software enginerr NAVAIR Tue Jul 22, 2008 10:22 AM
Unnecessarily broad (possibly under-broad?) painting. I will have multiple sources of retirement income providing me with adequate base living pay. This leaves me to be more free in my risk, and I plan to be heavily invested in my TSP in the stock markets up to retirement, and plan to continue to have that money reinvested in stocks after retirement.
Someone who will be carrying a mortgage (and possibly other debt) into retirement, have a work-at-home wife (therefore not contributing to the retirement income mix) and/or living in a high-cost area would probably be better advised to use a more life-cycle style plan of retirement invetsment. Or, if you're just risk-adverse by nature, then a life-cycle style would probably be advised.
I Fund
Economist SSA Tue Jul 22, 2008 7:12 PM
The I Fund will be the best performer going forward because the dollar will continue to fall due our massive trade imbalance and our leaders' inflationary practices.
Title should read best allocation, not best fund
analyst DoD Tue Jul 22, 2008 9:22 PM
The danger in debating the best fund is that the importance of a properly diversified allocation is ignored. If we focus on just the best fund there will be a temptation for some to put all their money in that one fund (note - this doesn't apply to lifecycle funds since they're already diversified).
Putting all your money in one of the basic funds (C,S,I,G,F) is a dangerous strategy, you never know when the "best" fund it going to tank (and they all do eventually).
L Funds and financial literacy
Former Finance Manager/Controller Us Postal Service/Now Retired Wed Jul 23, 2008 10:11 AM
One of the problems with the lifecycle funds is that people have not understood the concept. I give financial seminars to federal employees and many of them are using the lifecycle funds, but only on a partial level. This defeats the concept. All agencies of the federal government(including the Postal Service) need to actively step up their training in the financial literacy arena. Employees are woefully undereducated as to how to invest their money. As the % of FERS employees steadily increases, the importance of the Thrift plan for federal employees increases. Education in the form of seminars is the best way to help increase financial literacy.
Re: L Funds and financial literacy
Analyst DOD Mon Aug 4, 2008 9:58 AM
Training, you had training??? We had none and there is none in the furture to be had. Nice to be you.
Best TSP Fund for the Long Haul?
Electronic Technician BOP Wed Jul 23, 2008 10:28 AM
I have my investments in several Lifecycle funds. I retire in 2014 since that is in the middle of 2010 and 2020 I have account in a mix of both of them. Ten years is to much of a gap for the L funds.
Investment Strategies
Contracting Energy Wed Jul 30, 2008 8:37 AM
What is the best tsp for the short haul?
If the market is taking a downward spiral should you maintain your investment or quickly change?
Cyclical
Fed Worker DOD Thu Jul 31, 2008 12:15 PM
While I don't count the U.S. out ever, I have to agree with "Economist" that the "I" fund is the place to be. Many people feel the G-Fund is safe and if you are close to retiring and are risk adverse I would go there. Just think about putting some new contributions in the "I" fund as "Play" money. A small amount perhaps, and when it gets high sell transfer it to the "G" fund, and start all over. My Mother did this and kept her money safe, while knowing that she could play the market without losing a lot of sleep. If the dollar gets any weaker we will be a third world country sooner than later.
TSP Investing
In-Service Engineer NAVAIR TSD Fri Aug 1, 2008 8:38 AM
Lots of folks seem to panic during downtimes. This comes from not understanding the history of the markets. What goes up must come down. However, the markets will go up again (long-term investing). I’ve made some bad decisions during the learning process, but will refrain from panic moves again. My strategy is buy and hold! In fact, during downtimes, I can buy at much cheaper prices. Although risky, most of my TSP holdings are in I, but I have time on my hands (late 30’s). Future contributions are distributed to ¼ L target date fund and manage the other individual funds myself based on economic indicators. I now only change future contributions, not interfund transfers. Personally, I believe the future will be in international holdings due to the global expansion of US businesses and developing foreign countries. The world is becoming flat. However, I also believe the worst strategy is to put all of the eggs in the same basket. For who may need their savings in the short-term, having a large % in stocks is just too risky. We never know if that will be the time the market’s plunge. I plan to move most of my savings to L Income or G within 3 years of retirement.
