Sounds like it's just time to dump all my TSP money into the I fund
Re: Time to Buy
Analsyt DOD Thu Sep 18, 2008 9:08 AM
That might not be such a good idea either, the I fund is down 27.89%
Re: Time to Buy
RMRF DOE Thu Sep 18, 2008 9:10 AM
I was thinking C or S, but the I fund takes some really big cahonas. Happy Retirement!
Re: Time to Buy
Nate 32 DOJ Thu Sep 18, 2008 10:37 AM
Not too smart
The I fund will be -80% a year from now so why not buy then.. mean time transfer into G
Re: Time to Buy
IT Specialist HHS Thu Sep 18, 2008 1:18 PM
How do you know the I fund will be -80%?
It’s silly to worry about what the value of your funds are today. I will not touching the money in my TSP for another 30 years. I'm only concerned with the value of what it will be then. The stock market over 10 year periods have always produced positive returns, even with the big dips. This is the nature of financial markets if you can’t take the heat you should be 100% in the G fund all the time.
If you were retiring in the next couple of years, yes I would be concerned with these large drops, but that's also poor planning on the retirees' part.
Re: Time to Buy
PERSEC Army Fri Sep 19, 2008 2:21 AM
I've got 5 years in Service, a GG-12 and 30 years and 3 weeks left until my minimum retirement age.
I'm putting 15% into TSP currently. As soon as the I fund reached about ~18% down I started dumping money into it.
It's going to go up eventually, and I will make some nice, nice profits.
Re: Time to Buy
Electronics Engineer FCC Wed Oct 1, 2008 7:49 AM
No it is too soon. The I fund trend is still down. Wait until it starts up again, then buy into it. Point 2: Being near retirement simply means you have less time to work longer than you intended to try to make up a big loss. But losses are just as serious when you have 30 years to go. Don't think that because retirement is a long way away you don't have to try to avoid big losses. That is bad advice.
Financial meltdown on Wall Street
Program Manager GSA Thu Sep 18, 2008 8:45 AM
I have argued for years that competency matters. Hopefully people will start to listen now that incompetency has gotten us into this situation. We need to rebuild all of our institutions starting with the educational and moral values systems. We need to get people to think about America as a nation, a society and and a culture. People (especially politicans) need to start acting for the good of the nation, not their own narrow special interest. Everything from Government to Finance is broken and needs to be corrected.
park your money now
Nate 32 DOJ Thu Sep 18, 2008 8:57 AM
Again, the US economy is in shambles. Yes, I cannot forsee the future and tell you when to buy back but FOR SURE things are only going to get worse and remain stagnant for quite some time so SELL and PARK your money people.
Tranferring Funds to F and G
Chief Security DOD Thu Sep 18, 2008 9:13 AM
I commented last month about how stupid it is to leave your hard earned money allocated to all 5 funds when the sky is falling. Even financial planners are saying. "this has never happened before." So if it has never happened why are millions of people, losing their shirts only to be told, hey its all about risk, buy when it is low. Yes, thats smart advice, but not if you have lost 20-50 thousand dollars waiting for the market to return. I cannot see the future but 6 months ago, living in CA and in real estate saw that what was going on was completely irresponsible and the big financial companies had it coming to them. When there is no accountability we are humans, we take advantage; add a little or should I say alot of greed and you have a bad mix. Unfortunately it is the little guy that eventually pays the bill. Though it is not to late to take your money out, it probably is better late than never but as in all personal choices, I decided over 6 month ago and saved myself grief.
CPI
Engineer FAA Thu Sep 18, 2008 9:21 AM
How can the CPI go down >5 in August 08 and the CPI for the year only decline from 6.2 to 6 for the year
annuity for retirees
Progrsm Support Assistant SBA Thu Sep 18, 2008 10:22 AM
If a retirees puchased an annuity for a now bankruptied company, what happens to the annuity plan and future pay outs?
Re: annuity for retirees
Diversity Manager DOL Fri Sep 19, 2008 3:36 PM
You'll get a hardy handclasp pat on the back and told you'll need to find employment if you want to pay your bills
while employed, count number of shares ....
IT Specialist US EPA Thu Sep 18, 2008 10:23 AM
Since I'm still employed and have a long ways to go until retirement, I am keeping track of the number of shares added to my TSP each pay period. That eases the pain of a falling market since I know I'm buying 'cheap.' When I can buy cheap, I get more shares each pay period.
I don't think of the dollar amount of my TSP as having much value since it's meaningless until I cash out.
Re: while employed, count number of shares ....
(M)Sgt Air Force Thu Sep 18, 2008 12:58 PM
I completely agree. I imagine that the millions that are reported to be transfered to the G Fund is primarily retirees cutting their losses. I hate to say it, but the lower the I fund goes the better it is for my distant retirement future. I feel as there is low odds that International stocks are are going belly up.
Re: while employed, count number of shares ....
Supervisory IT Specialist DON Mon Sep 22, 2008 7:27 AM
They are not "cutting their losses" they are LOCKING in their losses by buying High and selling Low.
This is exactly the opposite of what we all should be doing.
Re: while employed, count number of shares ....
