hoffa09,
Welcome. This is a good place to get information and learn. Most folks will have recommendations but no one will tell you to do this or that. That's a choice you have to make and be comfortable with. Good luck.
As the topic states, I am seeking to gain some knowledge on how to manage my uniformed services TSP.
Two years ago I got divorced and unfortunately I had to provide my ex-wife with 50% of my TSP.
Prior to the divorce, I had approx 150k in the account. I needed to take a financial hardship withdrawal in the amount of 80k and I am now paying back the loan over the 5 years. I have been paying back the loan monthly and I will have the loan paid back in May of 2019.
Currently, I have been contributing 5% into Roth TSP L2050 while I am still having to pay the loan.
Am I doing the right thing by keeping my contributions in the L2050? Am I taking a risk by contributing to the L2050 or should I look to move to a more secure fund?
I am set to retire in 2024, if all goes well with the military. I realize that the 8 years will go by before I know it. I recognize that I am late to the game, but I hope to get my TSP to maximum contribution once the Loan is paid off in 2019.
Any advice is greatly appreciated
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hoffa09,
Welcome. This is a good place to get information and learn. Most folks will have recommendations but no one will tell you to do this or that. That's a choice you have to make and be comfortable with. Good luck.
May the force be with us.
Welcome hoffa09! Gaining 2% in the G-fund is not a way to save, in my opinion, especially in a Roth where your gains are not taxed. Many of us here time the market but if you are going to set it and forget it, you really should consider taking on some risk. L2050 is fine, I believe, given your circumstances. Good luck!
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Do you use a paid service to help time the markets? Am I correct that as a uniformed services TSP only allowed two IFT transactions per month? If that it true how do you time the markets when you are limited to two transactions per month.
I would like to learn more about trying to time the markets in order to maximize my TSP and just not set it and forget it and hope for the best by leaving it in the L2050
Thank you for the input
Yes, only 2* IFT's (interfund transfers) allowed per month. Not ideal, and it makes it much tougher, but it is still possible to time the market.
Take a look at our Autotracker where other TSP Talk members are inputting their transactions in a simulated TSP account...
TSP Talk AutoTracker
If you are interested in what TSP Talk is all about, here's a good place to start... TSP Talk - Get Started
* After your 2nd IFT, you can still move money into the G fund at any time.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Emotions should never play a role in one's investing strategy!
No to Greed...No to Fear!
http://share.robinhood.com/mariloc1
Welcome to the Forum hoffa09.
Best of luck with your investments.
Norman
I think last year depended on when you started because on whole, with the S&P gaining only 1.46% and the S and I funds being down, our services did pretty well...
TSP Talk Market Historical Returns
The toughest part for subscribers seems to be sticking with it after a weak period because then they tend to miss the good streaks. Human nature.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Emotions should never play a role in one's investing strategy!
No to Greed...No to Fear!
http://share.robinhood.com/mariloc1
Try to learn more about investing before you follow the lemmings off the cliff. The L2050 approach is fine in your situation, no one can time the market and a long-term approach balancing your risk aversion and your means is what any good financial planner would recommend. Plenty of good investing books out there, contribute as much as you can and don't get caught up in daily market watching. Good luck.
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