It's the end of the month and I'm reallocating our TSP as follows:
I'm dropping the cash (G-Fund) component by 10% and allocating more heavily to the S&P 500 (C-Fund) as well as the EAFE (I-Fund). What we're seeing in this downturn is a shift away from faster-moving small-cap stocks (S-Fund) into more traditional blue chip stocks (C-Fund), where greater safety typically resides. The reduction in G-Fund is simply because I want to play a bit more in the market as we've dropped a few percentage points from the last time we made an adjustment. As the market drops, you should buy the dips, especially if your horizon is longer-termed.
While my crystal ball is as good as yours and I have no idea if this recent pull-back is temporary or will continue, I want to take advantage of the "free" shift that we get at the end of the month. If you make the transfer by noon on 3/31 you'll start April with your two-allowed-transfers available.
Performance has been slightly negative over the past 45 days, but if we're not in the market, we can't play the market.
Adjust your percentages according to your risk tolerance. Kari and I have many years before we can tap these funds so our risk tolerance may be higher than yours.
Remember, you are responsible for your investment decisions and I am not. Take ownership of your actions.
Regards,
pgd
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