Retired Air Force U.S. Navy Wed Sep 24, 2008 3:59 AM
You are on the right track.
Unregulated Investment Banks
Examiner INS (now DHS) Thu Sep 18, 2008 10:24 AM
Several things piqued my curiosity about this, one of them being a report here that a majority of us federal workers favor McCain's economic promises over the un-tested Obama's. That struck me as unlikely because we've always done better under Democrat presidents.
Besides, it's hard to sort out campaign promises from fiscal plausibility -- what a candidate promises and what he says that is actually do-able. Here's what I discovered about McCain.
(1) the earmarks he insists he will veto have been much less than 1% of the total federal expenditures. This came as a surprise. It's still a lot of money that should be saved.
(2) the perpetrators McCain says he will publically humiliate include the Department of the Army, which often inserts requests for additional funds for unexpected expenses. (It's a quick way of getting the money without having to go through the usual protocols.)
I've run out of my alloted characters. I'll try to follow up in another comment.
Commercial v. Investment banks
Examiner INS (now DHS) Thu Sep 18, 2008 10:49 AM
Commercial banks (where individuals hold accounts and morgages, etc.) are regulated, and by-and-large they are in slightly better shape than the investment banks, some of which are now collapsing or threatening to. Investment banks are NOT regulated in any way because we have legislation in place that prohibits the government from regulating them. (Read that again. Think Lehman Brothers.) That legislation was the product of a bill sponsored by -- I wasn't ready for this -- John McCain (!) and Phil Graham (when he was a Senator) in 1999. That legislation also prohibited the regulation of any firm having to do with the production of energy. (Think ENRON.) This is perfectly in line with the basic Republican belief in the separation of business and government.
Obama's approach does't offer many specifics, but it DOES propose that the government regulate both kinds of banks much more tightly. (He doesn't say specifically how.) But . . .
I'm runninng out of space again
Re: Commercial v. Investment banks
It Spec dod Thu Sep 18, 2008 3:46 PM
to the Examiner, both major candidates speak of putting measures in place to avoid this sort of economic situation again. Neither offers significant specifics. Don't tell us it's just one of them, that's wrong.
Lost Fortune
Claims Rep SSA Thu Sep 18, 2008 12:07 PM
Since October 2007, my TSP balance has dropped $100,000. It took 8 years to get these gains and like water it has all been washed away. I should have got out of the I, S, and C Fund a long time ago, but I kept letting financial advisors tell me that I should always buy low and sell high and hang in there they told me. Now, here I am with only a few years away from retirement as broke and busted as I have never been in my life. Is there a bailout for me, Mr. Fed? Or do I have to be AGI or Bear Stearns? I've never felt so poor in all of my life...By the end of McCain's first year in office, I'll be out of work and on welfare...
Re: Lost Fortune
IT Spec dod Thu Sep 18, 2008 4:23 PM
Claims Rep, the economy was doing well before the Democrats took control of Congress in early 07. Since then the economy has been tumbling and continues to do so. Majority Leader Harry Reid just told us that congress doesn't know what to do about the current crisis so they're going to recess. You better worry about Congress, that's where the correlation is to your losses.
Re: Lost Fortune
Retired Air Force U.S. Navy Sat Sep 20, 2008 3:57 AM
I hope that you have not given up and performed and interfund transfer to say the G fund. Then you would have truley washed away $100,000. As long as you have your shares you have not lost a cent. Transfer to the G fund now and you will lose $100,000. Try to think positive. Money is not everything but it does help. I went shopping the other day and saw a station wagon full of kids and it appeared to me that the family was obviously financially challenged (only some of the children had shoes and the automobile barely ran). You know what? they were the happiest family that I have seen in a long time. They were all happy. laughing and carrying on; made me want to jump out of my new mustang and be apart of their family. Go to a park, go fishing, pick up a new hobby or revisit an old one. Your comments worry me and I hope you are doing better. Now wipe your nose and go do something you enjoy!
Re: Lost Fortune
Doesnt Matter FS Tue Oct 7, 2008 4:50 PM
I'm in the same boat as you are. I'm the only breadwinner in my family so this is really impacting me. I wished I had moved everything into G over a year ago. I feel as you do that my job won't last until I can retire due to the downsizing - we will probably see a lot more since our whole economy is collapsing. I blame outsourcing all of American jobs to all these other countries. Our leaders and corporate CEO's don't believe in taking care of their own - they rather take care of all other countries. Who is going to be left to collect taxes from to support these other countries???
Good Times
Fed Worker DOD Thu Sep 18, 2008 12:13 PM
I posted on Sept 10 that I thought the Dow was marching down to 10,000 or lower. This is not based on tarot cards or a mystic, if you look at all funds over the last 12 months the I, C, S are all trending downward, the G and F are trending up. The actual growth of the market from 1929 until the mid-1950's was rather dull. I am an advocate for keeping the bulk of money in a safe place and only investing a portion of new contributions in the Market. This way there is some reward for risk, and a hedge against loss. This has worked for me, and my Mother (rip). Of course you could listen to those whom have money in the market and they are trying to get you to stay in so they don't lose more. It is just that the fundamentals are not very sound these days.
