Fireman1953's Account Talk

[fireman1953]

I am considering making changes in the way my TSP is invested and had a question before I make any changes. I have most of my money in the L2020 fund. The recent wild swings have left me uneasy as I am only about 2 years from retirement. The price per share for 2020 is around $15 and change as of late. If I wanted to move my money to, say, the F fund where the PPS is $14 and change, would the total amount in my account drop due to a lower price share or would the TSP simply purchase more shares so my account balance remain the same?

 

[RealMoneyIssues]

I am considering making changes in the way my TSP is invested and had a question before I make any changes. I have most of my money in the L2020 fund. The recent wild swings have left me uneasy as I am only about 2 years from retirement. The price per share for 2020 is around $15 and change as of late. If I wanted to move my money to, say, the F fund where the PPS is $14 and change, would the total amount in my account drop due to a lower price share or would the TSP simply purchase more shares so my account balance remain the same?

Good luck with the changes to your investing model. There are a lot of folks to learn from here !!

You are correct, your value does not change when you do an IFT from one fund to another.

For example:
Sell L2020 - 1000 Shares at $15 so you have $15000 in your TSP
Buy G at $10, so you get 1500 shares (for a value of $15000)

Clear as mud?

 

[fireman1953]

No, understand it clearly. I was thinking that's the way it works, just wanted to be sure. I know a lot of folks are like me, T-bat baseball players in the major leagues when it comes to understanding investing. And like many, I just selected a fund at the beginning and let my $$$ ride there. I have become more aware of the way it performs as I get closer to needing it. I want to be able to walk away from work when I want and want the security of knowing my nestegg is doing well. Muchos Gracias.