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How Have Thrift Savings Plan Investors Reacted During Recent Stock Market Fluctuations?

Yes

Beach Bum
Retired DoD
Thu May 21, 2009 9:07 AM

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like other investors we want to protect our money rather than listening to writers who tell us we are doing the wrong thing.


I wonder if the Board wonders how much in savings we could have retained if we had more than two trades a month. Oh wait, they are really worried about things like mandatory enrollment, not the preservation of our retirement funds.

Re: Yes

IT Specialist
HHS
Thu May 21, 2009 9:32 AM
The why are you reading this article then if you don't want to listen to writers?

Honestly if you had a million trades a month that is not going to help you increase the size of your retirement portfolio.

Have a plan.
Follow the plan.
Prosper.

Buy and Hold brother.

Re: Yes

worker
Fed
Thu May 21, 2009 9:41 AM
It costs money to make your trades. Why should the investors who invest and hold have to subsidize your trading desires? If you want to actively trade, do it outside of a retirement account. That way you pay for your activity. 2 actions per month is enough for a retirement account.
Many people are saying this is a bull in a bear market. That is, the market has or will go up, but the gains will be returned and possibly more. I do not say yeas or know. All I know is that a retirement account should not be active. It should be a long term regular contribution account. If one want s to transfer from one account to another account (C to G or vice versa) it should be for the longer term and not just to catch the wave.

Re: Yes

IT Specialist
IRS
Thu May 21, 2009 10:22 AM
I agree with the trading limits because the TSP isn't designed to handle that real time trades. Beach Bum, if you're so concerned about trading limits, then do what other investors do -- move your money to a mutual fund family &/or stocks and trade to your hearts desire. You're retire so you can do this, so what's the problem here?

Re: Yes

Nameless, Faceless Nobody
DON
Thu May 21, 2009 10:59 AM
Move your investments to Schwab, then. you will then clearly see that you are prospering or not based on your frequent trading.

Incidentally, I left my Schwab IRA alone, lost some, but bought more...

An example, I bought a certain share at $20. It dropped to $5. I bought an equal amt at $5. It dropped a little more but now is hovering around $8-$9. Once it goes over $12.5 I am back into positive growth.

This has been repeated with all my stocks but one...and I think it will go up eventually as well.

Do the math and stop whining about trade limits. You can put it all back into the protection of "G" funds at anytime without regard to the limit on trades.

Re: Yes

Just passing by
USAF
Thu May 21, 2009 6:28 PM
It is because Beach Bum wants the best of both worlds - extremely low fees on his account ( as in the TSP ) and the ability to move his money everyday as he sits glued to the computer screen watching the market. I agree - take your money out of the TSP - or at least a portion of it - and become a day trader. Then compare the TSP and day trading returns on your investments. Tell us how that works for you ...

Good Article - Tactful

Program Manager
USDA
Thu May 21, 2009 9:44 AM

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Good write. However, one doesn't have to be a rocket scientist to figure out that in each instance where the skiddish investor panicked after a downturn and moved to G, the investor actually "locked in" loss. In other words, they sold shares that had been purchased at a higher rate previously for G shares. After the market recovered, the now not so skiddish investor returned and bought the C share, at now a higher rate than they had previously sold it; thereby further locking in additional loss.

Stay the course. Buy low, sell high. Always. But do all of this to no avail because by the time Obama is done with all of us, those few of us with any money will be taxed out of existence anyway. And cars, either pieces of garbage manfactured by Obama motors (which builds nothing by the way) or some sorry foreign car will be our only choice.

Cheer up. it could be worse?

Re: Good Article - Tactful

IT Specialist
IRS
Thu May 21, 2009 10:26 AM
Maybe you should take your own advise -- Cheer up! lol. The man is investing in America's future; He's taking on problems that didn't originate on his watch; and, trying to repair our image around the world. I'm not a big supporter of the B-man, but he's taking on challenges that many other presidents from both parties refuse to take.

Re: Good Article - Tactful

Analyst
GSA
Thu May 21, 2009 11:32 AM
Maybe the guy from IRS views Obama's takings (taxes) from some and givings (socialized medicene and "free health care" to some and his paying cronies at GE) as investments. I tend to believe that the government is not as good an investor and the private sector. Since the government cannot create anything, but can print money, which Obama is doing at a fast rate, maybe the IRS fellow can explain what exactly Obama is investing in that will save us all from us all.

