Thread: New Investor Questions

Bob,

Use the TSP Calculator and perform some calculations.. I think you will be surprised how much many you will have at retirement.

http://www.tsp.gov/calc/PAB_intro.html

I normally put 7% to 10% in the annual return box. If you can average that over the next 30 years you just might have has much money as Birchtree. I have been in the Market since the early 80's. My projected total portfofio value at 7% return including my wife's account at age 62 is over a 1 million. Will that be enough? It will be for me. Try to stay out of debt and pay yourself first every payday and your on your way. Dollar cost average and the hard part is the TSP mission statement; CAPITAL PRESERVATION!

Just follow the TSP mission statement; Our mission is simple: We want to maximize our Thrift Savings Plan retirement accounts and help others along the way.

We do this by allocating our TSP assets into the funds which have the highest probability for capital preservation and greatest possibility for increased returns.

I give much of my success to Bob Brinker. I get his news letter monthly and listen to his program ever weekend.. I get it on demand, it cost me 4.95 a month. BOB RECOMMENDED early in 2000 to get out of the market, I took his advice. It saved my CAPITAL! He gave a buy when the S&P was 800 and is still on a buy signal. I do use TA's and signed up for the Shark's weekly service today.

You can get plenty of Free good advice here, but again my formula for success equals =

Low debt + pay youself first every payday + low cost mutual funds and dollar cost averaging + CAPITAL PRESERVATION and DON'T USE YOUR RETIREMENT ACCOUNT; NO BORROWING OR EARLY WITHDRAWS. It all adds up to a nice retirement account.

It's sometimes not easy, but it's how I have managed to build my accounts.

Hope you can use some of these ideas Bob. Good luck in your investing, the board members are here for you Brother!!!

The Funds you invest in, and the amount is a personal choice based on risk tolerance. Sign up for the free 14 day service from the Shark and see what a Pro recommends. I can tell you what Bob Brinker recommends for TSP accounts.. A TSP member called him last year and Bob recommend to him around 60% C 30% S 10% I dollar cost average and Set it and Forget it! Follow Birchtree's account if that's for you. He stays fully invested all the time, I don't..... I do like Vanguard Total Stock and Total International for mutual funds.

Ho Bob and welcome to TSP-Talk.

You have your risk at 86% which is pretty close to where it ought to be according to the experts -- the breakout in the L-funds which you mentioned. If you are happy with that, fine.

Just remember to rebalance! The L-funds rebalance daily. I use a set allocation and rebalance monthly, manually. By rebalancing you assure that earnings will be in proportion to the percentages in your allocation: 4% of the total portfolio earnings will come from G-fund, 10% from F-fund, etc., etc. Without rebalancing, your risk will grow unchecked as one or another of the funds advances beyond the rest. Rebalancing is the key to dividend reinvesting, too.

Oh, one other thing. Consider dividing your contributions up among the funds in the same proportions as your allocation.

You notice I have spoken only of how you should manage your portfolio and said nothing about how that should be invested. There are no professional investment advisors here! That is your biggest decision and the purpose behind our forum. Enjoy.

Dave

Thanks a lot for the replies guys. You both gave me a lot of good information. I will do some research and make sure I redistribute my allocations.

Cool website.

Thanks