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TSP Funds Set to Dive After Panic in Overseas Markets
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| Close | Change | YTD | |
| G | $12.6972 | +0.0013 | +3.40% |
| F | $11.9749 | +0.0219 | +0.38% |
| C | $8.6601 | -0.6223 | -47.70% |
| S | $9.4250 | -0.7684 | -52.37% |
| I | $11.4821 | -0.6136 | -53.63% |
| Close | Change | YTD | |
| L 2040 | $10.4314 | -0.5746 | -42.81% |
| L 2030 | $10.7668 | -0.5171 | -38.16% |
| L 2020 | $11.2461 | -0.4459 | -32.46% |
| L 2010 | $12.8789 | -0.2531 | -16.70% |
| L Income | $12.1740 | -0.1561 | -9.62% |
November 21, 2008
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TSP Funds Dive
Defense
Tue Jan 22, 2008 8:41 AM
Post Reply
Best advice is don't panic. The market goes up and down and buying and selling in a panic mode only contributes to the votility. Long term advances will overcome any short term ups and downs....during the last round of paninc selling I held my shares and more than made up for the short term loss by standing pat and holding my shares....investor confidence does more to stablize the market than buying and selling...be a smart investor.
Re: TSP Funds Dive
Garrison
Tue Jan 22, 2008 10:48 AM
Re: TSP Funds Dive
Department of Justice
Wed Jan 23, 2008 5:58 AM
Just Wait
DOD
Tue Jan 22, 2008 9:50 AM
Post Reply
As I remember 1987, the Market was back in six months and only those that got out got hurt. And while we are waiting for the market to come back, we are buying stocks at lower price. :-)
TSP Funds Set to Dive After Panic in Overseas Mark
DoD
Tue Jan 22, 2008 10:17 AM
Post Reply
Of course the Government won't protect your retirement funds and the TSP Board is also trying to prevent you from protecting them by allowing only 2 moves per month. Ain't it grand that you got all these people looking out for your welfare? Oh yeah, don't forget about those cruise control Life cycle funds. I just hope your're not to near to retirement, so you have enough years to make up for all the loses. We're losing a heckuva of a lot more than the fantasy numbers that IFT's are supposedly costing us, since we've never seen the numbers, just the word of those protecting our retirement funds. Dang, that makes me feel warm and fuzzy all over.
Civil Engineer
Proposed rules would kill retirement accounts
DoT
Tue Jan 22, 2008 11:07 AM
Post Reply
If the proposed TSP changes limiting interfund transfers is adopted, it will kill retirment accounts. Here's how:
Let's say today that Joe Snuffy hit the panic button, and moved everything off into the G fund. He made a small move once before this month, rebalancing when he saw the markets going down a couple weeks ago.
He's now used his two trades, and he's locked into G for the rest of the month.
Just take this moment, and see what happens next. Odds are that the funds will rebound, at least somewhat before the end of the month. But by being locked in to "two moves a month", he's locked OUT of any chance of a rebound.
Transfer limits are a bad idea. Let's watch what will happen to Joe Snuffy for the rest of the month, after he's just locked in a 11%+ decline for the month.
Panic is a human emotion, and not being able to change his mind will cost him dearly.
Re: Proposed rules would kill retirement accounts
DA
Tue Jan 22, 2008 3:51 PM
Changing Your Views?
USDA
Tue Jan 22, 2008 11:31 AM
Post Reply
Now let me get this correct...are you now advocating the transfer of funds because the market is dropping? And what about another transfer when the marked starts to climb? Oh my gosh! How much money will this cost me for everyone performing fund transfers???!!!
By the way, this is intended to be tongue-in-cheek for all of you folks who don't want to manage your own TSP funds on a daily/weekly/monthly basis, with regular fund transfers.
Dollar cost of reactionary moves
dod
Tue Jan 22, 2008 12:46 PM
Post Reply
I wonder how many market timers are selling after the prices went down... and won't buy back in until after the prices come up again....
In other words selling when the price is down and buying when the price is up. Doesn't sound very smart..
Re: Dollar cost of reactionary moves
FAA
Tue Jan 22, 2008 6:56 PM
"In other words selling when the price is down and buying when the price is up. Doesn't sound very smart.."
That is absolutely correct. It isn't smart. But when you ae dealing with human emotion, you run into this risk. People may panic and sell- as they did in 1987, in 2001, anytime there is huge shifts- and it looked like today.
But with a proposed 2-move limit per month, if the market settles down, and the person wants to move back, they are locked into the loss.
The biggest harm comes not from moving, but from being prevented from moving, after responding to a human emotion, and then deciding it's not so bad after all.
In the example given by the other person (Proposed rule will kill...) It looks like Mr. Snuffy would have sold his C shares today at 14.79. And won't be able to buy back in until February 1st.
I agree- limits are a BAD idea, and will cause people to lock themselves out more often that help them.
Re: Dollar cost of reactionary moves
DHS
Wed Jan 23, 2008 7:57 AM
Re: Dollar cost of reactionary moves
FAA
Fri Feb 1, 2008 5:03 PM
I gave the example of the person who panicked and sold on Janary 22nd- and would have then been locked out of any more movement until February 1st. He would have "locked in" his losses on January 22, a day when the C fund was at 14.79.
Now, today, February 1st, he would be able to buy back in under the Thrift Board's proposals. Except that he would have to pay a lot more for his shares- today they will be priced at $15.76 a share.
The person would have missed out on that difference.
I ask you- what benefit is served by locking this person out? Is it to "reduce costs"? Then why have the TSp funds constantly BEAT the indexes they follow since people began vigorous interfund transfers? Limiting people and locking them out will NOT reduce costs, or increase returns for the buy-and-holders.
So why is it then that the TSP Board wants to do this?
That is the question. I believe they don't know what they are doing.
Staying Put in TSP
Social Security Admin
Tue Jan 22, 2008 5:20 PM
Post Reply
I am 3 months from my CSRS retirement. Although I am not matched by the Govt., I have significant funds in my TSP, due to transferring my traditional IRA's into the TSP and making the maximum contiribution to TSP for a number of years. I was very upset yesterday reading about the worldwide economic downturn and my balance was already down over $8000.00 from last month. However, I decided to let my TSP stay where it is - 45% L, 17% G, F-5%, C-13, S-13, I-7%. I am glad I did. Although I probably lost some more today, and may continue to lose, I will keep investing, buying more shares at lower prices and hope that by the time I want to tap the TSP I will have gained back ground. I urged my younger colleagues today to do the same- stay in your L funds and don't lock in your losses. If you don't touch it, it is only a paper loss. My gains over the past 4 years have been over $54,000 and in those 17 quarters, I only had losses in 4 quarters. Buy low, sell high and you will be fine.