From my inexperienced eye the TSP seems like a pretty solid vehicle for me. ER 2.9 bp, funds for bonds, large-cap, small-to-med-cap, and international which match the indices quite well, and target date funds...if you're into that sort of thing. That, and it's the only fund I can put $18k a year into right now other than my wife's 403b.
My question is what proportions people like to use and how that would equate to a standard portfolio's makeup, for example, the Bogleheads' favorite Three Fund Portfolio (1/3 total stock, 1/3 int'l stock, 1/3 bond).
For outsiders, I'll break it down:
So in trying to emulate the Three-Fund Portfolio (the examples are VTSAX, VTIAX, and VBTLX), it seems like I'd have to split the total stock between C and S, which would result in 17% C, 17% S, 33% I, 33% F.
Not saying that's exactly what I or anyone needs to do, but I wanted to pick some brains, esp WCI since he used the TSP (and still does, according to his Portfolios Better Than Yours) post.
My question is what proportions people like to use and how that would equate to a standard portfolio's makeup, for example, the Bogleheads' favorite Three Fund Portfolio (1/3 total stock, 1/3 int'l stock, 1/3 bond).
For outsiders, I'll break it down:
- G fund: basically like TIPS, usually a set 1.5-2.5% return
- F fund: tracks the Barclays Aggregate
- C fund: S&P 500, large/med cap
- S fund: Dow Jones U.S. Completion TSM Index (but not quite total stock; doesn't include the ones in C fund), med/small cap
- I fund: EAFE
So in trying to emulate the Three-Fund Portfolio (the examples are VTSAX, VTIAX, and VBTLX), it seems like I'd have to split the total stock between C and S, which would result in 17% C, 17% S, 33% I, 33% F.
Not saying that's exactly what I or anyone needs to do, but I wanted to pick some brains, esp WCI since he used the TSP (and still does, according to his Portfolios Better Than Yours) post.
Comment