I'm a long term fool reader and first time board writer. I recently tried my hand for the first time with the foolish four. I feel good about it. Now my concern lies with my spouse's Thrift Savings Plan. (He's a federal Criminal Investigator) Right now my spouse contributes 5% and will max it out later this year. He has the option to choose among three investment funds. 1. Government Securities Investment Fund-this is invested in short term risk free US Treasury securities. 2. Common Stock Index Investment Fund-invested in a stock index fund that tracks the S&P's 500 stock index. and 3. Fixed Income INdex Investment Fund-this is invested in a bond index fund that tracks the Lehman Brothers Aggregate bond index. Right now my spouse has divided his contribution up as 20%, 60% and 20% respectively. I want the most bang for the buck. Wouldn't it be best to put 100% in the Common Stock Index Investment Fund? We have until the end of the month to make a decision so any suggestions would be greatly appreciated.
If I was in your position I would go with the 2. Common Stock Index Investment Fund-invested in a stock index fund that tracks the S&P's 500 stock indexthis is assuming that you are under 50 *G* You mind remind your fiance that there are 2 kinds of risk. Volatility and Low Return. The risk of volatility is reduced over time. The risk of Low Return in increased over time. If he can move the funds once they are in the plan putting 20% or more into the other funds might not be a bad idea, if you can take advantage of down turns and move the money over to the Common stock fund.
Now my concern lies with my spouse's Thrift Savings Plan. He has the option to choose among three investment funds. 1. Government Securities Investment Fund2. Common Stock Index Investment Fund-invested in a stock index fund that tracks the S&P's 500 stock index. and 3. Fixed Income INdex Investment Fund-I am with the VA's thrift savings plan. I also started cautiously with an egual spread between 3 options. 2 years ago moved 100% to the C fund... our stock fund. True it might go down .. but it should do more than 4-6% in a money market for now.I believe I can change the distributions monthly. Fortunately, I have been too busy to "mess with things", and over the year it did about 18%.It's almost time to grow tomatoes :)
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