Help - I think I did something Stupid today!

[Justwant2eat]

I am conservative investor, and do not like taking a lot of risk, but after reading some of the advice on the site, I decided to do a interfund transfer. I did it at 11:30, so I thought I would have had the rest of the day to change my mind. When I went back to the site it said it was to late!



This is the story:

For about 2 years, I kept it:

G Fund 40%

F Fund 30%

C Fund 20%

S Fund 5%

I Fund5%



Today I switched it to:

G Fund50%

F Fund 0%

C Fund 30%

S Fund10%

I Fund10%

I am most concern about the I fund, should I switch it again tomorrow and take my money out of there, I realize I am taking a loss doing this. But I am far from a day trader, I will be content letting it sit. I am 50, and I am in FERS, so I have at least 10 years before I will retire, but would like to retire in 5 if I could make enough money so I can eat in retirement!



Thanks In advance for the advice.

[tsptalk]

Justwant2eat wrote:
I am most concern about the I fund, should I switch it again tomorrow and take my money out of there, I realize I am taking a loss doing this. But I am far from a day trader, I will be content letting it sit. I am 50, and I am in FERS, so I have at least 10 years before I will retire, but would like to retire in 5 if I could make enough money so I can eat in retirement!

Welcome Justwant2eat.

You won't necessarily take a loss since this transaction will not become effective until tomorrow morning, which means you will get today's (Tuesday's) fund share closing prices. That is assuming you made the transfer at 11:30 eastern time. If it was any other time zone, it won't be effective until Thursday.

If you do want to eat during retirement, I'd suggest getting more aggressive ;). Check out the longer term allocation "suggestions" on the bottom of www.tsptalk.com/longer_term.html (http://www.tsptalk.com/longer_term.html).

Thanks for joining us!!
Tom

[Justwant2eat]

Thanks TSP,

Believe it or not I had read that info before I made the decision to move the money, but even the most conservative spread made me nervous. I should add that I also have what I consider quite of bit of money invested with a private broker where anout 60% of my money is in stock mutual funds, and the other 40% is in bonds.

[Rolo]

That 40% bonds would scare me!

Even your new TSP allocation is conservative. In fact, it is more conservative since bonds are more risky now and you eliminated the F Fund and even moved 10% more into cash (G Fund)--mistake? Not at all.

There is risk avoidance and there is risk management. Avoidance is not management.

Keep a decent portion in stocks as market conditions dictate unless you Justwant2eat Ramen noodles. :)

Welcome to the forum!

[Justwant2eat]

Rolo wrote:
That 40% bonds would scare me!

Even your new TSP allocation is conservative. In fact, it is more conservative since bonds are more risky now and you eliminated the F Fund and even moved 10% more into cash (G Fund)--mistake? Not at all.

There is risk avoidance and there is risk management. Avoidance is not management.

Keep a decent portion in stocks as market conditions dictate unless you Justwant2eat Ramen noodles. :)

Welcome to the forum!



Thanks .... Ramen noodles ... he he he ... that's good!

[tsptalk]

Rolo wrote:
Keep a decent portion in stocks as market conditions dictate unless you Justwant2eat Ramen noodles. :)

Ah... Memories ofme old college days - Macaroni and Cheese and Ramen Noodles. Maybe retirement won't be so bad after all. I wonder how much a keg will cost in 15 years. :)

[Pete1]

The allocation you changed to is still very conservative for your age. Don't sweat it.