4 Big Purposes of Money!

There's really only four purposes to any bucket of money.
The first purpose is safety. Typically, on an average portfolio, this is going to be 5 to 10%. It's going to be in a checking your savings account. It's not designed for anything else but to get access to in a pinch.
The second purpose of any bucket of money is income. You may live 30 plus years in retirement, you or your spouse. So you need to have a giant bucket of money that's going to last you the rest of your life. Typically, this is 50 to 70% of your entire portfolio. This is to acquire income in retirement.
The third purpose of any bucket of money is growth. Typically, this is 10 to 20% of your overall portfolio. This could be for short term or long term growth. This could be for a new vehicle. It could be for a bucket list vacation around the world, the fourth and final purpose of any bucket of money is going to be long term care / estate planning or death benefit.
So you have to ask yourself, what is the purpose of this TSP?
Is it for income? Is it for safety,
Is it for growth or is it for estate planning?
If it is for income or growth? That leads us to number four, which is maybe it's time to do an in-service rollover.
If you happen to be in a position where you're approaching retirement or already retired, you may not have known this, but you can actually do what's called an in-service rollover where you can take your earnings off the poker table and you can put it into something specifically designed for income, specifically designed for growth, specifically designed for long term care planning, specifically designed for death benefit.
You can take your money out of it and keep contributing to your TSP while you're working and finishing up your working years.
And you can basically put it into something safer, put it into something that's going to grow and compound, but still have saved your principal