TSP Drops Fast
Federal Employee Department of Justice Thu Sep 18, 2008 1:37 PM
After yesterday I finally moved what I have left into the G Fund. I'm down in excess of $58,000, $49,000 since May, so it was time. All the financial wizards who continue to say ride out the storm can do so on their own. One analyst today actually predicted this "storm" will last through at least mid-2009.
Re: TSP Drops Fast
IT SPEC DOE Thu Sep 18, 2008 3:58 PM
When will you move it back in, once the market is riding high again? If so, you'll be selling low and buying high. If you don't need to tap into your TSP stock funds for the next decade, why not ride it out?
Re: TSP Drops Fast
QA VA Fri Sep 19, 2008 2:51 PM
I just moved all my C, S, and I into the G and F funds. I am tired of losing money due to the greed of others.
FERS v CSRS AND THE FINANCIAL MARKETS
AUSA DOJ Thu Sep 18, 2008 1:46 PM
Did we make a mistake when we moved Feds from the certainty of 2% increase in a fixed annuity under the CSRS - where a retiree could count on a guaranteed 70% of high three average salary for life after 35 years of service PLUS full COLAs every year to ensure buying power? FERS could lead us to a very old work force never able to retire or a poverty class of once dedicated federal workers. Did we go wrong?
Re: FERS v CSRS AND THE FINANCIAL MARKETS
Diversity Manager DOL Thu Sep 18, 2008 4:01 PM
Nope the taxpayers were tired of a retirement system that was better than anything available in the private sector. So the politicians decided that since the feedback from the CS was they wanted to be more like the private sector that this was a start. Its still a gold plated retirement system so the less the public knows the better for CS workers
CPI/annuity for retirees/TSP
Former Finance Manager/Controller Us Postal Service/Now Retired Thu Sep 18, 2008 2:03 PM
In response to the civil engineer from FAA. The COLA increase is the average of CPI-W for the 3rd quarter of this ear to the 3rd quarter of last year when it was 203.6. The July number was 216.3 or 6.2% above 203.6. The August index dropped 0.5% from July or down to 215.247. The average is 215.77 which 6% above the 203.6 3rd quarter 2007 base. I hope this explains it. If the September index rises by 0.2% then the January cola will be 6%. If oil prices do not drop much during September, then we should see an increase. The huge drop in transportation is what caused inflation to drop.
On the annuity for retiree. It is only as secure as the company that you have it with.
On the current state of the financial world, you can try timing the market, but you never know when it wil turn. Current employees should rebalance their portfolios and take advantage of buying stocks at reduced prices. Retirees who need the money should have allocations a balance btween risk versus reward.
Market is up
Fed Worker DOD Fri Sep 19, 2008 5:56 AM
Like I said before some market risk is warranted, just not more than you can handle. If your retirement time horizon is close you may want to be in a safe place.
TSP
Electronic Tech ET-10 USPS Fri Sep 19, 2008 11:36 AM
TSP's new rules have limiting to just two moves, have just cost me $16,000, as I would have moved into the C (50%) and S (50%) Fund on Wednesday morning for the Close of Bussiness (COB) at the end of the day.
But the earlier move I made at the first of the month that brought a 2 percent gain, then retreat to the G fund has now locked me out for the remainder of the month, while Uncle Sam pumps Billions into the market, and Bushes Cronies (read Insiders get filthy rich).
It's great that the TSP Board is protecting my assets.
A fairer arangement would have been to charge us 25 to 50 dollars a move in excess of alloted two moves.
The Market
Former Finance Manager/Controller Us Postal Service/Now Retired Fri Sep 19, 2008 11:52 AM
Funny-
2 days ago everyone was panicing. My advise was to hang on on do a little rebalancing. Since then the market is up 800 points. You never know about the market. That is why you cannot worry everytime there are short term girations. If you can't handle the volatility, then you should be in the G-fund and live with returns under inflation.
G Fund
Retired CSRS OPM Fri Sep 19, 2008 3:23 PM
I moved all my funds to the G fund about 6 weeks ago and haven't had a negative thought about it yet. Since I recently retired and can't contribute anymore, I can not afford to lose any of it.
I 'll watch the trends.
So there I was with my pants around my ankles
Retired Air Force U.S. Navy Sat Sep 20, 2008 4:23 AM
Now that I have your attention. I know most of us feel quite vulnerable right now but it's up to us to pull up our pants and put a belt on. Elections are right around the corner and it is our individual responesibility to perform due diligence before we vote. If you have done your research and feel good about the canidate that you have choosen you are a great american. Do you feel like you are just one of heard? Well than your used to somebody be helping you pull up your pants.
CSRS % formula
Admin Officer VA Sat Sep 20, 2008 9:05 PM
Many people think you get 2% per yr of service (35 yrs = 70% of your high three salary) The correct formula is YEARS X 2- 4 = % of your high 3 salary. in this example, 35 X 2 = 70-4 = 66% of the average of high 3 salary. Also many in the general public think that federal employees retire with 80% of their salary after 30 yrs. (Correct figure is 56% for 30 yrs of service)
Re: CSRS % formula
Engineer BOR Mon Sep 22, 2008 9:26 AM
Admin Officer, thanks for your comments and formula. After looking at the federal almanac under "Earned CSRS Retirement Percentages", it takes 42 years of service to obtain the 80-percent of your high three salary.
