Thread: Any Advice Appreciated

Any answer will be speculation because none of us know what the market will do or when it will recover.

At your age you need to be very careful in this market. First if it was me, I would delay my retirement until the economy comes out of this nightmare and that may take a few years. Inflation is coming and that means COLA. More jobs will be lost and that means more time to recover. Some of the crooks on CNBC are crying because the savings rate is going up and people are not pissing away their money fast enough to suit them and that mean more time to recover.

Hang tight is your only TSP option after all this is the biggest financial crisis since the Great Depression and it ain't over yet.

The best 1 year CD rate is GMAC at 3.75% and the G fund is 2.75%.

It is not sexy, but I say hang in the G fund. It is safe.

Originally Posted by saturneptune

I do not post very often here, but read a lot. I feel very trapped and do not know what to do with TSP. I passed by retirement date August 4th, but as of yet, have not left. My TSP is around 185K and have been in the G fund since March 08, contributing 20%. As of late, I have noticed, I am sure because of the Treasury rates, that the G fund is gaining about half of what it was. Does anyone have any suggestions, such as a better mix with on time horizon? Does anyone think the G fund will go back to the rate it was putting out daily? I was planning on about 30 years of equal payments based on 4-5%. Any advice would be greatly appreciated. I am 56.

I'm pretty much in the same boat as you. I had planned to retire at 58 ( 4 years from now), but with the economy the way it is, I may have to stay a year or 2 longer. Damn. I'm sitting in the G and have been very frugal with how I IFT my TSP, however, I am maxing out 2 ROTH's with Individual stocks as a hedge for when the economy goes up, but only after I get the 5% matching from TSP.

Not much else we can do, but to protect our nest egg.

CB

I have put off retiring myself, and am now thankful to have a job. We need to help others out as much as possible while still trying to hold our own. At least our boat is floating(barely). I know if any of us need encouragement we can come here to find others just like us. Take care and proctect yourself.

I think we are all in the same boat one way or the other. The only thing I really am sure of is that I have 358 more days and I'm out of here, unless something really bad changes my mind?

Originally Posted by nnuut

I think we are all in the same boat one way or the other. The only thing I really am sure of is that I have 358 more days and I'm out of here, unless something really bad changes my mind?

Now I am envious. Here's hoping bad happens.

CB

Originally Posted by CountryBoy

Now I am envious. Here's hoping bad happens.

CB

JENKS

Originally Posted by nnuut

I think we are all in the same boat one way or the other. The only thing I really am sure of is that I have 358 more days and I'm out of here, unless something really bad changes my mind?

All I can say is take those nice "safe" percentages that you are using to do your TSP return calculations for retirement, and make them even more conservative. There is a chill wind blowing out here in Retired Annuitant land!

Lady

House paid for, Cars paid off in 8 Months, Credit cards paid off Monthly.
CSRS, 40% of my Social Security (thanks to the WEP) and TSP for backup should suffice.

Originally Posted by nnuut

House paid for, Cars paid off in 8 Months, Credit cards paid off Monthly. CSRS, 40% of my Social Security (thanks to the WEP) and TSP for backup should suffice.

oooh-h-h! I'm so jealous!

I have no debts but my home but I'll have a mortgage until I die. And my FERS annuity is about 40% of my working paycheck, and if I don't get SS disability (still fighting - the common version of what I have is specified as a disability but the rarer kind I have is not specifically mentioned so it's a fight) then I've got seven more years to Social Security $, and my TSP account is not a bad size but this economy and 2 IFTs make it difficult to meet my percentage goals.

That's the long way around, Norm, to say, "Congratulations! You are definitely prepared for retirement!"

Lady

I feel your pain with the G fund. I, too, am in 100 G since last February. I only showed a mimumal 2.17% gain this year and ended up # 11 on the auto tracker. What that tells me is that a lot of other folks are NOT doing too well with their retirement nest egg. A lot of my friends are worried about their future financial requirements, so they are hanging on to their careers and pissing their life away at work instead of enjoying retirement.
I'll put a little different spin on the retirement issue. I am retired...did it during the stock market hay days in 2005 thinking I would make $5000 to $10,000 per year in TSP. I decided to move out of the big city rat-race. Sold my house, bought a nicer, bigger house (but needs a little work) in a little mountain town in Utah. House payment is only $650 a month for the next 10 years; no car payment, no credit card debt, putting $300 a month into savings. Living on about half what i used to live on and enjoying it more. Able to do more and have more fun than ever in my life. Standard of living is better, but cost of living is a lot less. As long as the government survives, and I get my retirement check, life is grand. TSP is only there for an emergency or a back up. I am just thankful for the little increase in TSP that I do get. That 2.17% will get me to Arizona for two months this winter, Hawaii for three weeks in the spring, (the rates are great right now over there), and fishing in Alaska in July. In retirement, you have the opportunity to take advantage of the great deals that are out there. If you love your work....stay in as long as you enjoy it. If you want to really enjoy life, quit giving your retirement check to Uncle Sam every month, and spend it yourself. Retirees got 5.8% COLA this year. At 2% increase for every year you work past 30 years and 55 years old, that is only $2000 a year increase if your salary is $100,000 a year. Is that worth the freedon of retirement? Not to me. Don't let fear drive your life's decisions. If you can enjoy each day, you will live longer and collect more in retirement. You just have to spend smart. Statistics prove out that if you retire at 55 you will live to be 83. If you retire at 65, you will live to be 66 1/2. You do the math.

saturneptune,

If I had all that cash this is what I'd do. Recognizing that the C fund has dropped over $7 in the last 12 months there is plenty of opportunity there - providing you are interested in making further gains for retirement. At a $10.00 price you can load up with 18,000 shares and make a potential $126,000 over the next couple of years - that's the aggressive approach. Slow entry would be the best approach at this time however. Buying a 25% position in the C fund tomorrow would be adviseable and then dollar cost average at a 25% position as we move up. I would also use my payroll contribution to DCA more C fund shares which ever way the market moves - just start buying while these prices are golden. The C fund went from $13.86 right into the $10 range bypassing the $12 and $11 dollar ranges - that's where I see my next opportunities to accumulate more shares. Interest rates are likely to remain low for a considerable period and the G fund payout will suffer as a result. Sometimes one has to assume some risk to gain financial ground going forward - you are in an excellent position to assume some risk.