Thread: Hello Everyone

Start with the information on the TSP website regarding how TSP works, and how each fund is structured. Determine what you will need at retirement, and then develop your strategy to get there based on your risk tolerance. Reading the information and opinions on this site will help to inform, but it may also confuse. Wouldn't hurt to consult with a financial advisor either.

Welcome and Good Luck...

Originally Posted by Redhead

Any advice about how to become more savvy would be appreciated.

The majority of TSP Talkers subscribe to market timing and technical analysis, i.e. trying to "beat" the market.

The other major investment approach is passive Asset Allocation (AA) based on the Efficient Market Hypothesis (EMH). Under passive AA you decide on a diversified asset allocation that meets your return needs and risk tolerance and stick to that allocation through "thick and thin". Typically a passive AA would include all of the TSP Funds. A very aggressive, 100% equities approach would leave out the G and F funds.

Passive AA assumes that the amateur investor (or the vast majority of professional investors) cannot expect to beat the market. Therefore, the strategy is to capture what the market offers. Incidentally, the indexing approach that TSP funds use is based on EMH and popularized by Vanguard. For passive AA information:

1. The Vanguard Diehards at http://www.diehards.org/?ndays=10
2. William Bernstein's site at http://www.efficientfrontier.com/. Mr. Bernstein has written several informative asset allocation books. His site also offers a recommended reading list as does the Diehard site.
3. The Coffee House Investor at http://www.coffeehouseinvestor.com/
4. John Bogle's blog http://johncbogle.com/wordpress/. Mr. Bogle is the founder of the Vanguard Funds.

As you may have guessed, I'm a passive AA advocate.

However, the important thing is to do some research and adopt an investment approach that you can effectively execute in both Bull and Bear markets.

Good luck!

Welcome Redhead! Thanks for joining us.

Tom

just wanted to say hello and thanks to everyone on this site. i have been saying for a long time that tspers needed something like this to guide us,since the gov just left us to our own stupidity to make our retirement sink or swim. i just discovered the site about 2 months ago. i thought i was doing pretty well on my own just by watching major indicators dow, snp,nasdaq. but you all have opened my eyes to a bigger picture. i wish i would have found this sooner. being 7 years from retirement, and trying to make the most with what i have.

thanks a bunch

guchi

Welcome to the board GUCHI.

Welcome Guchi!!

"...I'm pretty green." But wait! I thought you were red. D

Welcome Red. There is a lot to take in as a new investor. Start by reading Tom's daily commentary, it has helped me a great deal to understand markets and trends. Good luck!