Funny
Fed Worker DOD Mon Sep 22, 2008 9:32 AM
Funny, the market is down again today, and if you look at the trends in the DOW it is going downward over the last year. It is sort of like predictable at this place. Warren Buffet has in the past gotten out of the market, but nobody quotes him on doing that.
Re: Funny
manager Dod Agency Mon Sep 22, 2008 9:40 AM
Buffet just made a huge purchase of an energy company last week.
re:Funny
Fed Worker DOD Mon Sep 22, 2008 10:25 AM
Right, they never quote when he got out of the market. He can buy whatever he wants with his money, I saw that as well. In the TSP we are sort of limited, and can only trade twice a month. We have to look at the bigger trends as we are limited by the funds we have, and energy is not exactly a psychic move at this point in history. The I fund has at least 2 oil companies. The overall funds are trending downward. The G fund has been the top performer since 12/31/07. At some point it will turn around. The question is when? There have been years and years when the market did not do anything, and individual stocks were the real game. So being locked into a few funds with restrictions is harsh, especially when at TSPCenter.com people are making money in their fantasy TSP accounts.
NSPS vs COLA vs FERS
Facility Management Supervisor U.S. Army DOD Fri Sep 26, 2008 8:46 PM
One issue that is not very well calculated for FERS folks effected by the NSPS system. Our COLA is not guaranteed, even though most of us will rate "valued employee" 3. Let me explain: After the Pay Pool judges and administers the payout, only 2% of the COLA goes to us as a cost of living, the rest (1.5%) may or may not be distributed equally, depending on number of 4 & 5's rated. This means our paycheck percentage into FERS for retirement along with diminished SSN will reflect greatly down the road. We NSPS folks are getting double hit. Rampant inflation and reduced COLA's. Promotions are not as promising as under the old system. NSPS folks get "and other duties as assigned" without payment.
Re: NSPS vs COLA vs FERS
Diversity Manager DOL Tue Sep 30, 2008 8:49 PM
Just for the record you don't get a COLA so I'm not sure why you took the time to post
Hang in there!
Field Engineer ARL Tue Sep 30, 2008 12:15 PM
I will ride this one out. By pulling out shares from the C,S and I that have already dropped several points will not help me it will only make my losses greater. I'm biying more shares for less now and when it comes back up a few months from now I will actually make money because I will have more shares that were purchased at a lower price and the ones that lost value will have regained so switching to the G is not in my best interest at this time. Hang in there!!
Not necessary to know the bottom
Electronics Engineer FCC Wed Oct 1, 2008 7:42 AM
FS writes:
"As always, the problem is that no one knows when the market has reached a bottom."
Why do you think it is necessary to know when the bottom is? People should avoid big financial losses whenever they can. You will know when the bottom WAS when the trends start being upward again. Don't buy the market until it is past the bottom and moving up again.
TSP stock losses
Retired USDA Wed Oct 1, 2008 12:30 PM
The old saying is, "When stocks are high, bonds die & when stocks are low, bond grow." I had read several finance articles in early August 2008 saying that 2008 & 2009 were going to be bad, so I moved my funds mostly into G (where I usually like to safeguard 90%) and F fund. Even tho I am retired & not able to add new funds (except for IRA roll overs), I have made money in this trying time. I am not willing to lose money like I did back in late Sept/early Oct 2007. I just finally got my balance back to my 2007 highest balance & surpassed it. Remember October is historically a very bad month for the stock market. AND I hope Treasury hasn't raided our TSP funds for BAILOUT!
TSP Investing
Team Leader DOD (retired) Wed Oct 1, 2008 12:46 PM
As a retiree not able to make deposits into the TSP any longer, I chose to switch my funds entirely into the G Fund in Oct 2007 to protect my base. The 2008 2.86 -3.00 % earnings weren't the best in light of inflation, however, I wasn't hemmoraghing loses as some have. I can't fathom why folks would take no action and just watch their portfolio shrink to such a degree. I have even gone a step further and transferred all of my funds out of the TSP and into an IRA and invested in Ginnie Mae certs with a fixed 5% return. At a later date as the market improves I will consider more risk to stay ahead of inflation and protect my principle. Best of luck to all during these trying times. Stay positive and think things through. Get advice and act.
TSP
PPT Specialist Dept of State Wed Oct 1, 2008 1:24 PM
For those of you who can read charts and can determine the direction the funds are heading you can go to the TSP corner and view the charts there (on the bottom right of the webpage). Also, for those of you that know how to use market indicators, you can plug in the symbol given (the letters before the date on top of each chart) into Yahoo, Bloomberg, or other investment website to get a better determination of market highs and lows. Remember, you can only do two interfund transfers per month so space out your transfers accordingly (no sense in missing out on a good swing because of over transfering). If you are uncomfortable with this then you may want to consider contributing mostly to the L Funds that have diversifaction based on your retirement date. This may just be another recession (of about 5 since the 1970's) that will just produce a market correction. Make sure you are buying low and selling high and not panic and do the reverse. It may not get any cheaper than now.
