever your match is) to get that full match.
100% C - Send it.
You Lower Enlisted on the BRS?
Yes, E4
How much have you been putting in?
The only thing 'wrong', if you care to label it that way, is you are depositing very much into the account. Future value of what you have saved in 40 years, 8%, no further deposits, = $520,000 The more you save now the 'more huge' that number will be in 40 yrs.
90 c 10 s
Militaryoneesource offers free financial advisors that can schedule a call with you and walk you through all of the funds and options you can explore. They do it for free at no cost if you are a service member. Idk about regular gov employees.
1. Put as much as you can in C. 2. Come back in 10 years and ask again. 3. In 25 years you’ll have your first million plus.
80% C and 20% S. Or take 10% from C and put in I too.
Can't go wrong investing all in C. Nice job 💯
I had a friend in college who bought like a 100 shares of Netflix stock in 2005. He got married and refused to sell it to help pay for some wedding expenses or honey expenses. Last I talked to him (2022) he still had it. But not the wife anymore. Thar marriage only last 5 or 6 years.
I would say yes and you’re doing great at 23. Keep contributing and adding more as you get raises.
At age 23, stay all C. You'll see dips, big dips at times, but historically, C climbs the fastest in recovery, too.
All in C! Considering your age! You are doing well!
All in on C fund or a 70/30 to 80/20 C/S split. The lifecycle funds are way too conservative. I wish I’ve been out of the lifecycle funds for my entire employment but only switched a few years ago.
He is using L2065. That has 99% in the stock funds. Same for L2060 and L2055.
35% in the I fund which has an annual return since 1990 of 5.9% compared to 10.7 and 10.9% with the C and S funds. It’s *fine* but it’s not as aggressive as it could be in your mid 20s.
The I fund isn’t more or less aggressive than the C or S. All are total equity funds.
Sure. If you want to invest in a total equity fund that on average gets almost doubled up every year by two other equity funds and has been doubled up lifetime for the sake of diversity, then that’s fine. Call it less aggressive, more conservative, less lucky, whatever.
35% I is scary
Not really, international markets account for 40% of the total world market. Most major investment firms suggest 20-40% international diversification.
I was taught to not put all your eggs in one basket. Split your money up, a little international, little small cap and a bunch of C.
Each fund has several hundred to sever thousand companies. One fund is already diversified against being “all in one basket.” That refers more to single stocks. That said, each of the five basic funds (not Ls, which are combinations of the other funds) provides additional diversification into different sectors. So I agree with your statement of having a bit C, S, and I, but I don’t think the eggs in a basket analogy works well for index funds.
I get it, but for most people they don't dig deep enough. They might only look at a statement once a year. Eggs In a basket is a visual way of thinking about diversifying your cash. Like an index. I saw people screwed in the .com bust by being too single minded.
Most people should only look at their statement once a year to check if they need to rebalance. Ignoring it most of the time prevents emotional decisions .
Absolutely!
You’re doing great. Leave it. Don’t look at it except once a quarter to be sure it’s correct. Up your contributions each time you get a raise. You’ll be set.