daf307 Account Talk

**daf307** · 08-21-2009, 01:43 PM

Originally Posted by Boghie

daf307,

That is what BirchTree was talking about. However, don't forget the 'rainy day' reference. Also, one should take into account the years until your retirement funds must be used and the general trend of the market. Birch is a bull of bulls. And, we are in a bull market - or, maybe an internal bull in an overall bear. Either way, grab what you can when you can.

Personally, I would recommend reading some of Ric Edelman's books ('The Truth About Money', and 'The Lies About Money' among others) and Ray Lucia's books. That 20% laggard in G/F may give you offsetting gains during a downturn. It will soften a blow. However, how many once in a lifetime crashes does one expect in a lifetime???

Nothing but G helped in October, November, and March though...

I still have 9 years before I retire from the AF, I should probably take the 20% and make it work for me right?

**daf307** · 08-21-2009, 01:44 PM

Originally Posted by nasa1974

I was a missile systems analyst specialist. I get on the FEW public website once in awhile to keep in touch. What is an AD?

AD is active duty, I am a Missile Alert Facility Manager here

**alevin** · 08-21-2009, 01:47 PM

Originally Posted by daf307

Yes I am, I've been here since Jan 06 and have enjoyed it very much. I have lots of good friends here and have been able to the wonders of nature here. Thanks!

Many wonders of nature in your neck of the woods. Enjoy to the hilt, just don't say you're from originally from Colorado (whether you are or aren't, just don't, life will be easier when you talk to the longtimers).

**WorkFE** · 08-21-2009, 01:49 PM

daf307,
9 years till AD retirement, that's great but what is your years till actual retirement?
That other 20% should go where your risk vs. reward comfort level tells it to go. I personally, this far out from retirement, am extremely agressive in all of my investing. Of course you could keep it safe and if we do get a big correction to the down side you'll have a little stash of dry powder to dump in at lower prices.
Thoughts?

**Birchtree** · 08-21-2009, 01:51 PM

And make sure you're not dollar cost averaging your money into the G fund. I have all mine going into the C fund. My Army daughter has her's going 75C and 25I.

**daf307** · 08-21-2009, 01:55 PM

Originally Posted by WorkFE

daf307,
9 years till AD retirement, that's great but what is your years till actual retirement?
That other 20% should go where your risk vs. reward comfort level tells it to go. I personally, this far out from retirement, am extremely agressive in all of my investing. Of course you could keep it safe and if we do get a big correction to the down side you'll have a little stash of dry powder to dump in at lower prices.
Thoughts?

Actual retirement will probably be around 40 years from now. Can you still put money into TSP after you leave the military?

**daf307** · 08-21-2009, 01:56 PM

Originally Posted by Birchtree

And make sure you're not dollar cost averaging your money into the G fund. I have all mine going into the C fund. My Army daughter has her's going 75C and 25I.

Thanks for the advice I appreciate it. I'm going to log into TSP this morning and move stuff around, just haven't finalized my numbers yet though.

**Birchtree** · 08-21-2009, 02:02 PM

Any Federal position will keep you active in your TSP account - only then you will DCA every payday rather than monthly. One other thing if I may - never fear a little pain. Pain can often be a blessing when you are investing. It wasn't that long ago I personally had a negative 47% on the tracker and now I'm close to positive 15% by being a buy and holder. Always keep the money going down the rabbit hole rain or shine because your objective should be to accumulate as many shares as possible. Have fun.

**WorkFE** · 08-21-2009, 02:16 PM

That money, like a 401K, can follow other retirements. Rollovers, if you decide to take a path away from Gov't Service.
Be happy you can contribute on AD. The old timers had to invest in personal accounts or wait until after retirement to contribute to what is really a company 401K. You get a headstart. Great Job.

**nasa1974** · 08-21-2009, 06:22 PM

Originally Posted by daf307

AD is active duty, I am a Missile Alert Facility Manager here

I remember the few times we had to spend the night at the MAF (we called it the LCF back then) because we didn't have enough time in our work day to get back to base. The manager would wake up the cook to make us breakfast. A few good memories.

Do the vehicles have GPS's in them now or do you still depend on the map books?

**daf307** · 09-03-2009, 05:08 PM

Changed my distro to C-65, S-20, and I-15...did it last week but forgot to update it on the automated tracker...we shall see how things go this month...

**Boghie** · 09-03-2009, 06:02 PM

Originally Posted by daf307

Changed my distro to C-65, S-20, and I-15...did it last week but forgot to update it on the automated tracker...we shall see how things go this month...

DAF307,

You sure took BirchTree to heart

It is a very, VERY good distribution. I do 40/30/30 on my distributions.

Oftentimes, there is a difference between a chosen account allocation and a chosen paycheck distibution. You dollar-cost-average (DCA) using your paycheck distribution (contribution). My opinion is to NEVER buy bonds or cash with paycheck contributions. Birch made that clear as well.

After you build a little nest egg than trying to set your existing assets to an allocation becomes important. The 'G Fund' can be treated as cash - and as you near retirement (say 3 years out) you want more cash in hand to avoid the October 2008, November 2008, and early March 2009 issues. The 'F Fund' should be a stabalizer - and normally it should go up if C/S/I dump. Skittish folks (professionals and individuals) move to bonds when equities scare them. The 'C Fund' should offer stable growth at average of 9% a year, the 'S Fund' a far less predictable 10%, and the 'I Fund' can be thought of as an international 'C Fund'.

Back to allocation of existing holdings - I strongly recommend Edelman's and Lucia's books. 'The Lies About Money' is awesome. At your age I would tend to allocate almost everything into C/S/I - maybe even the same as your contribution percentage. You can lose (like BT with a -47%) in the short term, but over a 40 year

time horizon you will win big time. Investing 'safe' may not even cover inflation - and you will be dining on Alpo at 65.

Enjoy