Thread: C Fund Allocations

tsptalk wrote:

http://www.tsp.gov/rates/share-prices.html

I go to that page and enter the share prices in Quicken, which displays my current balances, cost basis/cumulative return,and daily % changes. All other funds/stocks update automatically. It's a nice tool.

I've been 100% C for over 10 years, that looks like 13.34% avg. to me. Someone please convince me to move.

Take the past 30 years (roughly the lengh of employment, no?), an equal C, S, Iweighting would destory 100%C. That wasnt so hard :-)

Azanon

If you know the S&P 500 will outperform bonds, small caps, and international equities over the next 10 years, then you should stay fully invested in the C Fund.Since I can't predict the future,I'm diversifying across all of the funds - G, F, C, S, and I.In other words,I'mhedging my bets, hoping thatasset diversification and the non-correlation ofasset classes will result inrelatively high returnsata reasonable level of risk.

How much did you make from March 2000 thru October 2003??? That should convince you to learn how to read charts and move your funds around atleast once in awhile. While you were trying to get back to the level you were at in march 2000 (how long did that take?) the people who move their funds around were increasing their retirement funds not trying to get even.

tsptalk wrote:

Great discussion guys. Youhad me curious soI calculated the cumulative returns going back to 1988 up through 2003. Of course the S and I funds were not available throughout this period butthe indices were.

G Fund F Fund C Fund S Fund I Fund20% Each Fund

185.28% 239.06% 524.42% 499.20% 116.15% 311.69%

Two comments. The international fund did extraordinarilywell in the early and mid-eighties whichit is not included here. Also, the 1987 crash occurred shortly before these returns.

Tom

Tom, are these accurate percentages? The G fund is averaging over 12% a year? I've only been in the TSP funds a short time and I've never seen over 5%. Just curious.

mlk_man wrote:

Tom, are these accurate percentages? The G fund is averaging over 12% a year? I've only been in the TSP funds a short time and I've never seen over 5%. Just curious.

I believe they are. It's compounding that does that. It's like if you make 20% a year for 5 years...

$100 x 1.2 x 1.2 x 1.2 x 1.2 x 1.2 = $249
You made 149%, not 100% (20% x 5) as you might think

I could be wrong. Here's the file if you want to check the calculations. Let me know if you see a problem. Thanks...

http://www.tsptalk.com/returns/Prior_Fund_totals.xls

tsptalk wrote:

I believe they are. It's compounding that does that. It's like if you make 20% a year for 5 years...

$100 x 1.2 x 1.2 x 1.2 x 1.2 x 1.2 = $249
You made 149%, not 100% (20% x 5) as you might think

I could be wrong. Here's the file if you want to check the calculations. Let me know if you see a problem. Thanks...

DOH! Must be Monday, didn't even think of the compounding.