Run On TSP accounts
Inspector TSA Fri Oct 3, 2008 9:55 AM
I have over 5 years to retire and firmly believe that the "I" fund will recover in that time period and I will be better off for increasing my stake. Full disclosure I have other income that is secure no matter what the stock market does. This move is not for everyone.
TSP Contributions During Economic Crisis
Accountant Defense Finance and Accounting Service Wed Oct 8, 2008 9:07 AM
I was intially going to stop contributing because my budget has tightened this year, however, in light of the fact that I still have over 37 years until retirement, I decided to increase my contributions!
I contribute 80% to the L 2040 Fund, and 20% to the I fund. The L 2040 adjusts quarterly to incrementally more secure investments, and I plan to use my 20% of I as a boost to my gains over the next 10 to 15 years.
If I had invested in stocks on the DJI 37 years ago, I would be extremely wealthy now, as the index rose from Jan 16, 1970 at 782.60 to the close yesterday at Oct 7, 2008 at 9,447.11. That's a 1,207% increase, an average return of 32.6% annually. If I had owned 1,000 shares of some fund that performed identical to the DJI, at $1 each, the fund would now be worth $8,663,510.
Hindsight is 20/20
Fed Worker DOD Fri Oct 10, 2008 8:30 AM
It is nice to have a 37 year time horizon, however many do not. At your age it is prudent to ride this out as 37 years from now the market might be at 70,000 which would make you a very rich Fed. The issue right now is the total meltdown of the financial system, combined with a possible deep recession makes it tough on short term Feds to Buy and Hold. I moved my money at 14,000 and am waiting for the P/E to hit a decent number. Three data points on a graph are a trend.
I feel good I only lost 1600.00.
case query State Wed Oct 22, 2008 4:56 PM
I only lost 1600 so I feel I did a good job. Now its time to allocate funds 50 G, 25 C 25 and I. Sell high buy low. I get it now. If I would be like others I would have lost like 20 to 30 thousands.
Time to Buy
Army
Thu Sep 18, 2008 8:34 AM
Sounds like it's just time to dump all my TSP money into the I fund
Re: Time to Buy
DOD
Thu Sep 18, 2008 9:08 AM
Re: Time to Buy
DOE
Thu Sep 18, 2008 9:10 AM
Re: Time to Buy
DOJ
Thu Sep 18, 2008 10:37 AM
The I fund will be -80% a year from now so why not buy then.. mean time transfer into G
Re: Time to Buy
HHS
Thu Sep 18, 2008 1:18 PM
It’s silly to worry about what the value of your funds are today. I will not touching the money in my TSP for another 30 years. I'm only concerned with the value of what it will be then. The stock market over 10 year periods have always produced positive returns, even with the big dips. This is the nature of financial markets if you can’t take the heat you should be 100% in the G fund all the time.
If you were retiring in the next couple of years, yes I would be concerned with these large drops, but that's also poor planning on the retirees' part.
Re: Time to Buy
Army
Fri Sep 19, 2008 2:21 AM
I'm putting 15% into TSP currently. As soon as the I fund reached about ~18% down I started dumping money into it.
It's going to go up eventually, and I will make some nice, nice profits.
Re: Time to Buy
FCC
Wed Oct 1, 2008 7:49 AM
Financial meltdown on Wall Street
GSA
Thu Sep 18, 2008 8:45 AM
I have argued for years that competency matters. Hopefully people will start to listen now that incompetency has gotten us into this situation. We need to rebuild all of our institutions starting with the educational and moral values systems. We need to get people to think about America as a nation, a society and and a culture. People (especially politicans) need to start acting for the good of the nation, not their own narrow special interest. Everything from Government to Finance is broken and needs to be corrected.
park your money now
DOJ
Thu Sep 18, 2008 8:57 AM
Again, the US economy is in shambles. Yes, I cannot forsee the future and tell you when to buy back but FOR SURE things are only going to get worse and remain stagnant for quite some time so SELL and PARK your money people.
Tranferring Funds to F and G
DOD
Thu Sep 18, 2008 9:13 AM
I commented last month about how stupid it is to leave your hard earned money allocated to all 5 funds when the sky is falling. Even financial planners are saying. "this has never happened before." So if it has never happened why are millions of people, losing their shirts only to be told, hey its all about risk, buy when it is low. Yes, thats smart advice, but not if you have lost 20-50 thousand dollars waiting for the market to return. I cannot see the future but 6 months ago, living in CA and in real estate saw that what was going on was completely irresponsible and the big financial companies had it coming to them. When there is no accountability we are humans, we take advantage; add a little or should I say alot of greed and you have a bad mix. Unfortunately it is the little guy that eventually pays the bill. Though it is not to late to take your money out, it probably is better late than never but as in all personal choices, I decided over 6 month ago and saved myself grief.
CPI
FAA
Thu Sep 18, 2008 9:21 AM
How can the CPI go down >5 in August 08 and the CPI for the year only decline from 6.2 to 6 for the year
annuity for retirees
SBA
Thu Sep 18, 2008 10:22 AM
If a retirees puchased an annuity for a now bankruptied company, what happens to the annuity plan and future pay outs?
