I Fund dying?

[BUZZxKILLINTON]

I'm pretty new to this, so if this sounds like a stupid question, sorry. I started contributing my money to the TSP in 2005. Now I want to start playing with the stock options we get from the TSP. Currently I'm contributing 20%. 50 of it is going to the S and the other 50 is going into the I fund. The reason I decided on those were for the reason that they yielded the most revenue. To this day I just contributed, never thinking about moving them around at all. At one point this year the I fund was at about 20 a share and now it's gone down to about 16. A co worker told me to get out of the I fund because he thinks it's going to crash due to what's happening in Greece. Should I listen to him, or wait it out and get out once it hits 20 a share. Once again, I'm new to this whole thing and would really like some input.

 

[Birchtree]

Think about how hard your dollars are working and how many shares you can buy at the current prices - accumulation for the long term is an objective.

 

[silversurfer]

Yes BUZZ, i asked yesterday about the volitility of the I fund and would be interested to hear some input from others well versed. It seems that the problems in greece need to be over before gains are realized on that fund. I get the dollar cost averaging, but also i look at it this way....isn't it better to wait a few weeks until the situation resolves itself overseas before jumping aboard? I am new to this also, but i feel that putting $$ in that fund now is like jumping aboard a ship going down. I guess i sleep better at night knowing that i dont have anything in there now. When the market is good, i feel better about the I fund..but i guess that goes for the whole market. Good luck to us both.

 

[nnuut]

Welcome to the Message Board BUZZxKILLINTON. That is the BIG Question, which way is the market going if I could answer that one I would be rolling in Bucks. The market is very volatile now and jumps up and down on any whisper of changes in the condition of the World Market, trying to out guess that and call a bottom is very risky. The action in the last 3 days has been encouraging but could turn around in a minute, when it does decide which way to go it will be drastic if to the upside or the downside, and the "I" Fund is the worst. I'm in the same boat and being very careful.
Best of luck
Norman

 

[nasa1974]

I can remember just a few years ago when the I fund was the place to be. Investing is for the long haul and you have just started. You have time to wait for the fund to get back to your purchase price, if you want. It comes down to risk. Are you comfortable with the position you are at now? Are you will ing to take a little more risk? Unless you cash out, you haven't lost any money. Your account just has less value. Over time the value of your account will increase. Good Luck.

 

[James48843]

Greece is only a tiny, tiny portion of the I funds holdings. The single biggest country in the I fund is Japan.

The value of I fund varies- sometimes is grows faster, sometimes slower, sometimes it takes a big hit. I fund is just one part of an overall portfolio. Learn more about it, and about the other funds, and you'll have to make your own decisions on where to put your money. It's all up to you.

 

[tsptalk]

Hi Buzz! One major factor for the I-fund is the strength of the dollar. The I fund has tanked lately because the Euro has become so weak because of the European debt issues, and that has strengthened the U.S. dollar.

When the dollar goes up, it takes fewer dollar to buy something that remained fixed in value. Thus a rising dollar will make the I-fund (and other funds, but more so the I-fund) worth fewer dollars.

 

[BUZZxKILLINTON]

Wow, a lot of great information, the main reason I decided to join. Thanks for the info, I guess im sticking in there for awhile.

 

[ILoveTDs]

The buy and hold stratagy is one way to look at the market, and it might be the right stratagy for you. The theory being that you will be in the market during the ups and during the downs, but overall the market will steadily incease. However, that theory has not been the case over the last 12 years. Their were a few articles publish in 2010 were market stratagist coined the phase "the lost decade" in relation to the market having zero growth from 2000 to 2010. It has been referenced again lately to the effect that the losses of this year have wiped out last years gains. If you want to know more google "Stock market the lost decade".

My personnal analogy about the buy and hold stratagy is more like continuing to play Black Jack while you are lossing, and justifying it becuase eventually you have to win a hand. I perfer to leave a table I'm lossing at and try to find a hotter table, it might be the right move it might be the wrong move, but that's the move I make.

I pulled my money out of the I fund and put it in the F fund

 

[Boghie]

Buzz,

You are in the two most aggressive funds of our five choices. If you want some stability put some of your assets in the F and C funds. The C fund is still equities, but it bounces around less.

Always contribute into C/S/I - or even S/I. Gives you a chance to invest when the prices are low.

 

[ILoveTDs]

Doesn't look dead this week

 

[WorkFE]

The I fund, compared to the C & S, is like an undervalued stock. If you believe the rest of the world will recover and time is on your side it's not a bad play.

 

[Sensei]

You guys swimming in the I-pool sure look like you're having a lot of fun lately! I'd jump in too, but by the time my IFT processes, it'll probably just be lukewarm with a thick film of Birchtree's sunscreen floating on the surface.

 

[crommie]

Hi Buzz! One major factor for the I-fund is the strength of the dollar. The I fund has tanked lately because the Euro has become so weak because of the European debt issues, and that has strengthened the U.S. dollar.

When the dollar goes up, it takes fewer dollar to buy something that remained fixed in value. Thus a rising dollar will make the I-fund (and other funds, but more so the I-fund) worth fewer dollars.

Can someone explain what happened to the I Fund today? I assume the answer is FV, but even after reading all of these I Fund Threads I still don't get it. Today the EU Markets were all down around 1%, but the EFA bounced around the neutral line all day and finally closed up 0.17%. Also the Euro gained 0.85% on the USD. So, I figured that the I Fund would end up around 0.17 + 0.85 = 1.02% up. But instead it came in at -0.67% down. :blink: Is this because 0.17 - 0.85 = -0.68%? This is the opposite of what Tom stated in this quote. A week USD should make for a higher I Fund price, not lower...I think... Thanks in advance for straightening my head out on this.

 

[tsptalk]

Take a look at the daily EAFE return for Friday...

http://www.msci.com/products/indices/size/standard/performance.html?undefined

(You may have click "I agree" at the bottom of the first page.)

 

[ILoveTDs]

Loving me some I Fund right now.

 

[ILoveTDs]

Respro here. 50% S 50% I since early 2008. I lost a good chunk of change but didn't panic. I made all I lost back plus a nice return over the last few years. Question is, will the mess in europe kill the I fund long term? Should I get out of the I now before Greece defaults? Anyway, glad to meet you folks! OH, Thanks for the info.

Respro

The answer to your question might be answered by reading this thread.