Readers' Comments
Total Comments: 8
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Is There Room for the I Fund In Your TSP?
Total Comments: 8
Page 1 of 1
Page 1 of 1
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| Close | Change | YTD | |
| G | $13.2079 | +0.0011 | +0.67% |
| F | $13.6308 | +0.0274 | +2.22% |
| C | $13.8058 | +0.1068 | +4.45% |
| S | $18.0739 | +0.1686 | +9.80% |
| I | $18.6668 | +0.3097 | +0.70% |
| Close | Change | YTD | |
| L 2040 | $16.2492 | +0.1426 | +3.93% |
| L 2030 | $16.0026 | +0.1229 | +3.51% |
| L 2020 | $15.7699 | +0.1011 | +2.94% |
| L 2010 | $15.4687 | +0.0398 | +1.63% |
| L Income | $14.0922 | +0.0316 | +1.53% |
March 16, 2010
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I Fund
Department of the Army
Fri Dec 16, 2005 9:00 AM
Post Reply
Why would I limit myself to just American funds when most of the stuff that American companies sell either is made overseas or parts of it are. However I can get the best return for my hard earned dollar is what I'm going to do, because no one is going to hand it to me. If taxes weren't so high that might make me reconsider, but since they are, I have to make up the difference somehow.
no emerging markets in I fund
Homeland Security
Fri Dec 16, 2005 9:22 AM
Post Reply
The point should be made that the I fund consists of the Europe, Austraia, and Far East Index (EAFE), and only consists of very large companies in the industrialized and very developed European countries, Japan, and New Zealand. These are the larger S&P-like companies of these countries. If the I fund marketing and reporting of the I fund consistenly emphasized these characteristics, and made sure TSP investors understood that small undercapitalized companies are excluded from the I fund, not to mention that no African, Latin America, etc. countries are represented in the I fund, perhaps more people would be inclined to diversify. As it stands now, the word "International" is often the only indication of the makeup of the I fund, and that scares TSP investors because of the implication that any foreign companies and any non-US country may find its way into the I fund.
Why, oh why?
FS
Fri Dec 16, 2005 9:53 AM
Post Reply
My only problem with the I fund is that, based on some of the problems identified in the article, I didn't get into it for several years after it became available. It has been a steady growth investment for me!
New paradigm
OCC
Fri Dec 16, 2005 10:41 AM
Post Reply
So millions of US jobs are being exported overseas to take advantage of cheap labor, putting more American's out of work. A simple Capitalistic solution...take advantage of the situation by sending your money overseas and invest in stocks in those countries. Ralph, call me old fashioned but as a government employee of this country, I still believe I have an obligation to invest in this country. When my paycheck processor (which is currently in New Orleans having just recovered their operating ability after Katrina) gets outsourced to India or China I might feel differently but for right now I'm keeping my money in the U.S. of A. Thanks for the tip on the "I" fund...but I will pass!
Bigger picture - diversification
DOD
Fri Dec 16, 2005 11:46 AM
Post Reply
One point that isn’t being emphasized enough here is the diversification value of including foreign stocks in your asset allocation. Domestic and foreign stocks can (and often do) go up and down differently at any given point in time. By diversifying into all three stock funds (C,S and I) you will protect yourself if one isn’t doing well as expected. Conversely, when one is doing better than expected you can take advantage of that if some of your money is there.
The overall risk of your TSP portfolio can be reduced by investing the stock portion of your TSP into all three (C,S and I) as opposed to just C and S.
Additional Choices
RDECOM
Mon Dec 19, 2005 6:12 AM
Post Reply
While the I fund is useful, to a certain extent, to balance the TSP portfolio, I think that younger investors should be given more access to emerging markets and international small caps.
While Congress is obsessed with adding a REIT at the top of a bubble, they miss obvious expansions to the global markets.
Re: Additional Choices
DOD
Mon Dec 19, 2005 7:30 AM
CSI does not mean Crime Scene Investigator
DoD
Thu Jan 26, 2006 8:38 AM
Post Reply
I retired from the Fed last year and had my TSP spread across the CSI funds and have done very well since retirement. I obtained private sector employment and have not had to 'cash in' my TSP for a retirement annuity yet. I won't do that until I quit my current job, but it's been amazing to see how my funds have increased generally. I have more in the I fund with less in the C and S funds but I have a pretty good balance and have done well this year. I watch the markets every day but don't look at the details of my fund but once a week. I am less nervous that way but I am very happy with the way the TSP funds are responding to the overall market conditions. My funds have grown more than I ever thought they would when I started years ago. If you know a younger someone who is a FERS employee and NOT into the full amount into TSP, convince them to do so, especially if they have years to work. It's very well worth it.