Re: annuity for retirees
DOL
Fri Sep 19, 2008 3:36 PM
while employed, count number of shares ....
US EPA
Thu Sep 18, 2008 10:23 AM
Since I'm still employed and have a long ways to go until retirement, I am keeping track of the number of shares added to my TSP each pay period. That eases the pain of a falling market since I know I'm buying 'cheap.' When I can buy cheap, I get more shares each pay period.
I don't think of the dollar amount of my TSP as having much value since it's meaningless until I cash out.
Re: while employed, count number of shares ....
Air Force
Thu Sep 18, 2008 12:58 PM
Re: while employed, count number of shares ....
DON
Mon Sep 22, 2008 7:27 AM
This is exactly the opposite of what we all should be doing.
Re: while employed, count number of shares ....
U.S. Navy
Wed Sep 24, 2008 3:59 AM
Unregulated Investment Banks
INS (now DHS)
Thu Sep 18, 2008 10:24 AM
Several things piqued my curiosity about this, one of them being a report here that a majority of us federal workers favor McCain's economic promises over the un-tested Obama's. That struck me as unlikely because we've always done better under Democrat presidents.
Besides, it's hard to sort out campaign promises from fiscal plausibility -- what a candidate promises and what he says that is actually do-able. Here's what I discovered about McCain.
(1) the earmarks he insists he will veto have been much less than 1% of the total federal expenditures. This came as a surprise. It's still a lot of money that should be saved.
(2) the perpetrators McCain says he will publically humiliate include the Department of the Army, which often inserts requests for additional funds for unexpected expenses. (It's a quick way of getting the money without having to go through the usual protocols.)
I've run out of my alloted characters. I'll try to follow up in another comment.
Commercial v. Investment banks
INS (now DHS)
Thu Sep 18, 2008 10:49 AM
Commercial banks (where individuals hold accounts and morgages, etc.) are regulated, and by-and-large they are in slightly better shape than the investment banks, some of which are now collapsing or threatening to. Investment banks are NOT regulated in any way because we have legislation in place that prohibits the government from regulating them. (Read that again. Think Lehman Brothers.) That legislation was the product of a bill sponsored by -- I wasn't ready for this -- John McCain (!) and Phil Graham (when he was a Senator) in 1999. That legislation also prohibited the regulation of any firm having to do with the production of energy. (Think ENRON.) This is perfectly in line with the basic Republican belief in the separation of business and government.
Obama's approach does't offer many specifics, but it DOES propose that the government regulate both kinds of banks much more tightly. (He doesn't say specifically how.) But . . .
I'm runninng out of space again
Re: Commercial v. Investment banks
dod
Thu Sep 18, 2008 3:46 PM
Lost Fortune
SSA
Thu Sep 18, 2008 12:07 PM
Since October 2007, my TSP balance has dropped $100,000. It took 8 years to get these gains and like water it has all been washed away. I should have got out of the I, S, and C Fund a long time ago, but I kept letting financial advisors tell me that I should always buy low and sell high and hang in there they told me. Now, here I am with only a few years away from retirement as broke and busted as I have never been in my life. Is there a bailout for me, Mr. Fed? Or do I have to be AGI or Bear Stearns? I've never felt so poor in all of my life...By the end of McCain's first year in office, I'll be out of work and on welfare...
Re: Lost Fortune
dod
Thu Sep 18, 2008 4:23 PM
Re: Lost Fortune
U.S. Navy
Sat Sep 20, 2008 3:57 AM
Re: Lost Fortune
FS
Tue Oct 7, 2008 4:50 PM
Good Times
DOD
Thu Sep 18, 2008 12:13 PM
I posted on Sept 10 that I thought the Dow was marching down to 10,000 or lower. This is not based on tarot cards or a mystic, if you look at all funds over the last 12 months the I, C, S are all trending downward, the G and F are trending up. The actual growth of the market from 1929 until the mid-1950's was rather dull. I am an advocate for keeping the bulk of money in a safe place and only investing a portion of new contributions in the Market. This way there is some reward for risk, and a hedge against loss. This has worked for me, and my Mother (rip). Of course you could listen to those whom have money in the market and they are trying to get you to stay in so they don't lose more. It is just that the fundamentals are not very sound these days.
TSP Drops Fast
Department of Justice
Thu Sep 18, 2008 1:37 PM
After yesterday I finally moved what I have left into the G Fund. I'm down in excess of $58,000, $49,000 since May, so it was time. All the financial wizards who continue to say ride out the storm can do so on their own. One analyst today actually predicted this "storm" will last through at least mid-2009.
Re: TSP Drops Fast
DOE
Thu Sep 18, 2008 3:58 PM
Re: TSP Drops Fast
VA
Fri Sep 19, 2008 2:51 PM
FERS v CSRS AND THE FINANCIAL MARKETS
DOJ
Thu Sep 18, 2008 1:46 PM
Did we make a mistake when we moved Feds from the certainty of 2% increase in a fixed annuity under the CSRS - where a retiree could count on a guaranteed 70% of high three average salary for life after 35 years of service PLUS full COLAs every year to ensure buying power? FERS could lead us to a very old work force never able to retire or a poverty class of once dedicated federal workers. Did we go wrong?
