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Hoaxes, Rumors and the TSP: Are the Losses in Your TSP I Fund The Fault of A Scoundrel?

TSP Mismanagement and fraud

Retired
USPS
Thu Mar 12, 2009 10:25 AM

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None of it would surprise me. But I believe that it has always been mismanagement because it is government. I have lost over 40% of my assets and have no way of recouping any of it. Especially since Obama said he doesn't care about the stock market. Seems he has never known that most Americans are deep into market investments, especially for retirement.

Elections do have consequences. I wish I had never put any money into the so called "Thrift Investment". The name alone is an oxy-moron.

Re: TSP Mismanagement and fraud

Analyst
dod
Thu Mar 12, 2009 5:45 PM
Retired, the TSP is based on an indexed approach. Therefore the concept of losses due to mismanagement doesn't make sense. The funds go up or down based on market indexes, there is no active management of the funds.

There are many indexed stock mutual funds, of the ones based on the same market indexes that the TSP funds are.. ALL of them lost a great deal. You lost money because the market lost money.

unbelievable foolishness

employee
FED GOVT
Thu Mar 12, 2009 11:24 AM

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If folks give any credence to this rumor then they do not understand the TSP and should be putting their money in the mattress...

Of course we are all going to recoup are losses over the next couple of years and will be wiser investors as a result.

It took the market 18 mos to hit rock bottom, so it will take at least as long to recoup...

Also, the stock market will correct itself with or without FED help.

Sooo, if you are not - get into the market and start or keep buying all these undervalued stocks and funds.

Re: unbelievable foolishness

LER Specialist
DHS
Thu Mar 12, 2009 1:26 PM
I certainly hope you are right but what is being reproted in the medi from so-called economic experts is that it may take as much as 4-5 years for the market to recoup even half of what has been lost. For me that would mean that 4-5 years my TSP fund would only be worth 75% of what it was worth in January of 2008. No matter how you look at it, my retirment fund is going to be far les than what I was expecting it to be.

Re: unbelievable foolishness

Diversity Manager
DOL
Thu Mar 12, 2009 5:06 PM
Look BO has sucked up all the liquid cash in the economy and cash in the mattress is his next target

Scoundrel

ASI
FAA
Fri Mar 13, 2009 8:09 AM

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There are many "scoundrels" in this whole TSP program.
The government is not very good at trying to educate its employees about the benefits programs that they offer.

I have been in the stock market and mutual funds for many years, yet was not aware of the index funds philosophy in the TSP. Furthermore, an index fund may or may not have more volatility than. let's say, the S & P index fund.

I am not aware of any prospectuses that were sent to me over the several years that I have been with the agency.

I also am aware that it was my choice to "gamble" with my future.

Does anyone else feel the same way that I do?

Re: Scoundrel

Attorney
DOD
Sat Mar 14, 2009 11:06 AM
Good grief. TSP sends out articles about all the funds and what they are based on. Too many people just throw the pamphlets away and blame someone else for not getting a good education. Of course some of the TSP funds are more volatile than others but that is also explained in the pamphlets. Next they do not send out any prospectuses but a "prospectus" on the underlying index fund is available from numerous sources. Last if you wanted to "minimize your losses" you can invest in the G fund. By minimize I mean that the G fund may not fully fund your retirment when inflation kicks in and FERS employees of course get a diet COLA.

Re: unbelievable foolishness

employee
FED GOVT
Fri Mar 13, 2009 10:12 AM

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"No matter how you look at it, my retirment fund is going to be far les than what I was expecting it to be."
I wil not disagree w/you about that LER Specialist.

retirement planning

TSO
DHS/TSA
Sat Mar 14, 2009 9:44 AM

Post Reply

From my past experience (i'm 60) as with any TSP IMHO key is "dollar averaging" or having set/fixed investment amount each pay period designated to mutual fund(s) w/low expense ratios (cost to investor)- eg. international, us index funds etc.

Financial investment folks tell me that rule of thumb (conservative) is to have about 60% in stock/equity funds/40% in bond funds as you near retirement.

Re-balance portfolio every year as bond/stock market segments fluctuate to keep the 60/40 ratio or whatever ration you prefer. That is have greater proportion stock to bond ratio when you are younger as you have more time to catch up from down market cycles

Over time your periodic investment buys more when market down, less when up, but over time "averages out". I believe over long term market has averaged 10 % return - but that's over longterm and you need to keep investing when market is down. all depends on your time horizon. never put all ur eggs in one "fund basket

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