A very Important Question I need answered please

[Investrite]

Hope this is the right place for this. New here.

I keep investing in a diverse spread of the tsp funds, but keep the balance in the F fund currently. Am I truly dollar cost averaging if the new money keeps buying equal amounts of the C,S & I funds but the balance remains in the F fund?

My thinking is as the market tumbles, my bi-weekly paycheck is dollar cost averaging into cheaper equities. Am I not accomplishing what I wish?

 

[tsptalk]

That is dollar cost averaging - unless or until you make another interfund transfer. You are adding to the C, S, and I funds but when you make your next IFT all of that will get reallocated to whatever you change to.

DCA works best for buy and holders who don't change their allocation.

I hope that makes sense and helps.

(I will copy this over to the DCA thread)

http://www.tsptalk.com/mb/showthrea...tant-Question-I-need-answered-please&p=329629