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Agressive Investing
Posted by outlaw | Posted in Investing | Posted on 16-02-2009
Aggressive Allocation
I am a very risk tolerant person and therefore my retirement account is invested heavily in stocks. In fact more than 95% of it is in stocks. I know most out there would say that I am crazy and that I am going to loose my shirt. Well you would be right I did loose more than 40% last year in my account.
Why I can be so aggressive
I can afford to invest so aggressively due to the fact that I am a career military man and I I have a defined pension. The military pension is one of the most lucrative out there. I will receive 50% of my base pay upon completing 20 years of active service. This pension is payable once I exit the active duty ranks. I do not have to wait until I am 55, 62, or even 65. Nope I get to start receiving a retirement check when I am 38 years of age (that is when I am eligible for retirement).
This pension I count as having retirement funds in cash. That is why I feel that I can invest the 10% of pay that I place into my TSP account almost entirely into stocks. If you are lucky enough to have a defined pension plan as well as the option of a 401k I think it makes perfect sense to invest aggressively while you are young.
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