Losing money?

**AFMark** · 09-11-2008, 02:11 AM

Hello everyone. I have noticed that over the past few months, my overall balance has decreased even though I am adding money. How does this work. Because the share prices are cheaper than what I bought them for creates a debt of some sort?

I am still relatively new to all this, and want to make sure that I dont end up with all my money gone. I understand that we are in a recession of sorts, but expect to bounce back. When it does bounce back, will the share prices go up, creating a greater return? Thanks, and sorry to sound so dumb

**Show-me** · 09-11-2008, 11:34 AM

Good question! As the market declines it is decreasing the value of the individual share. That is decreasing the value of your account. Now is the time for you to kick up the contributions and make it hurt. You are and buy and holder style and you should not worry. Keep buying! The cheaper the share price gets the more shares you get when your contributions hit.

Your account will not go to zero and if it does you have bigger problems than that. Eventually the market will start coming back so keep buying the cheaper shares. The more you do the more money you will make when we recover, just remember it will take a while to recover.

If you are close to retirement, five years or less, it would be a different answer.

**tsptalk** · 09-11-2008, 01:47 PM

Good advice show-me...

number of shares
x
share price
account balance

Your bi-weekly contributions increase the number of shares

The up and down fluctuations of the funds, in your case an L-fund, influences the share price.

More on The Funds

Good luck!

**AFMark** · 09-20-2008, 09:17 PM

Thanks for the advice...hopefully we bounce back with a vengeance.

**Show-me** · 09-20-2008, 09:36 PM

We always do, good luck!

**James48843** · 10-09-2008, 11:15 AM

Is that what the "L" in "L-fund" stands for?

Losses?

(Just kidding. I highly recommend the L funds for long term investors- it's actually a pretty neat idea that works over long-terms.)

**SenorL321** · 12-02-2008, 04:08 AM

Hello everyone,
Just wanted to say i'm happy i ran into this forum and at least here i'll get better info in regards to my L fund investment. I have a quick question, i don't know much about investing and only about 9 months ago started contributing to the TSP L fund 2020...my question is the following, i currently have 100% of my contributions going into the L fund and am about to deploy to afghanistan for about a year...can i contribute (increase) more towards my TSP know and upon returning from deployment lower it (my contributions) back to my pre-deployment amount. I gladly appreciate any help you can give me in answering this question..thanks.

**tsptalk** · 12-02-2008, 05:00 AM

Originally Posted by SenorL321

Hello everyone,
Just wanted to say i'm happy i ran into this forum and at least here i'll get better info in regards to my L fund investment. I have a quick question, i don't know much about investing and only about 9 months ago started contributing to the TSP L fund 2020...my question is the following, i currently have 100% of my contributions going into the L fund and am about to deploy to afghanistan for about a year...can i contribute (increase) more towards my TSP know and upon returning from deployment lower it (my contributions) back to my pre-deployment amount. I gladly appreciate any help you can give me in answering this question..thanks.

Welcome SenorL312!

The answer is yes. The Form is TSP-U-1 (http://www.tsp.gov/uniserv/forms/tsp-u-1.pdf)
You may need to cut and paste the link into a browser as just clicking on it may only take you to the TSP home page.

**dannyboy** · 12-02-2008, 08:17 PM

I m not too happy with the way the market has been acting. So, I have decided to be on the sideline for a few weeks or months to wait to see some stabilization?

I know that things get worse than better than worse - - -, so I'll try to exit then jump back in when I'm in a better place.

**SenorL321** · 12-03-2008, 04:04 AM

Originally Posted by tsptalk

Welcome SenorL312!

The answer is yes. The Form is TSP-U-1 (http://www.tsp.gov/uniserv/forms/tsp-u-1.pdf)
You may need to cut and paste the link into a browser as just clicking on it may only take you to the TSP home page.

Thanks for the quick reply, i'll be contributing a bit more towards the fund...one last question, i know the advantage of the TSP is that what i contribute is tax deffered BUT in the case of me going to afghanistan which is a tax free zone for us military then what benifits do i actually get out of contributing, i'm sure it has it's benifits but honestly i've been working ver long hours getting ready to deploy that i've been losing alot of sleep lately and i can't think straight jejeje and i really haven't had time to search the net for the info (luckilly i found you guys e).Thanks for all the help.

**tsptalk** · 12-03-2008, 04:19 AM

Originally Posted by SenorL321

Thanks for all the help.

And thank you for your service!

**Show-me** · 12-03-2008, 12:13 PM

Originally Posted by SenorL321

Thanks for the quick reply, i'll be contributing a bit more towards the fund...one last question, i know the advantage of the TSP is that what i contribute is tax deffered BUT in the case of me going to afghanistan which is a tax free zone for us military then what benifits do i actually get out of contributing, i'm sure it has it's benifits but honestly i've been working ver long hours getting ready to deploy that i've been losing alot of sleep lately and i can't think straight jejeje and i really haven't had time to search the net for the info (luckilly i found you guys e).Thanks for all the help.

I wish I could have done this when I was in the first Gulf War. I was much more stupid then.

Tax free money!!! Put it in a account that you NEVER have to pay taxes on. A ROTH IRA. You have a sweet opportunity to avoid taxes big time. Roth IRA are traditionally for after tax money but if you're a vet in a combat zone, guess what? You don't pay income tax. Nice loop hole for our brothers and sisters in the field. Tell your comrades about this.

Of course it goes with out saying that if you get matching funds from TSP, get those first. O wait I just said it. Good luck and thanks for your service. Semper Fi