As the current stock market doldrums drag on and the value of TSP stock funds dwindle, some TSP investors have been busy moving billions of dollars into the safety of the G fund and out of the TSP stock funds.
It is human nature to panic when you see your stock investments losing money. The result is always the same: small investors dump their stock funds as the market goes down and they usually dump the most money when the market is at its lowest point. To preserve your retirement funds, take a deep breath, step back and look at the bigger picture. It may keep you from making a big mistake.
On October 9, 2007, the stock market hit new highs. On October 9, 2008, the markets hit a multi-year low. Current retirees, those planning on retiring soon and even those hoping to retire in the next five years and concerned. Here is how the TSP funds have fared in the past year–and some hope for the future.
A federal court concludes that a decision resulting in the 342 suspension of an employee in the Social Security Administration was arbitrary because it was based solely on a “time served” suspension without logical deliberation on the length of the suspension.
You may know that the “average” rate increase for the Federal Employees Health Benefits Plan is going up 8%. That may not be relevant to your plan. Here is more information on how much of a change there may be in your health benefits costs next year.
The bailout bill “ended up attached to a measure that extends benefits to people suffering from depression and is named after a lawmaker who died in a crash.” Most people do not know what is in the bill. Congress may prefer it that way.
Your TSP funds have probably taken a dramatic hit. Put the situation in perspective before hitting the panic button and making decisions you may regret later.
A temporary government spending bill will fund the federal government into March of next year. It also contains an average pay raise for federal employees of 3.9% that will be effective in January.
The President has issued an Executive Order that authorizes noncompetitive appointments to federal jobs for spouses of military personnel.
Are stock market investors at “the point of maximum pessimism”? It isn’t possible to know but there is plenty of evidence to think we are at least in the vicinity. Here is a chart that shows how stocks have fared after dramatic one-day drops and how the stocks had fared one year later.
