Slice Your IRA Pie
Hey folks the S&P 500 recently broke out over the 2873 level I talked about in the 23 Aug blog titled "Aug Investor's Report"so this is what I'm doing with it. I changed my Thrift Savings Plan (TSP) allocation to overweight C Fund, to 60% from 40% a couple of days ago. I also eliminated all F & G Fund which is the Fixed & Government Funds respectfully.
My reasoning is that if the S&P 500 index is breaking out and printing new highs then I want to capitalize on what most likely will happen from this catalyst. Since the Standard & Poor's is market cap weighted, meaning the more earnings the companies within the index bring in the higher the numerator in the index, then the healthier said companies are doing. I see growth on the horizon for the near term so this is my passive play.
Secondary to the C Fund my next heaviest position is my S Fund which tracks small cap firms. The Russell 2000 which is comprised of the same has been doing very well over the last few months and recently broke out, so I what to take of advantage of that as well.
Keep in mind that I'm 37 and active duty military so I can afford by age and future pension to appropriate my Funds as such. For my older followers I would not suggest the same weighting yet I would suggest consideration if you're equal weighted or underweight the S & P.
