Thread: Newbie!

Tom wrote:

Obviously this is a very common question and it has been addresses several times on the board but I'll give it to you in a nutshell.

Buy and hold is not a bad strategy. Diversifying is not a bad strategy. Moving your money around is a tough strategy but done right can be worth the trouble. From 2000-2002 the markets dropped dramatically. Sitting by and watching that was too painful for me. I watch the charts and indicators to try to tell meif it is best to be in stocks, or to be out of stocks. Of course we can't always be right, but if you can avoid some of the downside action of a bear market and get in when things start to look better, you can increase your returns.

During bear markets the G and F funds are obiously better places to put your money. The C, S and I funds are the place to be during bull markets. If you can just lose a little less during bears and make all or most of the gains during a bull you are ahead of the game. If you can make intelligent decision on when it is best to be in which funds, don't you think it would be wise to do so? We think, over the long term, we can.

Thanks for joining us.
Tom

Scout11 you will not find much info in the Military section of this TSPTALK site however, you will gain a plethora of knowledge elsewhere on the site:

I would start looking at which funds you are interested in, with relation to what you are willing to risk and with what you would like to gain. How much do you intend to have at retirement, and how comfortable are you going to be with the associated risks.

Scout11 wrote:

I am a CW3 and have 10 yrs in, but have unfortunately, neglected investing and TSP. Can someone give me some direction where to start, and which funds to go with? I didn't start sooner because I thought I was getting out of the military. I know I've wasted alot of time, but I hope better late than never.:shock:

Welcome Scout! Start by getting something churning in your TSP account. 5%, 10%, 15%.. something. Then where you put your money will depend on a lot of things including when you plan to retire.

This site is an on going discussion on which funds we like or dislike at different times. Take a look around and use the search feature at the top of the page to find posts that may answer some of your more specific questions. Or, of course, ask them here.

Tom

Welcome, Scout!

Yeah, max it out if you can (and you will get tax savings, too). Are you enrolled and sitting in G Fund?

Rolo wrote:

Welcome, Scout!

Yeah, max it out if you can (and you will get tax savings, too). Are you enrolled and sitting in G Fund?

I am not enrolled at all. I want to sign up on tuesday. I've been to TSP.gov, but it's difficult to understand. Thats why I'm here.

My understanding is you can put 10% of base pay, and I also get an aviation bonus in June which I can put 100% if I wish. Of the 10% base, what's a good starting allocation into which funds?

Is it as easy as downloading the forms at TSP.gov and sending them back, or should I go seek help on post?

Thanks for the help

Teufel,

Thanks. please refer to the post to Rolo.

My brother is a Marine Capt at Quantico. (ref your icon)

Yes, there are Military TSP forms, very easy, TSP-U-1 I think. Take that to your finance office. If you do it Tuesday, it should take effect by the 1st.

Ya, put all your bonuses in there, too, good show. Allocation? The big question right now is "will the US market be on a downhill slope for most/all of the year?" Check back in a few days, but for now, you can sit safely in G until we see what happens next week. Try 50G/50I when you fill out your form, that way you are "safe" and "invested" for now.

Scout11, I am an active duty GySgt. I have been investing in the TSP for about 2 years now. The bad news for you is that you have to wait for an open season however, you can gain knowledge here prior to the open and have a better understanding of how you want to invest.



I believe there are two open seasons a year, Every 6 mos

off the tsp site

[align=center]Elimination of the TSP Open Seasons: July 1, 2005[/align]
[align=left]Public Law 108-469, which was signed into law on December 21, 2004, eliminates the Thrift Savings Plan open seasons and the restrictions on contribution elections which are tied to open seasons. The Federal Retirement Thrift Investment Board will implement this law on July 1, 2005. After the close of the current TSP open season (December 31, 2004), there will be one more open season, April 15 through June 30, 2005. This means that participants may file contribution elections with their agencies or uniformed services at any time beginning April 15. Through June 30, these elections will be processed under the current rules. Beginning July 1, contribution elections will be processed under the new rules — that is, the elections must be made effective no later than the first full pay period after they are filed. [/align]
Participants must continue to file contribution elections with their agencies or services, and the agencies and services must continue to implement the elections by deducting contributions from participants' pay and reporting these amounts to the Thrift Savings Plan each pay period.

The law does not affect the waiting period new employees covered by the Federal Employees' Retirement System must serve before they become eligible for agency contributions to their accounts. In addition, the law does not affect contribution allocations or interfund transfers, which can be made at any time by using this Web site or the ThriftLine or by submitting an Investment Allocation form to the TSP.



Hope this helps

I was at Quantico, # years with the Marine Corps Rifle Team, Tell your brother Semper Fi

[align=left]I am a CW3 and have 10 yrs in, but have unfortunately, neglected investing and TSP. Can someone give me some direction where to start, and which funds to go with? I didn't start sooner because I thought I was getting out of the military. I know I've wasted alot of time, but I hope better late than never.:shock:[/align]

[align=left]Scout, I've been in the same boat. Lucky for you OPEN SEASONS are going away:^ The easiest way to elect to contribute to the military TSP is through MYPAY. I would MAX your contributions and your special pays. [/align]



[align=left]Which funds to go with?--As you can see, everyone on this site has a different opinion. When I started on this site, I mirrored Tom's moves for a while to get the swing of things. There is a lot of useful information here as well as great individual investors, they will show you the way. Below is a current look at the funds and how they compare. My current position: 100% I By the end of the week, I plan on being 50%I 25%C/S. Welcome Aboard Scout![/align]



[align=left]




Fund
Feb-14-05
Jan-7-05
Difference
%

G
10.74
10.69
+0.05
+0.47%

F
10.52
10.40
+0.12
+1.15%

C
12.88
12.64
+0.24
+1.9%

S
14.53
14.05
+0.48
+3.42%

I
15.57
15.06
+0.51
+3.39% [/align]

[align=center]My understanding is you can put 10% of base pay, and I also get an aviation bonus in June which I can put 100% if I wish. Of the 10% base, what's a good starting allocation into which funds?[/align]
[line]

Sorry, didn't finish previous post. I would definately max the 10% base pay (IRS Limit) and I would Max any other contributions like your flight pay, bonuses, etc ..100% this would help you catch-up. Just don't exceed the max 2005 deffered limit of $14,000.

All,

Thanks so much for the time and information. as soon as I finish this I'll go to my pay. I'm excited about getting this started. I'm sure I'll have some more ques. How long will my newbie forum stay open.

Again thanks

Scouts Out

Matt

You still can't join until the last open season

The Federal Retirement Thrift Investment Board will implement this law on July 1, 2005. After the close of the current TSP open season (December 31, 2004), there will be one more open season, April 15 through June 30, 2005.

Beginning July 1, contribution elections will be processed under the new rules — that is, the elections must be made effective no later than the first full pay period after they are filed.

I could be wrong, but this is off the TSP site. It can't hurt to try.