Allocation Change 2/10/04

[tsptalk]

Allocation Change to 100% G on 2/10/04

(Taken from 2/10/04 market comments)

I was looking for some sort of follow through Monday to Friday's big rally in order to get into more of a stock heavy allocation. When the indexes couldn't sustain any kind of rally I knew I was going back to the G fund. As you recall I was leaning toward going to the G fund in Monday's comments so it didn't take much to persuade me. I mentioned that the S&P 500 needed to break 1143 before we might see a test of the recent 1155 high. It briefly made it to 1144 before sellers came in and it closed at 1139. The small cap fund (up .05) and international fund (up .09) have shown some life again after under performing for a couple of weeks. I'm not convinced yet so I'm in hiding.

[puertorico]

My new money going every week to C.

Now,It's good, that contribution allocations ?Or You has a

better idea where the new money must be ?

Any recommendation is welcome ;)

[tsptalk]

Hi Puertorico-

The new money isn't as significant as your balance when it comes to allocation, especially if you make interfund transfers when your entire current balancewill get moved.

If you want to be in stocks completely, 100% C is not terrible. If you don't plan to make many transfers you might consider adding some S and I fund. Maybe 60% C, 20% S and 20% I. Just a suggestion but not necessary.

Tom

[chicago30]

hi,

great website. i have been in TSP since the military started in nov 2001. i had most of the money in the G Fund until Feb 2004 when i moved it to the C, S, I funds. i currently have 60% in C, 20 in S and 20 in I. i plan to leave it there for a while. i have about 7,000 in there now and only wish they had started this for the military when they did for the civilian force back in 1987.

[tsptalk]

Welcome Chicago! Your allocation sounds like a good long term aggressive approach. If you don't mind a few bumps in the road now and then, you should be fine.

Tom

[chicago30]

tom,

thanks. plan to visit daily. have been spreading the word to some soldiers who don't take advantage of this benefit we have to at least invest in something.

i don't really mind some bumps in the road. i am 35 and don't plan to retire until 60. have been in the military for 16 years and not quite sure how much longer i will stay in. could be 4 or up to 14 more years. also max out a roth every year.

thanks again very a very good site and learning experience.

chicago (mike)