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Back to the Future For Your TSP Funds

Buy Buy Buy

Human Resources Specialist
Air Force
Fri Nov 21, 2008 8:41 AM

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Regardles whether the market goes down further, now is the time to jump back in if you are investing for the long term (5+ years). You are guaranteed to make money, considering any 5 year period in market history, and especially considering any 10 year period in market history.

Re: Buy Buy Buy

Accountant, Retired, GS 14
DOE, Albuquerque
Fri Nov 21, 2008 10:12 AM
You are not guanteed to make money in a 5 year period or 10 year when you account for inflation. When inflation is accounted for, the S&P is back to 1996 levels. 12 years. Also over a 15, and 20 year period you would have made more in 30 year bonds. Generalizations are general izations. The US economy is mature and will only grow very slowly and so will the stock market. In the long run the market can't go up more than the economy

Investing in stocks

Purchasing Agent
Forest Service
Fri Nov 21, 2008 9:30 AM

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Only a fool invests their retirement in the stock market. Paying off your house and other debts is a better investment.

Re: Investing in stocks

richdor
US Postal Service
Fri Nov 21, 2008 10:34 AM
What century are you living in? The market is cyclical. It goes up and it goes down. You have to pay attention to it and the economic environment not just here but around the world. Am I a fool because I invested in the C,S, and I funds and doubled my portfolio in 2003-2007? I knew that the melt down here in the US over the bad loans and mortgage crisis would create a tidal wave of lost capital so I pulled the plug and went for safety in May. Please educate yourself about the market and investments. There is so much opportunity right now to purchase stocks at bargain prices. This is the time to make money!

Re: Investing in stocks

Accountant, Retired, GS 14
DOE, Albuquerque
Fri Nov 21, 2008 10:55 AM
After inflation houses appreciate 2% a year on average. How do you get equity out of your house without paying huge fees and interest rates. Reverse motgages are expensive. A home is a home and not an investment as many people have found out. Stocks return about 5 percent after inflation over the long run (40 years) and bonds 3% after inflation. Real estate is a mediocre investment in the long run. It just seems to be a lot if you finance 95,90 or 80% of the cost. After payning interest the real rate of return on real estate is negative

Back to the Future?

Civil Engineer
USACE
Fri Nov 21, 2008 9:41 AM

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Back to the Future? It’s because the FTRIB has been lying to you about the true costs of IFT’s and their stupid guidance.

Did anyone take the time to read the FTRIB Sept Minutes? No of course not, because if you did, then you would realize they are lying to you!

In them, Mr. Long stated “ Even though interfund transfers have decreased this year, the decrease has not led to significant savings in processing costs because most interfund transfers are implemented via the web and does not require manual intervention”

Of course we use the web and we tried to explain that reducing the IFT’s would not lower costs, but so many of you just blindly followed Smitty, anf the FTRIB, who are being controlled by Barclays. Haven’t you seen the news on Barclays needing money. It’s because they have been gambling with ours.

Even though they imposed limits on trading- for the reason that "It will save money", it has proven to be false a LIE!. No money was saved, excepr maybe for barclay. But I bet if you look at your funds, you have lost a lot of money due to these limited IFT’s. Buy and Hold is dead, CNBC even did a show on it. Well as usual Smitty is still drinking the FTRIB/Barclays Kool-aid. And the imposition limited IFT’s has also CAUSED costs to rise, and you are drinking the Kool-aid also.

Another highlight- the Board plans to spend millions on postage, on redesigning the website, and keeping the TSP website separate from the FRTIB website. I thought you would appreciate that. At a time where 99% of us are all in the internet- it is more important to them to spend millions on DVDs and postage, rather than making the film available on the net, and saving millions. At a time when the took our trading ability away, so they could save money, which, by the way, it does not.

Think about it. It’s all in the minutes, but Long and his band of thugs don’t expect you to take the time or interest to read the minutes, so they have a free hand to do as they wish with YOUR money.

I’m saddened by the lack of interest taken by fellow feds. We all have the same interest at heart and that is to increase our retirement money. Smitty, the FTRIB and Barclays aren’t even Federal employees, so they have no vested interest in what’s best for us.

Their Buy and Hold Strategy is only going to cause us to work longer, because if you B&H in this market environment, you are getting killed and will have to work years to get your losses back. Educate yourself on how the market works, cause our Board sure doesn’t have the faintest idea how it works.