Best for one is not necessarily best for all
NAVAIR
Tue Jul 22, 2008 10:22 AM
Unnecessarily broad (possibly under-broad?) painting. I will have multiple sources of retirement income providing me with adequate base living pay. This leaves me to be more free in my risk, and I plan to be heavily invested in my TSP in the stock markets up to retirement, and plan to continue to have that money reinvested in stocks after retirement.
Someone who will be carrying a mortgage (and possibly other debt) into retirement, have a work-at-home wife (therefore not contributing to the retirement income mix) and/or living in a high-cost area would probably be better advised to use a more life-cycle style plan of retirement invetsment. Or, if you're just risk-adverse by nature, then a life-cycle style would probably be advised.
I Fund
SSA
Tue Jul 22, 2008 7:12 PM
The I Fund will be the best performer going forward because the dollar will continue to fall due our massive trade imbalance and our leaders' inflationary practices.
Title should read best allocation, not best fund
DoD
Tue Jul 22, 2008 9:22 PM
The danger in debating the best fund is that the importance of a properly diversified allocation is ignored. If we focus on just the best fund there will be a temptation for some to put all their money in that one fund (note - this doesn't apply to lifecycle funds since they're already diversified).
Putting all your money in one of the basic funds (C,S,I,G,F) is a dangerous strategy, you never know when the "best" fund it going to tank (and they all do eventually).
L Funds and financial literacy
Us Postal Service/Now Retired
Wed Jul 23, 2008 10:11 AM
One of the problems with the lifecycle funds is that people have not understood the concept. I give financial seminars to federal employees and many of them are using the lifecycle funds, but only on a partial level. This defeats the concept. All agencies of the federal government(including the Postal Service) need to actively step up their training in the financial literacy arena. Employees are woefully undereducated as to how to invest their money. As the % of FERS employees steadily increases, the importance of the Thrift plan for federal employees increases. Education in the form of seminars is the best way to help increase financial literacy.
Re: L Funds and financial literacy
DOD
Mon Aug 4, 2008 9:58 AM
Best TSP Fund for the Long Haul?
BOP
Wed Jul 23, 2008 10:28 AM
I have my investments in several Lifecycle funds. I retire in 2014 since that is in the middle of 2010 and 2020 I have account in a mix of both of them. Ten years is to much of a gap for the L funds.
Investment Strategies
Energy
Wed Jul 30, 2008 8:37 AM
What is the best tsp for the short haul?
If the market is taking a downward spiral should you maintain your investment or quickly change?
Cyclical
DOD
Thu Jul 31, 2008 12:15 PM
While I don't count the U.S. out ever, I have to agree with "Economist" that the "I" fund is the place to be. Many people feel the G-Fund is safe and if you are close to retiring and are risk adverse I would go there. Just think about putting some new contributions in the "I" fund as "Play" money. A small amount perhaps, and when it gets high sell transfer it to the "G" fund, and start all over. My Mother did this and kept her money safe, while knowing that she could play the market without losing a lot of sleep. If the dollar gets any weaker we will be a third world country sooner than later.
TSP Investing
NAVAIR TSD
Fri Aug 1, 2008 8:38 AM
Lots of folks seem to panic during downtimes. This comes from not understanding the history of the markets. What goes up must come down. However, the markets will go up again (long-term investing). I’ve made some bad decisions during the learning process, but will refrain from panic moves again. My strategy is buy and hold! In fact, during downtimes, I can buy at much cheaper prices. Although risky, most of my TSP holdings are in I, but I have time on my hands (late 30’s). Future contributions are distributed to ¼ L target date fund and manage the other individual funds myself based on economic indicators. I now only change future contributions, not interfund transfers. Personally, I believe the future will be in international holdings due to the global expansion of US businesses and developing foreign countries. The world is becoming flat. However, I also believe the worst strategy is to put all of the eggs in the same basket. For who may need their savings in the short-term, having a large % in stocks is just too risky. We never know if that will be the time the market’s plunge. I plan to move most of my savings to L Income or G within 3 years of retirement.