TSP investments and strategies

[BuzzH]

Unfortunately, you did not have a choice. It is, what it is, but it is a fine system, if you take an interest in the part that you have control over. I went to a retirement seminar one time, and they used all of my data, comparing the two systems. Based on what the TSP was doing at the time, I would have been some dollars ahead, had I switched to the FERS. It was not substantial enough to have ever convinced me to switch, though.

I don't know...I would have to see the numbers, but the pension gain 1.5-2.0 percent per year (up to 80% of your high 3) under csrs is wayyyyy better than FERS. That's flat guaranteed income plus COLA as well.

FERS is 1 percent per year of service for your pension (years of service x 1.0 and 80% of your high 3)...there is the SS offset and TSP to supposedly make up the difference.

That's where I would be interested in looking at the numbers. A big part of your retirement under FERS is going to be dependent on SS and how much money you invest in the TSP and ultimately how much return on TSP investment.

IMO/E, anytime the .gov comes out with just about anything to do with retirement and changes a retirement system, more likely than not, its not to benefit the employee...

 

[JLDemo]

Always interested in TSP conversations, I'm civil service as well and not anywhere near as educated as I need to be on this subject. My traditional TSP is all in 2050 L fund and is doing great, I have Roth as well that is split in the S&C funds, also doing well, I think. How often do you fellas switch funds? Any news letters or anything informational you follow to trigger any type of TSP movement?

 

[mtmiller]

My traditional TSP is all in 2050 L fund and is doing great, I have Roth as well that is split in the S&C funds, also doing well, I think.

I don't think you have different allocations based on Traditional vs Roth.

Traditional vs. Roth TSP Accounts

Since 2012, we have been able to contribute to a Roth TSP as well as the longstanding Traditional TSP. This does not mean that we have two TSP accounts if

www.fedweek.com

Check out 5th paragraph.

BTW, in 2019,
L2050 - 23.33
C - 31.45
S - 27.97
I - 22.47

10 year C - 13.59
10 year S - 13.08
10 year I - 5.85
<10 year L50 - 9.51 (inception date Jan 31, 2011)

 

[sbhooper]

I don't know...I would have to see the numbers, but the pension gain 1.5-2.0 percent per year (up to 80% of your high 3) under csrs is wayyyyy better than FERS. That's flat guaranteed income plus COLA as well.

FERS is 1 percent per year of service for your pension (years of service x 1.0 and 80% of your high 3)...there is the SS offset and TSP to supposedly make up the difference.

That's where I would be interested in looking at the numbers. A big part of your retirement under FERS is going to be dependent on SS and how much money you invest in the TSP and ultimately how much return on TSP investment.

IMO/E, anytime the .gov comes out with just about anything to do with retirement and changes a retirement system, more likely than not, its not to benefit the employee...

You are right about that. The dems have tried to rob the CSRS system before, but I don't think that they have gotten it done-YET! Changes to Social Security and retirement systems never benefits anyone, but congress.

 

[JLDemo]

Traditional vs. Roth TSP Accounts

Since 2012, we have been able to contribute to a Roth TSP as well as the longstanding Traditional TSP. This does not mean that we have two TSP accounts if

www.fedweek.com

Check out 5th paragraph.

BTW, in 2019,
L2050 - 23.33
C - 31.45
S - 27.97
I - 22.47

10 year C - 13.59
10 year S - 13.08
10 year I - 5.85
<10 year L50 - 9.51 (inception date Jan 31, 2011)
[/QUOTE]
I do have separate contribution percentage to both the traditional and Roth. But that's as far as my understanding goes, I guess I'll have to look again at where they're allocated, I could've misspoke on that part. My understanding isn't that great of the system.

https://www.tsp.gov/PlanParticipation/EligibilityAndContributions/TaxTreatment/index.html

 

[Talk2elk]

I prefer the simplicity of the Life cycle funds, mine is in the 2050 with 12 years to retirement. Trying to stay aggressive for at least the next 6 to 8 years.

 

[brownbear932008]

BTW, in 2019,
L2050 - 23.33
C - 31.45
S - 27.97
I - 22.47
[/QUOTE]

Every time I see this I could kick myself in the butt for getting nervous over the trade deals and sitting in the G fund too long. Missed out on some nice gains. I still can't complain.
I also rode the L funds for several years until I figured out I was missing out on some great gains. Honestly a good financial advisor that understands TSP is worth their weight if you don't have a nice network or someway to get through things. Even then folks get nailed when things go south in a hurry. 2008 really got some folks that was just before my time. There are a few guys in the office that has advisors and it has done them well. As a measly topped out 9 I can't seem to afford such.

 

[1_pointer]

My allocations are split between S and C right now. Now if I could just keep my hands out of that cookie jar... Need to more strongly consider the Roth option. Paying taxes on the seed vs crop seems like a better strategy, but I'm generally uneducated and somewhat reticent to change when it comes to finances.

Just wish I would have maxed out my contributions from day 1! Thought I needed the money at the time and haven't been able to adjust to where I'm putting in as much as I'd like to be.

