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Thread: L2040 time to buy?

  1. #1

    Join Date
    Dec 2008
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    Cool L2040 time to buy?

    I have just recently been hired so I have 30 or so years to go before retirement. I sined up for the L2040 since it was supposed to manage your funds for you based upon your approximate retirement date. I started in Sept. and shortly there after, the market began to crash. I increased my contributions significantly. I know that lower stock price means more shares for the money, but aren't some businesses going out? Since I am in the very early stages of my career and investing, I can stomach volitility, but did I do the right thing?


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  3. #2

    Default Re: L2040 time to buy?

    Quote Originally Posted by oncken View Post
    I have just recently been hired so I have 30 or so years to go before retirement. I sined up for the L2040 since it was supposed to manage your funds for you based upon your approximate retirement date. I started in Sept. and shortly there after, the market began to crash. I increased my contributions significantly. I know that lower stock price means more shares for the money, but aren't some businesses going out? Since I am in the very early stages of my career and investing, I can stomach volitility, but did I do the right thing?
    oncken,

    Welcome to TSP talk. You will find most people on this board avoid the L funds, but these funds can diversify your holding automatically for you. These funds were designed to buy and hold. All I can say is to read, read, and read some more. Tom has excellent commentary each day and numerous posters have great ideas on investing in the individual funds.
    Good luck

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  5. #3

    Join Date
    Mar 2006
    Location
    Peoples Republic of Ohio
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    2,373

    Default Re: L2040 time to buy?

    Quote Originally Posted by oncken View Post
    I have just recently been hired so I have 30 or so years to go before retirement. I sined up for the L2040 since it was supposed to manage your funds for you based upon your approximate retirement date. I started in Sept. and shortly there after, the market began to crash. I increased my contributions significantly. I know that lower stock price means more shares for the money, but aren't some businesses going out? Since I am in the very early stages of my career and investing, I can stomach volitility, but did I do the right thing?
    Welcome oncken,

    You did fine. If I were in your shoes, I would've done the same thing, until I learned more about how TSP works and you educate yourself about managing your funds yourself, at which time you may decide to alter the distribution of your funds differently or not. But until then the L2040 is just fine for your timelime. This is a great place to learn all of this, because these guys and gals know their stuff and will be happy to assist. It's just Christmas time and a lot of folks are away.

    Merry Christmas,
    CB
    Last edited by CountryBoy; 12-23-2008 at 02:59 PM. Reason: verb tense
    “Most men and women will grow up to love their servitude and will never dream of revolution.” - Huxley’s Brave New World

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  7. #4

    Join Date
    Dec 2008
    Location
    San Antonio, TX
    Posts
    10

    Default Re: L2040 time to buy?

    Since the market is down and I have a long term retirement horizion, should I look into putting a percentage of my contribution allocation into something like the C fund? From the very little I know about the market, it seems like a good time to pick up lots of C and I shares for the price.

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  9. #5

    Wink Re: L2040 time to buy?

    You are doing the right thing. As a long term investor this is THE best time to invest. The short-term problems will barely be a blip on the chart when taking a 20-30 year horizon. As long termers (myself included) it's best to continue dollar-cost averaging the same way as in a good economy.

    So keep accumulating those shares because the elevator ride back up will be incredible!

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  11. #6

    Default Re: L2040 time to buy?

    I would tend to disagree about the 2040. I would put 100% of my money in the market. I am 50% S, 25% I and 25% C. The market is so low, when it goes up, it will probably be faster than you think.

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  13. #7

    Join Date
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    Upstate NY
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    Default Re: L2040 time to buy?

    By what metric is the market low?

    Don't be fooled by low prices on a stock chart. Are shares of BAC and C low enough to buy yet?

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  15. #8

    Default Re: L2040 time to buy?

    Unless you thing the entire market will colape, then this is the time to get in. They are invested in a broad group of companies, some wont be good, but most non financials/ non insurnace stocks are undervalued based on their P/E ratio and their balance sheet vs market cap. Unless you think the S&P could possible drop another 25%, now is the time to get in. It may not go up for another 6 months, but where else to park your money. The G fund isnt paying anything now. The S fund I think has the best prospects of increasing double digits this year.

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