Which to chose?

[setab]

I've finally got my TSP funds parked in Vanguard MM Prime. While it is tempting to leave them there and take the no-brainer 5+ percent, I think I should go for a little more. I have been watching Wellington, Wellesley, Life Strategy Coinservative and Moderate and Target 2015 and have considered a mix of all of these. I have several questions: Is there too much duplication in these; should I pick one or two at the most; are there better options. Wellington has a $25,000 limit for new investors. Thanks.

setab

 

[saluki9]

I would avoid doing a mix of all of them, you will just be duplicating many of the positions without any benefit.

I don't know how old you are or what other holdings you have. Based on the limited info I do have I would say this...

If this plan is the majority of your holdings I would put most of your money into the target retirement fund and put maybe 10% into Wellesley for a value tilt. Even after their adjustments I find many of the target funds too conservative

If you have a lot of holdings outside the plan I would use the tax deferral to hold your fixed income. Thats what I do.

 

[setab]

I am 59 and have some limited outside holdings and a DB pension plan.

setab

 

[yakers]

Well I expect to leave most of my funds in the TSP, did you transfer all your TSP funds? I would have left some to use the G(bond/cash/stable value) fund for bond holdings. The main reason I would move funds to VG (or anyone else) would be if I expected to roll them over into a Roth IRA or if I want to add asset classes not avialable in the TSP. So I would first look at those asset classes like REITs, value funds and specific market foreign funds.

 

[setab]

I rolled it all over. I wanted more control over it than the TSP allows and I wanted to add to it. The Vanguard MM Prime can provide the same return as the G fund and similar stability for my purposes.

setab