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Thread: Preserve TSP Account during downturn

  1. #13
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    Default Re: Preserve TSP Account during downturn

    Quote Originally Posted by Rod View Post
    My payday contribution always always always gets allocated to the (G) Fund.

    Then I allocate it out from there, at my convenience.

    I sure hope everyone is doing it this way, because what if your payday contribution happens to be "deposited" into the market on a bad day???

    If so, then there goes your payday allocation!

    DOUBLE CHECK THOSE CONTRIBUTION ALLOCATIONS!!!
    Wow. Thanks for making that really clear, Rod.

    I wish I had read it before noon Friday, although I did put more into G from my contribution allocation, but not enough. I had it 100% G for years, but had changed it to spread across the board and only 20% G after trying to decipher what was the best method after reading on the board here. I've been reading back threads, but this is the first time I am understanding much better why G is the safest, as far as when pay contribution is deposited. Possibly more bad timing as I also jacked up my contribution % amount the last 2 pay periods...

    I'll put it back to G, or mostly G. Useful information but so far I am acting too late, opposite, with my tsp account transactions; or just out of synch with the larger system.

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    Default Re: Preserve TSP Account during downturn

    I agree you need to preserve assets, but that time was earlier this year. Personally, I thought the big downturn was coming last year, but I was wrong. I lightened up in stocks by 20% the end of last year, and have 35% in stocks and 32% in cash now. I am buying stock funds slowly, getting lower prices. I've taken losses, but that is part of the investing for the long haul.

    The best way is invest contributions into the TSP equity funds, or L funds. Be greedy when others are fearful, while prices are low. In the long run the "buy low" approach will always win out. NOW IS THE TIME TO BUY, NOT SELL. You do this by putting new money into the stock funds, not the G fund.

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    Default Re: Preserve TSP Account during downturn

    I agree 100% with EW. With 30 year until retirement, you can buy shares every 2 weeks, while the price of shares are down and if markets continues going down that will allow you to pick up more shares each payday.

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    Default Re: Preserve TSP Account during downturn

    When I rebalanced last week, I wound up buying a thousand shares of C-fund (for example) for $10+ that I had sold in June for $16+. This improved the cost-basis for the whole portfolio.

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    Default Re: Preserve TSP Account during downturn

    Quote Originally Posted by Rod View Post
    My payday contribution always always always gets allocated to the (G) Fund.

    Then I allocate it out from there, at my convenience.

    I sure hope everyone is doing it this way, because what if your payday contribution happens to be "deposited" into the market on a bad day???

    If so, then there goes your payday allocation!

    DOUBLE CHECK THOSE CONTRIBUTION ALLOCATIONS!!!
    Rod or others,

    This is interesting and sounds like it makes sense, but I'm trying to visualize it. Can you or others go a little more in detail as to why this is a wise technique?

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    Default Re: Preserve TSP Account during downturn

    8 percent, I think it's a good idea to have your contributions going to the "G" because you can use the $ in the "G" to DCA into the Market at the appropriate time, buy low. If you notice that the market is trending upward and the indicators are over bought that is the time to sell (depending) not to buy. It's a great tool to have that money in cash and buy at the best time.
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    Default Re: Preserve TSP Account during downturn

    During a downturn, yes into G with contributions, if you can identify the downturn. It's still a matter of timing. I currently spread my contribution across all the equity funds and L funds. It works out to about .03% each into the 8 funds, allowing me to 'Squalebear up' , unlimited IFTs<1%, +.97% into each fund , about 6% into equities after I've used my 2 monthly IFTs.

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    Default Re: Preserve TSP Account during downturn

    What about changing allocation based on current trend. No limit on that. yet?
    <*(((><

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    Talking Re: Preserve TSP Account during downturn

    Quote Originally Posted by FUTURESTRADER View Post
    It works out to about .03% each into the 8 funds, allowing me to 'Squalebear up' , unlimited IFTs<1%, +.97% into each fund , about 6% into equities after I've used my 2 monthly IFTs.
    Shhhhhhhhhhhhh !!!!!! Someone might be listening !
    My thoughts of future market events are strictly my gut feelings and have nothing
    to do with actual knowledge or experience concerning the Stock Market or Investing.

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