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Stock Market Volatility and Your Retirement Funds: How Did TSP Investors React Last Week?

Volatility

Electronic Tech
DOD Navy
Tue Aug 14, 2007 9:52 AM

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If I had those "investment hindset glasses", it would make this investing a whole lot easier. This has been a very bumpy investment road as of lately. If I was not already in stocks I would switch to it now believing it will make up any loses as of lately. But I must admit that even I have a hard time accepting any loses once I have acquired them as gains. Still the market always returns with time and with or without our patiences. So I must take the loses if I expect to win the gains that will over all exceed in the end.

Re: Volatility

Program Manager
AFMC
Tue Aug 14, 2007 10:57 AM
Or think of it this way, with the funds way down now, your rountinely invested dollrs will buy more shares. If you are in it for the long run, and invest on a regularly timed schedule, these fluctuations are a good thing. Of course, if you plan on retiring soon, it would make the situation a little bleaker, but a person retiring in the short term shouldn't have much money left in the higher risk and therefore more volatile funds anyway, eh?

Stock market Volatility

Contract Specialist
HHS
Tue Aug 14, 2007 12:08 PM

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I said it before and it needs repeating. Dollar cost averaging is a great mechanism for risk averse feds. If one contributes to the TSP with every pay cycle, this is already occuring so long as the fund is left alone. For example, last week the day before the fed payrole went out, the general market dropped; this presented an automatic buying opportunity for everyone. But because the fed payrole cycle coincided with this drop, TSP contribuitions purchased shares at the lower cost. This is the second time recently where this "timing event" occured without a TSP particpant even thinking about it. And as stated in the news article, by months end most likely the share prices will have risen - so even with shares bought at this higher price (using the same stratigy), the average total share cost is much lower than the market value. Assuming adiquate diversity and except for the annual review/rebalance exercise, leave your TSP alone.

$ cents

gor
school of fools
Tue Aug 14, 2007 2:04 PM

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Iif you cannot take the pain, get out of the dungeon.

FED

ATCS
DOT/FAA
Tue Aug 14, 2007 7:25 PM

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The Markets are on unstable ground so with every bit in G Fund I plan to buy, were just seeing the start of this cycle there should be another large drop as hedge funds en-mass tank and the FED injects more cash to keep the system juiced up, they just keep printing money and selling securities to Asia to bank roll a little thing called Iraq.
soon hyper-inflation should start to come into play, even if they lower rates its not going to fix decreasing dollar values and increasing commodity prices, the start of hurricane season is just about here. oil could go sky high if the gulf is hit hard, Sept will be the tell, thanksgiving a turning point. hate to be so neg.

Re: FED

manager
dhs
Wed Aug 15, 2007 1:54 PM
How close are you to retirement?

Re: FED

ATCS
DOT/FAA
Thu Aug 16, 2007 9:11 PM
41 w/21 years of service, working til 56 total of 36, as you know plans change over time, not sure i want to stay the course, program managers seem more willing to contract their workers.
Total Comments: 7
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