Re: FERS v CSRS AND THE FINANCIAL MARKETS
DOL
Thu Sep 18, 2008 4:01 PM
CPI/annuity for retirees/TSP
Us Postal Service/Now Retired
Thu Sep 18, 2008 2:03 PM
In response to the civil engineer from FAA. The COLA increase is the average of CPI-W for the 3rd quarter of this ear to the 3rd quarter of last year when it was 203.6. The July number was 216.3 or 6.2% above 203.6. The August index dropped 0.5% from July or down to 215.247. The average is 215.77 which 6% above the 203.6 3rd quarter 2007 base. I hope this explains it. If the September index rises by 0.2% then the January cola will be 6%. If oil prices do not drop much during September, then we should see an increase. The huge drop in transportation is what caused inflation to drop.
On the annuity for retiree. It is only as secure as the company that you have it with.
On the current state of the financial world, you can try timing the market, but you never know when it wil turn. Current employees should rebalance their portfolios and take advantage of buying stocks at reduced prices. Retirees who need the money should have allocations a balance btween risk versus reward.
Market is up
DOD
Fri Sep 19, 2008 5:56 AM
Like I said before some market risk is warranted, just not more than you can handle. If your retirement time horizon is close you may want to be in a safe place.
TSP
USPS
Fri Sep 19, 2008 11:36 AM
TSP's new rules have limiting to just two moves, have just cost me $16,000, as I would have moved into the C (50%) and S (50%) Fund on Wednesday morning for the Close of Bussiness (COB) at the end of the day.
But the earlier move I made at the first of the month that brought a 2 percent gain, then retreat to the G fund has now locked me out for the remainder of the month, while Uncle Sam pumps Billions into the market, and Bushes Cronies (read Insiders get filthy rich).
It's great that the TSP Board is protecting my assets.
A fairer arangement would have been to charge us 25 to 50 dollars a move in excess of alloted two moves.
The Market
Us Postal Service/Now Retired
Fri Sep 19, 2008 11:52 AM
Funny-
2 days ago everyone was panicing. My advise was to hang on on do a little rebalancing. Since then the market is up 800 points. You never know about the market. That is why you cannot worry everytime there are short term girations. If you can't handle the volatility, then you should be in the G-fund and live with returns under inflation.
G Fund
OPM
Fri Sep 19, 2008 3:23 PM
I moved all my funds to the G fund about 6 weeks ago and haven't had a negative thought about it yet. Since I recently retired and can't contribute anymore, I can not afford to lose any of it.
I 'll watch the trends.
So there I was with my pants around my ankles
U.S. Navy
Sat Sep 20, 2008 4:23 AM
Now that I have your attention. I know most of us feel quite vulnerable right now but it's up to us to pull up our pants and put a belt on. Elections are right around the corner and it is our individual responesibility to perform due diligence before we vote. If you have done your research and feel good about the canidate that you have choosen you are a great american. Do you feel like you are just one of heard? Well than your used to somebody be helping you pull up your pants.
CSRS % formula
VA
Sat Sep 20, 2008 9:05 PM
Many people think you get 2% per yr of service (35 yrs = 70% of your high three salary) The correct formula is YEARS X 2- 4 = % of your high 3 salary. in this example, 35 X 2 = 70-4 = 66% of the average of high 3 salary. Also many in the general public think that federal employees retire with 80% of their salary after 30 yrs. (Correct figure is 56% for 30 yrs of service)
Re: CSRS % formula
BOR
Mon Sep 22, 2008 9:26 AM
Funny
DOD
Mon Sep 22, 2008 9:32 AM
Funny, the market is down again today, and if you look at the trends in the DOW it is going downward over the last year. It is sort of like predictable at this place. Warren Buffet has in the past gotten out of the market, but nobody quotes him on doing that.
Re: Funny
Dod Agency
Mon Sep 22, 2008 9:40 AM
re:Funny
DOD
Mon Sep 22, 2008 10:25 AM
Right, they never quote when he got out of the market. He can buy whatever he wants with his money, I saw that as well. In the TSP we are sort of limited, and can only trade twice a month. We have to look at the bigger trends as we are limited by the funds we have, and energy is not exactly a psychic move at this point in history. The I fund has at least 2 oil companies. The overall funds are trending downward. The G fund has been the top performer since 12/31/07. At some point it will turn around. The question is when? There have been years and years when the market did not do anything, and individual stocks were the real game. So being locked into a few funds with restrictions is harsh, especially when at TSPCenter.com people are making money in their fantasy TSP accounts.
NSPS vs COLA vs FERS
U.S. Army DOD
Fri Sep 26, 2008 8:46 PM
One issue that is not very well calculated for FERS folks effected by the NSPS system. Our COLA is not guaranteed, even though most of us will rate "valued employee" 3. Let me explain: After the Pay Pool judges and administers the payout, only 2% of the COLA goes to us as a cost of living, the rest (1.5%) may or may not be distributed equally, depending on number of 4 & 5's rated. This means our paycheck percentage into FERS for retirement along with diminished SSN will reflect greatly down the road. We NSPS folks are getting double hit. Rampant inflation and reduced COLA's. Promotions are not as promising as under the old system. NSPS folks get "and other duties as assigned" without payment.
