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Roger.D  
#21 Posted : Tuesday, June 30, 2020 5:27:47 AM(UTC)
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Why I don't recommend the International fund or a Lifestyle fund.

The I fund:

2010.....7.94%
2011.....(11.81)
2012.....18.62
2013.....22.13
2015.....(0.51)
2016.....2.10
2017.....25.42
2018.....(13.43)
2019.....22.47
10 year..5.85

C Fund
2010.....15.056
2011.....2.11
2012.....16.07
2013.....32.45
2014.....13.78
2015.....1.46
2016.....12.01
2017.....21.8
2018.....(4.41)
2019.....31.45
10 year..13.59


2 out of the last 10 years International beat the C Fund (S&P 500) 2 times. And only 1 times was less than 5% below.

2010.....-7.2
2011.....-13.92
2012.....+2.55
2013.....-10.32
2014.....-19.05
2015.....-1.97
2016.....-9.91
2017.....+3.6
2018.....-9.02
2019.....-8.98
10 year..-7.74


From the TSP website

https://www.tsp.gov/Inve...s/fundPerformance_I.html

Quote:
While investment in the I Fund carries risk, it also offers the opportunity to experience gains from equity ownership of non-U.S. companies. Because it represents the stocks of companies in many developed countries (excluding the U.S.), it is an excellent way to diversify the stock portion of your TSP allocation.


When the L2050 started in July 2010, it invested 27% in the I fund. In July of 2020 it will be 28%. In January 2046 it will be below 20%

Why would I want close to 30% of my retirement money that is suppose to be growing (with risk), in a fund that historically does not come close to matching the US stock market? I do not need that kind of diversification.

If you wanted a guide to follow, you could look at the makeup of the L fund and replicate it. Minus the I portion. Example.

July 2010

G 3.33%
F 6.67%
C 44.0%
S 19.0%
I 27.00%

Change that to:

G 3.33%
F 6.67%
C 65.0%
S 25.0%

You could go in and adjust things every quarter like the L fund does. Or twice a year, once a year, or once every 10 years.
donaldworrell  
#22 Posted : Wednesday, July 1, 2020 2:19:35 PM(UTC)
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Been in the C fund for 27 years. I enjoyed the drop in price as I knew my monthly contributions would get me more shares. C fund has come back up if it gets back to that all time high of February I will be in great shape as I near retirement. Let it ride. I will only transfer all my C fund into G bonds when I am ready to lock in the value. Not yet.
Roger.D  
#23 Posted : Wednesday, July 1, 2020 5:51:01 PM(UTC)
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Originally Posted by: donaldworrell Go to Quoted Post
Been in the C fund for 27 years. I enjoyed the drop in price as I knew my monthly contributions would get me more shares. C fund has come back up if it gets back to that all time high of February I will be in great shape as I near retirement. Let it ride. I will only transfer all my C fund into G bonds when I am ready to lock in the value. Not yet.



From what I have read, it is suggested to maintain a 60/40 investment ratio in order to keep up with inflation.



thanks 1 user thanked roger.d for this useful post.
RodOrRob on 7/2/2020(UTC)
Roger.D  
#24 Posted : Thursday, July 2, 2020 5:02:22 PM(UTC)
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Originally Posted by: z165012 Go to Quoted Post

I bought into the 2050 at $19.47, got out at $21.60...



Closed today at $21.6880


You missed out.
craigrh13  
#25 Posted : Thursday, July 2, 2020 5:41:54 PM(UTC)
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2 different financial advisors told me to stay far away from any L fund. C and S and a 10% exposure to I find was the recommendation from both of them.
Roger.D  
#26 Posted : Thursday, July 2, 2020 8:59:10 PM(UTC)
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Originally Posted by: craigrh13 Go to Quoted Post
2 different financial advisors told me to stay far away from any L fund. C and S and a 10% exposure to I find was the recommendation from both of them.


Why would you listen to someone that recommends the International?

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