This reduction in our retirement funds 50% max could’ve been easily avoided, if the board knew what they were doing.

An Engineer

Re: Back to the Future?

IT Project Manager
State
Fri Nov 21, 2008 12:06 PM
I agree that "buy and hold" should be taken with a grain of salt. I don't agree on the comments regarding the cost of trading limits. I have an IRA I started before taking part in the TSP and the cost of moving funds around is substanital and I rarely do it. Transfers in the IRA are not only not free, but have significant costs.

I moved my TSP out of stocks and into G and F last January - a move that was more lucky than smart. That move has saved me from most of the 2008 losses and I only needed one move to do it, not the 20 free moves I could have made since January under current rules. You don't need the ability to perform constant transfer gyrations to intelligently manage your funds.

Re: Back to the Future?

Not The Smartest Guy In The Room
Military
Sat Nov 22, 2008 12:42 AM
Buy and hold is far from dead and one does not need to sit behind a desk every day, trading his/her TSP Funds daily, to get ahead in this market.

Like the other commenter, I put myself %100 into the G Fund last January because it obviously(!) wasn't going to be a profitable year anywhere else. In one trade I avoided the %50-ish losses (so far) this year, how is that not getting ahead?

Can't wait till this thing hits bottom so I can buy back into the C, S and I Funds and really get ahead.

FERS

Fed Employee
DHS
Fri Nov 21, 2008 10:06 AM

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I suspect that all the people who transferred from CSRS to FERS (i.e. bought OPM's pitch that FERS would result in a better retirement) are having a fit.

I was automatically moved to FERS in 1987 (less than 5 years service) and wasn't happy about it then...now I am really unhappy.

The current TSP issue does end all discussion of a retirement tsunami.

And then if social security doesn't pan out....

A one legged stool (FERS) instead of the three (FERS/TSP/FICA) that we were expecting.

Will anyone under FERS ever be able to retire comfortably? Who knows.

Re: FERS

Accountant, Retired, GS 14
DOE, Albuquerque
Fri Nov 21, 2008 10:24 AM
thank god less than 1% switched. If I did, i would still be working. lol

Re: FERS

analyst
government
Fri Nov 21, 2008 11:02 AM
I don't understand why you want to throw out the baby with the bathwater! Unlike traditional 401K's in private industry, TSP contributors can move their money to the G fund at any time and suffer no losses. Stop whining and become more educated!!!

Re: FERS

Smuck
Air Force
Fri Nov 21, 2008 2:08 PM
No, I won't be able to retire under FERS. Being on the tail end of the baby boomers, I never thought I would be able to. This just confirms it.

My bigest mistake was trying out the L fund in Nov 2007. It's just headed south ever since. The worst part is the daily rebalancing just inserts more money into the market to be lost.

So, what do you do. Work till you drop, I guess, and hope that your health holds out till then.

Re: FERS

AUSA
DOJ
Fri Nov 21, 2008 2:27 PM
Any chance we could all be put into CSRS? Would Congress ever think that FERS Feds need a larger defined benefits retirement package- greater than the mere 1% per year of the high three average retirement annuity (plus CPI minus 1% per year when inflation reaches 3% or more). Is this even possible? Or are most Americans so badly off that such a benefits plus-up for FERS is simply not possible. Any thoughts?

More Financial Trouble Ahead

scientist
bor
Fri Nov 21, 2008 10:28 AM

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The credit cards haven't collapsed yet... all unsecured loans. Many people are living on their credit cards. Unemployment and the deflation that is occurring in the current economy will put many more people into financial straits and the credit card companies will not be able to squeeze blood out of the turnips.

Buying stocks in the TSP

CONTACT SUPERVISOR
IRS
Fri Nov 21, 2008 10:32 AM

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I read where you state that we should buy while the stocks are low. I have 10 tens before retirement and have left my funds in the 2020 l fund, with about 3% in the 2040 L fund. In general terms how would I go about doing that?

Bail out

Accountant
Air force
Fri Nov 21, 2008 10:41 AM

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Public is waiting for congress to enact the Birk Plan which helps the consumers not the businesses up front.
Businesses and mortgage companies can profit from this plan and it also stimulates the consumers better than the peanuts congress and the President has been throwing at them.

Total Comments: 39
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