Readers' Comments
Total Comments: 18
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TSP Interfund Transfers Soar in January
Total Comments: 18
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| Close | Change | YTD | |
| G | $12.6432 | +0.0012 | +2.96% |
| F | $11.9243 | -0.1231 | -0.05% |
| C | $10.4442 | -0.8603 | -36.93% |
| S | $12.4303 | -0.9943 | -37.19% |
| I | $14.2858 | -0.7200 | -42.30% |
| Close | Change | YTD | |
| L 2040 | $12.3436 | -0.7348 | -32.33% |
| L 2030 | $12.4331 | -0.6468 | -28.59% |
| L 2020 | $12.6288 | -0.5442 | -24.15% |
| L 2010 | $13.5738 | -0.2956 | -12.20% |
| L Income | $12.5694 | -0.1823 | -6.69% |
October 10, 2008
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Market timing?
navair
Thu Feb 28, 2008 9:24 AM
Post Reply
I often hear TSP transfers in reaction to big(ish) market down-turns as attempts to market time. Selling after the turndown is not market timing. It's panic selling to try to protect the balance invested against further (expected) losses. I held on to my stock fund investments, and have recovered much of the January losses. I expect to still be down (net earnings, up for gross balance) from where I was in 31 Dec '07 but expect to be up very nicely for the last 5 years, thank you very much. I will continue to be invested heavily in stocks up to and during retirement. I have other assets and income sources and will be able to tolerate this type of volatility very handily. My mortgage will be paid at least 3 years before I retire. Will you be making mortgage payments in retirement?
New contributions
IT Spec
Thu Feb 28, 2008 10:37 AM
Post Reply
I left my existing investments along but shifted all new contributions to the stock market and no G fund purchases.
I want to buy stocks when the prices are low. I also want to boost my asset allocation from 60% stocks to 70% stocks while keeping 30% in the G fund.
Contributions and Timing
DOD
Thu Feb 28, 2008 2:05 PM
Post Reply
I transferred existing assets into the G Fund in order to avoid further losses during this time of volatility in the market. That said, I continue to diversify my current allocations between the stock funds (including I Fund - I believe that the emerging markets are still a good investment) and L fund (I'm in for the long haul and have many years left to invest). I'm always happy to "buy low." Once the market gains a bit more stability, I fully intend on shifting assets from G Fund back into stock and L funds.
Re: Contributions and Timing
IT Spec
Fri Feb 29, 2008 11:18 AM
You are selling low. You plan to shift the money back when the markets show signs of stability. Translated that means when the market is up in value. You are selling low and buying high.
You did exactly what you should not do. You have a long way to go till retirement, you should not let the market drops both you.
There is an old saying about losing more money trying to protect money as opposed to just staying the course and letting your investments run. I have done it myself in the past. Now I'm just going to hang on for the ride.
My feeling is if I can stay in the market when I still have an income, how am I going to handle the ups and downs when I am retired?
Sell Low...
EPA
Thu Feb 28, 2008 2:07 PM
Post Reply
I'm always amazed at the irrationality of selling low. I'm guessing in another year or so when a bull market develops we'll see an article about a mass transfer of G fund money into C, S and I ...after they go up!
Stay put and stand tall..you're in for the long haul my fellow feds!
Re: Sell Low...
DLIFLC
Tue Mar 4, 2008 10:23 AM
thrift board trading restriction
DOI
Thu Feb 28, 2008 4:03 PM
Post Reply
the frtib has restricted employees to 2 transfers per month...their goal is to make themselves look good by having the lowest cost of operating the thrift fund among all the 401k funds around the world at the expense of the employees being able to maximize their own returns. The purpose of the thrift fund has been seriously compromised by the new policy of the frtib.
The federal employees opportunity to grow their accounts has been seriously compromised by this new policy of the frtib. The frtib needs to change from a mutual fund approach to an ETF style with individual accounting for the cost of making trades.
What about us close to retirement
Uncle Sam
Thu Feb 28, 2008 5:03 PM
Post Reply
We can't help it, been in TSP since 1989. Account dropped $30K in 3 months (Nov 1 to Jan 31), you say say wait it out and don't jump funds as this is long-term investment, but what about us who are close to retirement. Wait it out will not work, just don't want to lose anymore $. FYI, in 2007 I contributed more than I actually earned in my TSP, I fund.
Re: What about us close to retirement
dod
Fri Feb 29, 2008 6:27 AM
First two comments (plans) right-on!
USFS
Thu Feb 28, 2008 5:05 PM
Post Reply
If you can stay in the game without having to draw on the TSP, unplanned for, read the good advice I just read from the navair eng and the IT spec.