 

[sbhooper]

My allocations are split between S and C right now. Now if I could just keep my hands out of that cookie jar... Need to more strongly consider the Roth option. Paying taxes on the seed vs crop seems like a better strategy, but I'm generally uneducated and somewhat reticent to change when it comes to finances.

Just wish I would have maxed out my contributions from day 1! Thought I needed the money at the time and haven't been able to adjust to where I'm putting in as much as I'd like to be.

I knew a number of people that did not even max out what the government would match. They gave away a lot of free money.

 

[Sytes]

I knew a number of people that did not even max out what the government would match. They gave away a lot of free money.

Always an enlightening conversation... The rare occasions this crossed my path seemed to hold a youthful entry into the Federal service.

 

[Mainewoods]

Probably like others, I had to take TSP loans out for one reason or another. First, was to pay off the ex wife, and second was to buy a camp in Vermont. Both very good investment, haha!!

 

[T Bone]

C, S, and I here. 12 years to go.

Hoping for 8% average.

 

[Sytes]

Who is doing what with allocations during this drop?

 

[NDGuy]

Who is doing what with allocations during this drop?

Not doing shit, don't try to catch a falling knife.

 

[BuzzH]

Who is doing what with allocations during this drop?

Continuing to buy...

 

[Sytes]

TSP Talk - Market Commentary

TSP Thrift Savings Plan Talk - TSP Talk provides TSP fund allocation information and help for government employees and military personnel participating in the TSP (Thrift Savings Plan) program. In TSP Talk you will get information on each of the TSP funds including market analysis, TSP fund...

www.tsptalk.com

We're certainly not at the same level of selling as 1929, but the blinded sided comment seems to ring true at this point. Our TSP Talk Plus subscribers know that we've been out of stocks completely in our TSP since Feb. 21, but to be fair, we've been overly defensive in our allocation for some time because of the warnings signs we've been seeing, and we missed a lot of the December and early January rally, but the F-fund helped this year along with some quick in and out trades in the stock funds, and we're doing just fine. But now we're just itching to do some buying.

I value Fed Trader's (Pritchard) for the common best course experienced opinions shared and agree with his review.

The Fed Trader

The Premier Website Dedicated to TSP Allocation, Investing, and Market Analysis

www.thefedtrader.com

With the hypothesis that the flu and the coronavirus are similar, it is important to note that investment decisions should come with the awareness that flu cases subside in April:

Being that we are soon entering March, I see no reason to panic-bail out of stocks and into safer investments such as the G-Fund, as I see the coronavirus situation as short lived. Longer lasting economic impact may indeed occur, however it is not known what, if any, effect, this will have (long term) on the stock markets.

For now, my TSP allocation remains unchanged.

Lets hope that April gets here soon, and that the coronavirus cases start to subside.

As a more active trader, not near a guru as Bill though keep a steady 10-20% return, I've pulled my C and S and parked the $ in the G/F to minimize loss. This Monday seems a hot for Market Analysts as a pivotal point for this upcoming week's trend, It's a simple allocation swap done within a minute and a simple 1 minute swap back. Basically it stacks TSP $ into a holding bay until the weather subsides then released back once the market moves as desired.

 

[Sytes]

Not doing shit, don't try to catch a falling knife.

A great read that matches your perspective.

Becoming a TSP Millionaire: Don't Try to Time the Market

With stocks on track for the biggest weekly losses since 2008 - the TSP included, it might seem counterintuitive to consider how one could become a TSP

www.fedweek.com

 

[WyoDoug]

I have a retired federal civil service and drawing on my TSP now. As far as investment, my main recommendation is do not put all your eggs in one basket. Put some in higher risk/high yield but put a significant portion into low risk mutual fund investments. Strategy depends on how soon you plan to draw and what kind of return you want. I think Fidelity Investments still runs the TSP program don't they? Whoever it is, talk with one of their advisers. It's worth the money to get an expert involved.

 

[Sytes]

Was asked about process to change TSP funds couple times. Figure this works best. Of course, I am not a financial advisor of any sort. You make your decisions as you find best for you. TSP along with other Fed TSP websites suggest you remain or at least speak with a financial advisor prior to changing your funding strategy. Enough of the disclaimer.

Using a generic example:

You have $500k in TSP. Your bi-weekly TSP is $750

To change your current allocations going forward:

Click the "Contribution Allocations" and re-allocate as you desire. Beginning your next pay and moving forward, your $750 (+ matching) rolls into your new allocated selections. This does not touch your $500k current investment structure.

To change your total funds :

Click the "Interfund Transfer" and allocate as you desire. This moves your entire $500k from your current investment structure and positions it as you select moving forward.
I believe Interfund Transfers may only be changed twice a month... though don't recall exactly.

 

[VikingsGuy]

Right now the index is about 55% US and 45% intl.

One little reminder regarding effective US/intl split is to remember all the big players on S&P500 and similar indexes are heavily invested outside US so be careful not to unintentionally overweight international - you kinda have to over-bias US to reach your actually desired ratio.