Readers' Comments
Total Comments: 13
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Riding the Stock Market Roller Coaster In Your TSP
Total Comments: 13
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| Close | Change | YTD | |
| G | $13.2102 | +0.0011 | +0.69% |
| F | $13.6263 | -0.0136 | +2.19% |
| C | $13.8822 | -0.0041 | +5.03% |
| S | $18.1185 | -0.0839 | +10.07% |
| I | $18.5861 | -0.1653 | +0.26% |
| Close | Change | YTD | |
| L 2040 | $16.2757 | -0.0497 | +4.10% |
| L 2030 | $16.0266 | -0.0418 | +3.66% |
| L 2020 | $15.7897 | -0.0336 | +3.06% |
| L 2010 | $15.4792 | -0.0113 | +1.70% |
| L Income | $14.1011 | -0.0086 | +1.59% |
March 19, 2010
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Riding the Stock Market Roller Coaster
EPA
Fri Jul 27, 2007 9:12 AM
Post Reply
One other thing to remember is that stocks are still up 5%, 6% and 9% for the C, S and I funds year to date. Moving money around every week or month is not how you establish a retirement fund. Having a balanced TSP portfolio as you say is the correct way. Chuck
Response to Article
DOT
Fri Jul 27, 2007 9:28 AM
Post Reply
Ralph - that is SOUND ADVISE - same advise my financial advisor gave me in Feb when we took the last free fall. He said turn off the TV and enjoy life - it is just a bump. You need to look at the BIG picture. Then in the ensuing months the market went way up, tough in Jun, and then a record in Jul. The reason we have these big swings is more due to investors over reacting to "reports". If everyone just kicked back when reports show some issue, the market might not go up too much or too fast, but it won't free fall. So you are absolutely right - spread your money out and go on vacation and do not panic! The world is not coming to an end!
Drop in market
HHS
Fri Jul 27, 2007 11:47 AM
Post Reply
Looks like a good time to buy to me. Fortunately, the market picked this week to drop which coincides with a pay cycle. So, this cycle's TSP contribution will buy more than it would have last cycle.
This is So Dead-On...
DoD
Fri Jul 27, 2007 12:16 PM
Post Reply
Investment is one great, big roulette wheel--and if you can't stand the suspense, best to park your $$ in the safer G fund. You'll never lose $$, but you won't get rich either.
I was one of those folks who DID NOT pull their $$ last Feb, and I'm glad now that I toughed it out. Ralph's right, you've got to diversify, mix your allocations depending on where you are in your career. I'm approaching 30 years service, so I plan to be more conservative THEN. For now, I'll gamble a little and expect to lose $$ from time to time.
Every fed w/a TSP account should educate themselves about their holdings. If losing $$ really scares you, put your $$ in G and/or Lifecycle funds and forget about it. (It was Ralph who said that even the L Income fund outperformed the G fund.) But what the TSP has taught me is that managing/making $$ is a fascinating hobby, especially when it's your own.
TSP
USDA
Fri Jul 27, 2007 12:21 PM
Post Reply
A couple of years ago,I counseled employees on retirement rules, gave estimates on monthly payments, etc. It amazed me how little both CSRS and FERS employees know about how the retirment systems work, how annuities are determined, TSP investment options, etc. Many operated under false assupmtions and themes. Little or no planning or self education was being done; many used their TSP accounts as ways of getting"cash" for children's tuition, cars, etc. Many feared the stock market because of what happened in 1999 thru 2001 A lot had never been on the TSP website to read about TSP; never used the calculators (or new withdrawal options) didn't and still don't understand the L funds or concept behind them. CSRS employees were really bad about TSP, with a lot of them not investing at all; regularly withdrawing funds for short term benefits; and not focusing on what the TSP account could do for you after retirement.
Let it Ride
DA
Mon Jul 30, 2007 7:03 AM
Post Reply
Those selling when the stock market hits some bumps apparently never heard the phrase "sell high, buy low". When dealing with the stock market, the sound advice is always diversify and hold out for the long term. History has shown the stock market has gradually gone up over a span of years. I invested about 3 grand outside of TSP when the stock market hit a big nose dive back in the early 2000's and without adding more money to it, that investment is now worth over 10 grand. All I did was invest after the nosedives and sit on it. Granted your $$$ will go up and down, but you really don't lose money unless you sell it while it is low! I am a young federal employee; I have to serve over 30 years before I make the minimum retirement age, so I am planning on not having Social Security around by the time I'm ready to retire. I am taking the risks now, then transfering over to safer investments in about 30 years... I am certain it will pay off.
DUH !!!
EPA
Mon Jul 30, 2007 8:25 AM
Post Reply
I was just discussing the markets free fall last week with a group of co-workers and nearly fell to the floor when more than one person stated it didn't bother them because they don't contribute to the TSP.
I wanted to give them all a swift kick in the butt and hope they wake up.
Re: DUH !!!
DON
Tue Aug 14, 2007 9:41 AM