Hello Everyone

**silentbob** · 02-15-2005, 02:45 PM

Hi all. I'm 23 yrs old, active duty AF. I finally opened up an IRA last month after procrastinating for a couple years (wish I did it sooner). I'm in the Vanguard 2045 fund. Right now it's like 89% equity, 11% bond. My question is, I've had money going to a TSP account for a few years now. When I opend it up, I didn't know much about about savings or investing, basically just wanted to do SOMETHING for my future. I put it all in the 'C' fund (not sure if this was a smart move or not, like I said, I didn't know much about money management, heck, I still don't

So now that I've got an IRA, I'm wondering what I should be doing with my TSP. I've currently got a little under $4,000 in it. Should I transfer it to another fund, or distribute it like you guys do? I'm open to suggestions.

Thanks,
Chris

**Cortez** · 02-15-2005, 04:05 PM

Welcome Chris,

The idea of this site is not to simply pick a fund and check it in a year, but rather actively manage your TSP account to maximize gains and minimize losses. Tom provides fund allocation suggestions for three strategies. Short term, where Tom makes changes as often asmultiple timesin a month; Mid term, where Tom reassesses the direction of the market over 6 months to a year; Long term, where Tom assesses the market over a period of years. If you don't have the time to regularly check this site, I would recommend following Tom's mid range assessment. Basically the mid range assessment is to avoid the F fund and allocate evenly between the others. So 25%G, 25%C, 25%S, 25%I.

As for myself, I have been riding the I fund 100% for six months until the January market pullback when I put 50% in the G fund. However, I am looking to return 100% I fund as the dollar rally has subsided and the I fund technicals look positive. The I fund is in an uptrend and is currently at prior resistance. If it breaks resistance on the upside I am all in for the I fund ride.

**Rolo** · 02-15-2005, 06:15 PM

Heeeeey, a fellow Kevin Smith fan...Welcome SilentBob!

Currently, all of my international and real asset investments are the top performers. I am 70I, 20C, 10S. Your 100% C fund allocation is fine, but you may want to spread your risk a little while open yourself up to other opportunites for gains by putting some in I and S. e.g. If the US market tumbles, having some in I will mitigate some of those losses; likewise, if the international market rallies/the dollar falls and the I makes nice gains, then you would not have missed it by being all in C.

Your retirement is 20+ years away, so stay aggressive. Also, max out your TSP and put the max ($4K) in your IRA if you can. Oh, and, good show! I wish I started when I was your age.

**rokid** · 02-15-2005, 11:22 PM

Chris,

Unless you have a very good reason not to, I'd use the same allocation for your TSP account as the Vanguard 2045 fund. In other words, rounding up the percentages:

11% F Fund

53% C Fund (holding 75% of the C fund and 25% of the S fund is the same as thetotal market for domestic equities)

18% S Fund

18% I Fund (European and Pacific stocks)

Cortez is right, this site is devoted to moving funds around. However, I'd "buy and hold" those percentages and rebalance on a yearly basis.

Incidentally, my son (22 years old) has been holding the Vanguard 2045 fund since May 2004 and has an annual return of 17.1% May 2004-Feb 15, 2005.

89% equities is aggressive. However, you're young! Good luck!:^

**teknobucks** · 02-16-2005, 01:32 AM

rokid wrote:

Chris,

Unless you have a very good reason not to, I'd use the same allocation for your TSP account as the Vanguard 2045 fund. In other words, rounding up the percentages:

11% F Fund

53% C Fund (holding 75% of the C fund and 25% of the S fund is the same as thetotal market for domestic equities)

18% S Fund

18% I Fund (European and Pacific stocks)

Cortez is right, this site is devoted to moving funds around. However, I'd "buy and hold" those percentages and rebalance on a yearly basis.

Incidentally, my son (22 years old) has been holding the Vanguard 2045 fund since May 2004 and has an annual return of 17.1% May 2004-Feb 15, 2005.

89% equities is aggressive. However, you're young! Good luck!:^

good advice! U do not need any thing to do with theG fund.

try to buy some real estate ASAP...just a lot somewhere is a good start.

tekno