Thread: Sunkissedbeach's Account Talk

Hi SKB,
Please see the TSP.gov site where they talk about the new Life Cycle funds (the L-Funds). These ar funds built on a time horizon. They do have risk, but miminized. If you go with the regular funds TSTTalk has some suggested allocations for long term investing, see Allocations. Not being market savy and using a blind allocation, is not to your advantage. If you would like, stay on board and learn about investment strategies, what works and what doesn't.
We are not financial advisors, but we can point you to various options that are available.
Regards
Spaf

Welcome SKB,

I can’t give you advice on what allocation you should do. Don’t want to sound like a commercial, but the TSP Timing Newsletter by RevShark (on the home page of this site) may be a starter for you. It costs about $20 a month and the weekly newsletter will advice you what to allocate your funds for the coming week. It really is a small cost comparing with how much you can profit from the proper allocations.

Current returns starting from Feb 1, 2006 is about 5.37%. The returns is not bad at all and it beats the G/F/C/S funds so far this year.

As you learn more about the TSP allocations from the participants on this site, you may want to try something on your own. But until then, you may be better off to stick with the pro for the time being. I had subscribed the newsletter for a short period of time and found the allocation advice on the risk level is moderate and it should fit you as a beginner.

Good luck

Ocean

Originally Posted by sunkissedbeach

Hello,

What should his allocations be set at. I have made a interfund transfer to 50% C and 50% G but what about his allocations what should they be set at?

How can I learn more about this, you people are experts and seem to change around your allocations all of the time to save and make money. I want to do this but have no clue how or who to ask for help.

Please help.

SKB

There are basically three ways to make money in stocks: 1.) stock picking; 2.) market timing; and 3.) asset allocation. Of course, #1 doesn’t apply to TSP. Most of the contributors to this board engage in #2, i.e. market timing. Therefore, if you’re interested in market timing, you’ve come to the right place. Finally, most academic studies assert that markets are efficient, you can’t consistently beat them, and that the primary determinant of portfolio success is #3, asset allocation.

Most experts recommend investing in the total stock market and then adjusting your level of risk with fixed income funds. A typical recommendation is: 60% stocks (47% C Fund, 13% S Fund) and 40% fixed income (20% G Fund, 20% F Fund). If you want to include international stocks (50% of world market capitalization and a good diversifier), then the international recommendation, because of currency risk, is 20-40% I Fund. Consequently, an allocation of average risk might be:

20% G Fund
20% F Fund
31% C Fund
11% S Fund
18% I Fund

Of course, the L Funds are also excellent investment vehicles. They provide asset allocation based on your investment horizon, e.g. years to retirement, automatic rebalancing, and adjustment for risk.

If you’re interested in a strategic asset allocation approach,i.e. asset allocation, buy and hold with periodic rebalancing, the following may be useful:

• The Vanguard Diehards forum: http://www.diehards.org/?ndays=10. The Diehards would be more than willing to suggest an asset allocation based on your need and ability to assume risk.
• The CoffeeHouse Investor: http://www.coffeehouseinvestor.com/.
• Financialengines: https://www.financialengines.com/FeContent?act=welcome. This is William Sharpe’s website. William Sharpe won the Nobel Prize. Amazingly, Finanacialengines offers asset allocation tools and advice to federal employees for free!
• Common Sense on Mutual Funds, John C. Bogel
• A Random Walk Down Wall Street, Burton G. Malkiel
• The Intelligent Asset Allocator, William Bernstein
• The Only Guide to a Winning Investment Strategy You’ll Ever Need, Larry E. Swedroe
• Asset Allocation, Roger Gibson. This book is my personal favorite. No nonsense asset allocation information - why and how.

Good luck!

Thanks to all that responded, I have signed up for the newsletter.
I still am at a loss on something.
The newsletter suggests Our current TSP Allocation is: and then it gives the percentages.
Am I to do interfund transfers for the amounts that they suggested and change the contributions to be the same.

or am I to simply change the contributions? eg. c xx%, I xx% F xx%?
I am still unsure of what I have read please someone clarify this for me.


SKB

Do both to be most effective, but primarily you will want to do an interfund transfer (an IFT).

Originally Posted by sunkissedbeach

Thanks to all that responded, I have signed up for the newsletter.
I still am at a loss on something.
The newsletter suggests Our current TSP Allocation is: and then it gives the percentages.
Am I to do interfund transfers for the amounts that they suggested and change the contributions to be the same.

or am I to simply change the contributions? eg. c xx%, I xx% F xx%?
I am still unsure of what I have read please someone clarify this for me.


SKB

So just to confirm.

I am to do an interfund transfer like this:

Example
C 20%
I 40%
F 30%
and set the allocations to match this.

That's was only 90%. You need 100% for an inter fund transfer! If you set contribution allocations to 100% G-fund, it's a place holder as Ocean states below, plus you know the amount and when it normally gets there. However there is no hard and fast rule, you can put it as you see fit!

Hi Sunkissedbeach! Welcome - it always nice to have another female particpate in the information exchange; also the repartee, if you will -

SKB,

Good to hear that you just signed up. I think you are in the good hands now. Tom (tspalk) is the site owner and I believe that he also will help you with all the legistic issues if you may have with the newsletter.

As far as the allocations, SkyPiolt is correct that you will concentrate on the Interfund Transfer (IFT). For example, if the newsletter said: G: 30%, F:20%, C: 20%; S: 10%; I: 30%. Just follow that and do your IFT. As for contributions, since it will change each time after your IFT, I would just leave it in 100% G fund as a placeholder.

Hope it helps

Ocean

Hello sunkissedbeach. First of all, i'd like to welcome you to tsptalk. You will learn alot from these people. They are very helpful, patient, and knowledgeable. No one here is going to tell you what to do with your investment but they will all be willing to share what worked for them and which lost them money. We are one big family here.

Stay with us and you will surely learn alot from them (not me;-).

P

Welcome,

I have one of the simplest strategies on the board. I am 100% C fund and a firm believer in dollar cost averaging. My contribution allocation is set at 100% C fund also. I don't plan to do any IFTs until the C fund reaches a price of $17.00 and then the hunt begins. Just my style. Good luck.

SKB,
This is a repeat, but welcome aboard!

Excuse me but,
I'm suspicious that something is out of sync.

Are you looking to buy and hold for the next 15 years? or
Are you looking to get some market savy to become a trader?
What is your intention?

Also, Did you, sign up for the TSP Timing newsletter by Rev Shark?

Respectfully,
Spaf