UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: wcfenton Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76384  
Subject: Re: Lately... Date: 2/12/2004 4:43 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Mark...

I agree pretty much with the "madCapitalist" on your allocation. The only comment that I would make would be that the Wilshire Index offered in TSP is the Wilshire 4500 Index which represents MidCap and SmallCap Companies. Your S&P 500 Index represents (or tracks) LargeCap Companies only. The two are not alike at all.

http://www.tsp.gov/uniserv/features/chapter09.html#top

If it were my account, I would pretty much stay with just the S&P 500 Index Fund for the time being. Reasons are that now is really not the time to be getting into bond funds when we are probably going to see the start of an inflationary period not too far down the road. At some point you may wish to include the bond fund, but I would do a little studying on how bonds and bond funds respond to periods of inflation and deflation first.

Also, a younger person can stand a little more risk in the market then a person who is closer to retirement. Stocks are inherently riskier then bonds or bond funds, hence they tend to give the investor a higher yield over extended periods of time. The S&P 500 is a really good, time-proven stock index fund and should do well for you over time. (Disclaimer - no crystal ball here)! Just my opinion.

If you must reallocate at this time, my opinion would be to include some of the Wishire 4500 Index to get a little exposure to the rest of the market.

Regards,
Bill



Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Russia Collapsing Again?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement