Hello

[chezhoy]

This is my first year of investing in the TSP. I was wild about moving my money all around but settled down. I invest 10% of my pay...currently $3k per year (which will rise every year). Here's my portfolio: 45% I Fund, 30% C Fund, 25% S Fund.

I am a nut about investing and still learning the ropes. Jim Cramer is my hero and that is one reason I settled down a bit. I was on his show last week for the Lightning Round...cool guy. I highly recommend Stay Mad For Life. I am over halfway through it and read it every chance I get...you could say I am becoming an investing junkie. When nothing else is on TV, it's usually CNBC or Bloomberg Television. I think it's really fun to invest in stocks and taking the time to do the homework on them. I like the energy sector; I have some shares in Evergreen Solar (ESLR) and Pacific Ethanol (PEIX). I think they will take off in the future (or at least I hope they do). ESLR beat it's 52 week high the other day.

I say it's better to start investing at 30, like me, than to wait any longer or not invest at all.

Happy New Years!
Scott

 

[nnuut]

Welcome to the board chezhoy, studing is great, wish I had done more of it!!
Norman

 

[tmc1045]

Could agree with you more...Jim rocks!

 

[James48843]

Welcome aboard.

I bought evergreen solar about three years back, when the expanded their production line up in -where was it? Mass.?

Nice piece of the future.

As for your model portfolio, you say you have 45% I Fund, 30% C Fund, 25% S Fund.

Let me give you this word- The I fund is nice, but it has it's downside as well. It's done very nicely recently. But a change in the direction of the dollar (as we've seen in the last month) could signal a time for a readjustment.

If your plan is very long term, I would consider beefing up the S and C a bit, and paring back on the I. "I" has had a good run for a while, but there are times when the I falls short, and we may be moving in that direction over the next couple of years. If you split it 33/33/33, or even 40 C, 40 S and 20 I, you probably will get a better return over the next three years or so, at least in my foggy crystal ball. I think we're going to get a hit on the I soon- just based on long term historical information.

The advice of "set it and forget it" in the L2040 isn't that bad of advice, either. I know that I work my tail off (at age 47, and pretty risk tolerant) to be able to beat the L2040. I have been doing it, but it's taken a LOT of work to do it. And in market downturns, especially, the L's holding a little G and F have greatly helped it's return compared to a pure stock play.

Anyway, that's my 2 cents.

Learn all you can.

Absorb information. Become a sponge. Watch others. And develop your own ideas of where you want to be.

 

[chezhoy]

Thanks James. I just looked at the share prices on the TSP homepage and the C has gone up $0.58, S $0.70, and I $0.05 since 27 Nov. I see what you mean and do think it is a good time to adjust. I know when the I hits, it hits big...but shares cost more. I'd rather have $1 gain on the C for example because I'd have more shares...just a hypothetical if each went up $1 the same day...it's almost not a bad idea to go 50/50 with the C/S.

Take out today because of the assassination of Bhutto and C was up $1.05, S was up $1.26 and the I was up $0.23 from 26 Nov to 26 Dec...I'd say the C/S are doing very well. Even with oil up, financials down, tech is doing well...returns are good overall for covering an index. I think it's worth the switch. Remember, overseas interests are pumping money into the US. Didn't Abu Dhabi just give or is going to give Citi money (just an example)?

Yep, Evergreen is in Mass. I was going to jump on it last week when it was $16...now it's about $18...but when solar takes off...look out. I was just reading AF Times and the C-17 and B-52 can you fuel made w/coal...but they only use it when flying in the US, not overseas. They were talking about more bases getting solar panels like Nellis has. I really thought about email Evergreen Solar so they can keep an eye out when it comes time to but in bids. Pacific Ethanol may be huge in a few years. They have plants along the west coast. With Bush signing this bill for more domestic dependency we may see energy stocks take off.

I have a hunch about these...if I am wrong so be it. But a little over a year ago, Chipotle Mexican Grill (CMG), whom I love dearly and eat at quite often, went on the market at $19 a share. My buddy and I wanted to get in, maybe $200 worth each, about 10 shares...well, the stock is worth $150 today. We are still kicking ourselves for that. Look at Apple...$70 or so a share earlier this year and it just crossed the $200 threshold...wow!

Welcome aboard.

I bought evergreen solar about three years back, when the expanded their production line up in -where was it? Mass.?

Nice piece of the future.

As for your model portfolio, you say you have 45% I Fund, 30% C Fund, 25% S Fund.

Let me give you this word- The I fund is nice, but it has it's downside as well. It's done very nicely recently. But a change in the direction of the dollar (as we've seen in the last month) could signal a time for a readjustment.

If your plan is very long term, I would consider beefing up the S and C a bit, and paring back on the I. "I" has had a good run for a while, but there are times when the I falls short, and we may be moving in that direction over the next couple of years. If you split it 33/33/33, or even 40 C, 40 S and 20 I, you probably will get a better return over the next three years or so, at least in my foggy crystal ball. I think we're going to get a hit on the I soon- just based on long term historical information.

The advice of "set it and forget it" in the L2040 isn't that bad of advice, either. I know that I work my tail off (at age 47, and pretty risk tolerant) to be able to beat the L2040. I have been doing it, but it's taken a LOT of work to do it. And in market downturns, especially, the L's holding a little G and F have greatly helped it's return compared to a pure stock play.

Anyway, that's my 2 cents.

Learn all you can.

Absorb information. Become a sponge. Watch others. And develop your own ideas of where you want to be.

 

[Rod]

Hello, and welcome to The Machine.

God Bless

 

[EW_ret]

Welcome to our forums. You can join our Automated Tracker once you have 10 posts. Read the Automated Tracker Rules in my signature. Its been recording our members' IFTs and returns since August 31st. Click Members Ranking to see the current return rankings of our members.

 

[lochaven]

Well, by the time you know it, retirement is right around the corner. Just keep the investing up, and it will pay off. Take it from me.

And Welcome, I've every new here as well.