Re: NSPS vs COLA vs FERS
DOL
Tue Sep 30, 2008 8:49 PM
Hang in there!
ARL
Tue Sep 30, 2008 12:15 PM
I will ride this one out. By pulling out shares from the C,S and I that have already dropped several points will not help me it will only make my losses greater. I'm biying more shares for less now and when it comes back up a few months from now I will actually make money because I will have more shares that were purchased at a lower price and the ones that lost value will have regained so switching to the G is not in my best interest at this time. Hang in there!!
Not necessary to know the bottom
FCC
Wed Oct 1, 2008 7:42 AM
FS writes:
"As always, the problem is that no one knows when the market has reached a bottom."
Why do you think it is necessary to know when the bottom is? People should avoid big financial losses whenever they can. You will know when the bottom WAS when the trends start being upward again. Don't buy the market until it is past the bottom and moving up again.
TSP stock losses
USDA
Wed Oct 1, 2008 12:30 PM
The old saying is, "When stocks are high, bonds die & when stocks are low, bond grow." I had read several finance articles in early August 2008 saying that 2008 & 2009 were going to be bad, so I moved my funds mostly into G (where I usually like to safeguard 90%) and F fund. Even tho I am retired & not able to add new funds (except for IRA roll overs), I have made money in this trying time. I am not willing to lose money like I did back in late Sept/early Oct 2007. I just finally got my balance back to my 2007 highest balance & surpassed it. Remember October is historically a very bad month for the stock market. AND I hope Treasury hasn't raided our TSP funds for BAILOUT!
TSP Investing
DOD (retired)
Wed Oct 1, 2008 12:46 PM
As a retiree not able to make deposits into the TSP any longer, I chose to switch my funds entirely into the G Fund in Oct 2007 to protect my base. The 2008 2.86 -3.00 % earnings weren't the best in light of inflation, however, I wasn't hemmoraghing loses as some have. I can't fathom why folks would take no action and just watch their portfolio shrink to such a degree. I have even gone a step further and transferred all of my funds out of the TSP and into an IRA and invested in Ginnie Mae certs with a fixed 5% return. At a later date as the market improves I will consider more risk to stay ahead of inflation and protect my principle. Best of luck to all during these trying times. Stay positive and think things through. Get advice and act.
TSP
Dept of State
Wed Oct 1, 2008 1:24 PM
For those of you who can read charts and can determine the direction the funds are heading you can go to the TSP corner and view the charts there (on the bottom right of the webpage). Also, for those of you that know how to use market indicators, you can plug in the symbol given (the letters before the date on top of each chart) into Yahoo, Bloomberg, or other investment website to get a better determination of market highs and lows. Remember, you can only do two interfund transfers per month so space out your transfers accordingly (no sense in missing out on a good swing because of over transfering). If you are uncomfortable with this then you may want to consider contributing mostly to the L Funds that have diversifaction based on your retirement date. This may just be another recession (of about 5 since the 1970's) that will just produce a market correction. Make sure you are buying low and selling high and not panic and do the reverse. It may not get any cheaper than now.
Run On TSP accounts
TSA
Fri Oct 3, 2008 9:55 AM
I have over 5 years to retire and firmly believe that the "I" fund will recover in that time period and I will be better off for increasing my stake. Full disclosure I have other income that is secure no matter what the stock market does. This move is not for everyone.
TSP Contributions During Economic Crisis
Defense Finance and Accounting Service
Wed Oct 8, 2008 9:07 AM
I was intially going to stop contributing because my budget has tightened this year, however, in light of the fact that I still have over 37 years until retirement, I decided to increase my contributions!
I contribute 80% to the L 2040 Fund, and 20% to the I fund. The L 2040 adjusts quarterly to incrementally more secure investments, and I plan to use my 20% of I as a boost to my gains over the next 10 to 15 years.
If I had invested in stocks on the DJI 37 years ago, I would be extremely wealthy now, as the index rose from Jan 16, 1970 at 782.60 to the close yesterday at Oct 7, 2008 at 9,447.11. That's a 1,207% increase, an average return of 32.6% annually. If I had owned 1,000 shares of some fund that performed identical to the DJI, at $1 each, the fund would now be worth $8,663,510.
Hindsight is 20/20
DOD
Fri Oct 10, 2008 8:30 AM
It is nice to have a 37 year time horizon, however many do not. At your age it is prudent to ride this out as 37 years from now the market might be at 70,000 which would make you a very rich Fed. The issue right now is the total meltdown of the financial system, combined with a possible deep recession makes it tough on short term Feds to Buy and Hold. I moved my money at 14,000 and am waiting for the P/E to hit a decent number. Three data points on a graph are a trend.
I feel good I only lost 1600.00.
State
Wed Oct 22, 2008 4:56 PM
I only lost 1600 so I feel I did a good job. Now its time to allocate funds 50 G, 25 C 25 and I. Sell high buy low. I get it now. If I would be like others I would have lost like 20 to 30 thousands.