No. of Recommendations: 0

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.

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.


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