Re: Good Article - Tactful

Just passing by
USAF
Thu May 21, 2009 6:22 PM
One thing Obama is doing something about is this country's addiction to oil, by setting higher emmisions standards. Previous presidents ( notably "W" ) stated that America was addicted to oil, but did nothing to solve the problem. As far as other investments, the money loaned to corporations ( notably banks ) has saved the economy from a fate much worse than we are seeing now. And these funds are reportedly going to be re-paid by year end. At the same time, these loans are earning a decent rate of return ( compared to the rest of the markets ) So if reducing this country's oil dependence and saving institutions that are a mainstay to our economic picture is not investing in our future, please let me know what is ... so cheer up and stop all the hating. As Government employees, we have it so much better than the vast majority of other Americans.
And by the way, you can make more than 2 TSP transfers each month - after the first 2, you can always move money into the G fund.

Re: Good Article - Tactful

Unhigh on the Food Chain
VA
Tue Aug 4, 2009 11:34 AM
I still believe it is better to recover what you can and move on, whether it is a loss or not. I think of those who rode the tide down to nothing and now without a job, they also have nothing to lean on. At least, had they moved the money when they could, something would be available. You can't win them all.

But did you also consider...

Av Specialist
FAA
Thu May 21, 2009 9:46 AM

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whether the money going into the G fund is new deposits or internal transfers from other funds? Last year I changed my allocation so that more went into the G fund from my salary allocation but did not move money out of the stock funds. At the beginning of 2009 I recalibrated my percentages and then changed my salary allocation so that it is more evenly distributed among the funds, anticipating that the market would rise. Has this type of behavior been taken into account?

Thank you short sighted investors

ACF Specialist
DHHS
Thu May 21, 2009 10:16 AM

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I have continued adding to the C, S, & I during this downturn. Not only did the market go down, but with people moving money out of these funds it caused the funds to artifically drop more due to short sighted investors. The shares I already own have temporarily gone down. Some of the shares I have bought in the down turn have been purchased at nearly 2 to 1. This is actually lowering my overall purchase price on all shares. The market will return. It may take some time. Thats o.k., I have time. Even if I didn't have time I don't hold all my eggs in one basket. I truly think the people who are freaking out have either put all eggs in one basket, or they have failed to adequately prepare for their future retirement.

So, for the short sighted investor I would like to say thank you. When the market returns and you can't stand it and you buy the C, S, & or the I fund the loss you locked in will be my gain locked in. Thank you.

Re: Thank you short sighted investors

IT Specialist
IRS
Thu May 21, 2009 10:29 AM
yeap, I agree. I love it when the market goes down. When everyone else is selling equities, I'm buying baby. It aint nothing but a g-thing baby. lol

The article forgot to mention

Engineer
EPA
Thu May 21, 2009 2:02 PM

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The bad news is although TSP investors have the opportunity to "make their own decisions" those decisions have been severly limited in number due to the recent rules changes put in place. In times of volitility (like now) inability to move assets no more than twice a month is a handicap. Increasing investor's trading capacity by just one more trade would increase one's mothly ability to adjust to market conditions as much as 33%. That's valuable in the eyes of those who watch their nest egg. Thanks

What every drug dealer knows

Federal Career Intern
HUD
Thu May 21, 2009 8:27 PM

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Buy low, sell high. It is really that simple.
Every drug dealer on the street knows that principle but it seems highly educated people in the stockmarket do not. Go figure.

Bought into G fund when the market was unstable and bought when it stablized low. Sold at a modest peak. Made money to fund my retirement. Will look for the next low and do the same.

Lunch Hour econmics and retirement planning 101.

Regards!

trade frequency

Operations Specialist
CBP
Fri May 22, 2009 8:08 AM

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To say that it costs money to make trades, therefore they must be limited, is simply ignorant. To ascertain the impact of trading you must net out all movements among the various investment choices. At the end of the day, that single amount per choice should be reflected in the total TSP books, within variances allowed for processing. So, for the board to limit trades is a bunch of hooey. It's all settled by the computer. Also, not being able to place an order at the market close is also an ignorant way to run the TSP. Look at all the other major operations, such as Fidelity, that are able to manage just fine by settling the various funds at the market close. Lets face it, the TSP is just not up to the challanges of todays fast moving markets. Sadly, we must retire before we can move the money into more competitive environments.

Re: trade frequency

Engineer
BOR
Tue Jun 2, 2009 9:01 AM
Operations Specialist,

I am not opposed to you or anyone else trading as much as often as you want to, but PAY for your folley yourself. Do NOT expect everyone else to pay for your wanting to trade as much as possible. This is a retirement fund SON and not your play toy.
Total Comments: 19
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