Confused about shares

[Lostdawg]

I'm just getting into TSP, so I haven't lost anything yet. Accept time, but we won't go there.
Everyone I talk to says you want to accumulate shares and that is the most important thing. I understand that idea. The more shares you have, the more you earn for each increase per share. But one guy keeps arguing with me that I don't understand. Telling me I should be moving my money out of G fund and buy C and S. If I don't feel the bottom has been reached why in the world would I want to buy funds that I think are still going down? I understand you want to ideally get them on the bottom, but that is not part of the problem I'm arguing with him about.

hypothetical example:
I have 10 shares of "C fund" worth $10 each ($100). I move 100% over to "I fund" that cost $20 a share. I now have 5 shares of "I fund". The dollar value that moved out of "C fund" and into "I fund" is still the same amount (in this example $100). While I now have fewer shares, the value is the same at the onset and completion of the transaction, right?

If the "C fund" was going down for awhile and bottomed at $5 a share. At the same time the "I fund" rose to $30 a share. I then move 100% of "I fund" (now $150) back into "C fund" and purchase 30 shares of "C fund".

Just trying to make sure I have not flawed what seems very basic to me.

Thanks for any help to clear this fog.

 

[ChemEng]

Sounds like you got the idea! The key is that if you make your Transfer before noon Eastern, you will sell your shares at the prices determined at the end of the day and purchase shares at the price determined at the end of the day.

Welcome to the boards.

 

[James48843]

Welcome to the Board, Lostdawg.

Yes, if you feel we're not yet at the bottom, then "G" is perfectly fine for you. You do need to remember, however, that no one can call the bottom perfectly, so if in fact it DOES move higher, you blow your opportunity.

that's all part of the game. Deciding when to buy, sell or hold on for dear life.

It's YOUR money, so you need to decide what is best for you.

The L-Funds might be a good choice for you too, if you are not confident yet on where to put your money. Different people have different takes on the L-Series, but personally, I have been doing this for a while, and found it challenging to beat the L funds for returns. If you have the opportunity to watch daily, you CAN do it, but it isn't easy, especially with the limits they have now imposed on us.

Welcome aboard. And best of luck in your new Federal career. Please feel free to take part in the message boards- we're all in this together!

 

[Lostdawg]

Thanks guys for the quick replies. Now that the doubt's removed, I can venture into the maze. Off to read some more.
Much appreciated.

 

[james_smith]

It's not about accumulating shares. It's about maximizing returns while controlling risk. Right now, the returns on the stock funds are negative. That means you should not be "accumulating" them. Wait until the returns turn positive, then think about it.

 

[Diesel]

Good info and good question. Learning more every day.

 

[Mike vB]

I just asked a similar question HERE

I think LostDawg and I are asking kinda the same question as I did - sorry I didn't see this first...

But I think there's 2 main issues:

Part 1 - accumlation / buying the most amount of shares possible (what my question asks)

Part 2 - then IFT'ing that accumulation of shares into the fund you think has the most upward mobility (for those not near retirement) or in a fund with safe movement (for those closer to retirement/pulling monies out)

Thoughts please