I'm currently a civilian federal employee, aged 33 with 15 years of government service under my belt (my time at the Naval Academy and in the military all counted towards government service). I am currently planning on staying with the government until retirement. As such, if I retire at 62, I will receive a 48% pension. If I left today, I would receive a ~15% pension (although it wouldn't be adjusted for inflation until I turn 62).
I have been maxing out a Roth IRA with Vanguard since 2002, and started contributing to the TSP about 5 years ago. I was almost 100% US stocks (VTSAX) until about 5 years ago, when I started reading up on asset allocation and shifted to the below allocation. I continue to max out the Vanguard Roth IRA, and contribute 5% of my income to TSP and receive a 5% match. This works out to a total of a little over 15% of my income per year (invested monthly) between the two accounts.
I was hoping for a critique of my asset allocation. I believe that I have a good risk tolerance, I made it through the 2008 downturn without changing anything. In fact, I have never made any attempts to time the markets... I've only moved money around a few times and that was to rebalance into my desired asset allocation.
Across the 2 accounts, I currently maintain the following allocation (with an annual rebalance on January 1st):
US Equities - 54% [Vanguard US Total Stock Market (VTSAX) and TSP C Fund & S fund. (TSP funds are split to 70% C Fund and 30% S Fund)]
REITs- 9% [Vanguard REIT Fund (VGSIX)]
International Equities - 27% [Vanguard Total International Stock (VTIAX) and TSP I fund]
Bonds- 7% [Vanguard Total US Bond (VBTLX) and TSP F fund]
G Fund - 3% [TSP G Fund]
I am planning on maintaining this allocation until I am ~45, after which I will start slowly shifting the allocation towards a more conservative allocation (I have a lot of time to figure out the best way to do that!).
I have been lately questioning my decision to weight REITs so heavily (I know they are represented in the total US market funds) and my bond/G fund allocations. My risk tolerance is high, and I have some form of a pension coming, but I'm still not entirely comfortable with having only 10% to Bonds/G funds.
I have read up on Fama/French and factor tilting, but am not convinced that it is worth the effort at this point, especially considering that I don't have access to the DFA funds without leaving Vanguard and paying an advisor.
Thanks for your help!
_______________________ | Chris N.