I have started my TSP contributions

[edub10304]

I am 34. Was a Temp NTE 1 yr so could not get into TSP, then got Perm and had to wait for the matching. Now I am contributing and being matched. I have a 25 year window where I will have 40 yrs in FERS. Buying back 13 yrs of Army time.

I am not new to investing and know I should be at higher risk having so long to go. I started out with the following allocations.

S fund- 25%
C Fund-50%
I Fund- 25%

I have considered adjusting fire and taking 5% off each and socking it in G to have some to jump in for cost avg. What do you all think?

edub

 

[nnuut]

Welcome to the Message Board edub10304, I think you should start out by seeing what everyone is doing on the message board and checking out the Tracker. Lots of info here, you will have to make up your own mind how to play it. Currently I am 100% "C" fund, but am at the bottom of the Tracker, so there you go.
Good luck
Norman

 

[Frixxxx]

Welcome to the board,

With 25 years, stay aggressive until you can't bear the losses. Stay outta "G" unless protecting profit.

Good Luck and see ya around.

 

[Birchtree]

Lock it and walk it. You will need many years to grow your base. I'd concentrate on a Roth IRA that will allow you to maximize your gains utilizing individual stocks. Use this board to learn before you churn.

 

[tsptalk]

Welcome edub!

 

[edub10304]

It's funny, when times were good, I was playing options and moving in and out of stocks in my own account. Now it is for retirement and it makes me feel like I should be more cautious.

 

[tsptalk]

You are probably right. If you were 23 years old it might be different. At 34, you are still young but you may want to start thinking more about accumulating.

 

[XL-entLady]

Welcome, edub! I'm already retired and I understand what you're saying about trying to decide how much to put at risk. I'm probably too cautious, keeping more in G than I should and thus missing out on some gains while I'm trying to protect my seed corn.

This MB is a great place to learn and compare notes with others. Glad you're here!


Lady

 

[KevinD]

Welcome!

 

[Silverbird]

A good time to start, you missed the roller coaster drop and cliff dive of 2008! Welcome, this is a good time to start. May be bumpy, but not falling like a rock.

 

[Show-me]

Welcome to the party!

 

[edub10304]

Is the water warm? Can I jump right in?

 

[Show-me]

It's warm but look out for the turds and they ain't Baby Ruth's!

 

[edub10304]

It's warm but look out for the turds and they ain't Baby Ruth's!

How can you be sure til you take a bite?

 

[Aviator_Guy]

Can you imagine what type of retirement you would have if you maxed the FERS TSP out every year for 40 years!!! As the Los Angeles valley girls would say, it would be,,, Oh My Gawd… 15K x 40 is 600K and that is without any matching funds, or bumping it up when you reach 50 and not earning any interest!!

If I had to guess, I would say somewhere between 2 to 4 million if you factor in interest and matching funds?? I sure wish I had started saving when I started out as an E-3 in the USN back in good ole 1975. But, back then I think my base pay was only like 300 a month…LOL

 

[edub10304]

Can you imagine what type of retirement you would have if you maxed the FERS TSP out every year for 40 years!!! As the Los Angeles valley girls would say, it would be,,, Oh My Gawd… 15K x 40 is 600K and that is without any matching funds, or bumping it up when you reach 50 and not earning any interest!!

If I had to guess, I would say somewhere between 2 to 4 million if you factor in interest and matching funds?? I sure wish I had started saving when I started out as an E-3 in the USN back in good ole 1975. But, back then I think my base pay was only like 300 a month…LOL

I think I will be ok contributing for 25 years. I am fortunate to be able to max it out starting in year 1 of 25. With promotions and keeping my standard of living under control, I should do well.

Was a E2 in 1994, think base pay was 750.

 

[edub10304]

When you make an interfund transfer before the noon deadline do they buy/sell at the closing price or current price when the IFT was placed?

 

[nnuut]

When you make an interfund transfer before the noon deadline do they buy/sell at the closing price or current price when the IFT was placed?

I wish they bought/sold at the current price when the IFT was submitted, but it's the Price at the end of the day!

 

[Steadygain]

When you make an interfund transfer before the noon deadline do they buy/sell at the closing price or current price when the IFT was placed?

The closing price

That has huge advantages over the long run. You always buy at that price regardless of how many shares you're buying. If you're buying instead of selling usually the day will end at a better price and if you sell on a rally you sell at a better price.

 

[edub10304]

The closing price

That has huge advantages over the long run. You always buy at that price regardless of how many shares you're buying. If you're buying instead of selling usually the day will end at a better price and if you sell on a rally you sell at a better price.

Cool. Now I just have to build a good base in my TSP to be able to make those moves worth it....Although it is all relative, % gain is a % gain no matter the principle.