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Following the Herd? TSP Investors Moving Billions into the G Fund

TSP

Retired
USPS
Wed Oct 15, 2008 9:22 AM

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None of this will matter in the slightest. If we end up with a President Obama, redistribution of the wealth will cause massive inflation to where we will all need wheel barrows to haul around currency.

The only steady employment will be the Bureau of Printing and Engraving.

Good luck to us all!

Re: TSP

Position Classifier
Dept of Homeland Security
Wed Oct 15, 2008 9:36 AM
I hope you are wrong!

The media is trying to get everyone to think Obama has the election all tied up with a bow on top. Let's show them they are wrong and vote McCain and pretty Sarah Palin in. She's a lot easier on the eyes than Biden !! Ha ha

Re: TSP

Supervisor
USFS
Wed Oct 15, 2008 10:00 AM
I object..............this is not the place for presidential campaign comments.

I would have lost more but that's all the money I

soon-to-be-retired
DoD
Wed Oct 15, 2008 9:27 AM

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I know, that's a 'steal' from someone else, but it's exactly how I feel, and since I'm about to retire, I'm looking to not lose my shirt, skirt, or shoes before I leave. There is wisdom in what the author says, but I'm not young enough to want to risk any more loss at this point in my life. My TSP is not going to be a monthly part of my retirement, at least until I'm 70-1/2, or unless some disaster occurs. But I want to know there is SOMETHING STILL THERE! Besides, I moved my funds months ago, and plan to watch and when I feel more confident, I'll move some funds back into stocks to grow my money. To each his/her own.

Following the Herd?

Position Classifier
Dept of Homeland Security
Wed Oct 15, 2008 9:29 AM

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Regarding the article about employees transferring their TSP funds to the safety of the C fund I add this for your consideration. Warren Buffet, the wealthiest man in America (he just passed Bill Gates for this honor) is BUYING millions of dollars of stocks for his mutual fund offerings. By the way you need a minimum of $1 million to invest in his funds. He is buying when the market is down, buying stocks on sale, similiar to buying steak on sale at the grocery store. There is nothing inherently wrong with the stocks, the market jitters and slides will eventually correct itself. Smart money stands firm. Fearful weak investors sell! Don't follow the pack. Be a leader and stay in your I, S, C and Lifecycle funds. I did !

Re: Following the Herd?

Tom
HF
Wed Oct 15, 2008 2:34 PM
Ha, Buffett has money to burn and he's got preferred shares BTW.
Go ahead keep your stocks and hold down the fort for the team! Keep working until your 80's. haha

Re: Following the Herd?

CO
SSA
Thu Oct 16, 2008 9:27 AM
Position Classifier,
For the record, Berkshire Hathaway is not a mutual fund, it's a holding company. Also, with a sharebuilder account, you can buy partial "B" shares for as little as $100 a month. There is no minimun $1M buy in. However, you can not buy partial "A" shares.

I saw the light w/Buffet years ago and have been buying patial shares on an auto monthly basis.

For all of you who pulled out of the C fund, you've officially locked in your losses. Next step is to buy high when all the smoke clears.

Returns

Position Classifier
Dept of Homeland Security
Wed Oct 15, 2008 9:33 AM

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The reason you get such high returns on the C, I, S, etc. funds is because you are willing to take the risks. In certain times, like now, it will drop down, but in other times, it will go up. No risk = mediocre returns. The higher the risk you are willing to take, the corresponding higher returns you may accept. Come on people, this is not rocket science.

If you are not willing to take the risks, the common wisdom is, if you are 5 years or less to retirement, you should minimize your exposure to stocks, but NOT in the middle of a BEAR market.

Also, everyone should Always remain in stocks for the inflation protection. Without stocks, inflation will eat you alive when it rears its ugly head again...

Re: Returns

Civil Engineer
VHA
Wed Oct 15, 2008 11:01 AM
But the decision here is not either risk or no-risk. You can manage the risk. You can dollar cost average a lot more if you sell high and buy low. No on'es been able to sel me yet on the idea that my selling my C fund share at above $16 a share (when they're now $11+) was a bad idea. I don't need to pick the exact bottom to know that if I buy them again for $12 or $13 a share that I'm better off.

Sure you can buy your shares, like you buy your meat, on sale - but if you expect beef prices to keep declining, do you stock up now or later?

You haven't lost it til you sell it

Lead Archives Technician
NARA
Wed Oct 15, 2008 9:37 AM

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I know everyone's situation is different. I am 8 years from retirement. I was stressing over all the money I had 'lost' since January. Then, when I heard last week that GM was trading at 1950's prices, I realized I hadn't lost anything yet. I still own the shares I've had all along. At that point, I decided to switch a portion of my future contributions - 100% of which I had going to the G fund since June - to stocks. This is the time to buy - if your situation warrants it.

Re: You haven't lost it til you sell it

Tom
HF
Wed Oct 15, 2008 2:38 PM
I wouldn't even touch GM shares, 2009 is going to be a bloodbath for American automakers and GM just announced it is closing more lines. It actually may go belly up sooner than later, bleeding >5billion per quarter is not sustainable.

Good Advice

Program Specialist
ACF
Wed Oct 15, 2008 9:39 AM

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Warren Buffett says "Buy when everyone is selling and sell when everyone is buying." He's the self made billionaire.
If you take advice from someone, at least take advice from someone that is successful in what they are giving the advice about.
I love the herd mentality, it helps me ultimately make more money.
You who are in the G fund, at the very least you should allow the money coming out of your paycheck to be going into the C,S, & I funds. The funds are 40% off right now. Look up the term dollar cost averaging. If it goes down even more, every 2 wks. your money from your paycheck will continue to buy it down. You cannot time a market. At least take advantage of the discount while it is in the range of bottom. If it continues for a year or so at this level, you will have continued to add for when it goes up. Good Luck!!!!

Re: Good Advice

Systems Analyst
USCG
Thu Oct 16, 2008 11:18 AM
Sage advice. If you need to protect the bulk of your money because you're close to retirement I see no problem moving that to safe investments, however, put future contributions in the C,S,&I funds ... they will go up!

What is your tolerance

Inventory Manager
USCG, Dept of Homeland Security
Wed Oct 15, 2008 9:44 AM

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There is no potential wrong thing to do. It is whatever your comfort and tolerance is for the swings. If you are close to retirement and feel safe moving to G...why not. That is basically what the L funds do for you. If you are a thrill seaker and can handle this unusual drop in the market stay the course and hope for the best. It is not a great feeling watch tens of thousands of dollars disappear in a few months. How long will it take to get it back......probably years.

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