Close to Retirement

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    What are your thoughts on moving money to safer (G Fund) places as you get closer to retirement?

    TS Paul

    I wrote about just that on the Frequently Asked Questions page:

    But that shouldn’t be the final word – I hope other readers will share their thoughts as well.

    The TSP Allocation Guide

    Steve M

    As you approach retirement you need to assess your overall investment strategy in comparison to your total assets and what your needs will be in retirement. A bucket strategy is a great approach and Morningstar has published a lot on this topic and provide some good ideas for consideration. Basically, in simplest terms, you have a conservative bucket such as the G Fund where you have enough invested to cover 1-3 years of expenses, then another bucket a bit less conservative that may include diversified ETFs of stocks and bonds and then a third bucket of growth stocks and less conservative investments beyond a 10 year range, each year you rebalance. In essence, your will be taking gains from buckets 2 & 3 in a good market during the rebalance phase to supplement bucket one which is primarily drawn from during down markets. Most importantly, there is not one perfect system, stock fund, allocation or piece of advise that fits all. Your specific resources, time horizon, needs in retirement, health, support of others, ability to take risk etc all have to be considered. Best of luck. Steve M

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