Investing Your TSP Account Contributions

[catak]

I know if you don't make any changes in your account, TSP will invest all new money into the "G" fund. I recently made a change to 5% 2030, and 19% to G, C, F, S and I. I then made an IFT for 50% G and 50% S.

What would be the best strategy, should I change my contribution to reflect my IFT? Or should I keep it as is? Or should I change my Contribution to everything in the G fund and only make changes through an IFT. Would my chances of making more money that or continue to change my contribution changes? What's your strategies?

See attached.

 

[Birchtree]

It's difficult to accumulate shares being diversified so thinly - put all dollars on the C fund and use dollar cost averaging to your advantage. Get concentrated for quicker gains in share accumulation - it's the number of shares that is important not trading. Once you got 40,000 shares let it rip.

 

[Frixxxx]

Birch touches on the subject a little (never play Texas Hold'em with him, he's an all in guy!)

Good question, if you are going to stay diversified and not move money often enough, then having your contribution match your allocation makes sense. However, if you use your distribution to position yourself in the direction of the market, then you will have to change your ditribution accordingly. Thinking you are going to distro to G and then move it means you might be giving up your IFTs just to move small amounts of money into the market.

Bottom Line will be how aggressively you want to participate and when.

Me personally, I Distribute as I Allocate. Use my IFTs for mass movement!

 

[catak]

Birch,

I'm pretty young, so your advising to contribute everything into the C fund and then make choices using IFT's? Correct? Also, how do i figure how man shares I have now?

 

[catak]

I do want to become actively involved in my account and utilize the two IFT's per month. It's just so damn difficult to find any resources to make those life changing moves.

 

[Birchtree]

Birch,

I'm pretty young, so your advising to contribute everything into the C fund and then make choices using IFT's? Correct? Also, how do i figure how man shares I have now?

Yes - that way it stays simple and you might get better pricing over time. The number of shares will be listed in your account.

 

[userque]

...What's your strategies?

catak,

When do you expect to retire? I suggest that you strongly consider dumping 100% of your 'allocations' into one of the L funds and do no IFT's. Which of those L funds?...depends upon when you expect to retire.

After you "set it, and forget it;" consider reading some established retirement investment books. They may be more helpful for you with regard to learning how to invest for retirement.

Good luck!

 

[userque]

...(never play Texas Hold'em with him, he's an all in guy!)...

really...would love to see him at the tables

 

[Frixxxx]

really...would love to see him at the tables

Not the one you're playing at!

 

[catak]

I'm 35 now, but plan on retirering at 55. L2030...

Curretnly have about 9k shares.

 

[remark]

catak,

I probably shouldn't interject but I have several co-workers who are similar to your age who have come to me for advice a while ago. I am close to becoming an old timer with TSP but I'm a 2-year old newbie to this site. I have researched all available data the TSP site has to offer and have read and read and read the threads, blogs etc on this site - die hardedly for the past two years. It is incredible what you can learn. My younger co-workers all expressed that they did not want to keep a vigilent eye on their TSP accounts and did not want to constantly make IFT's therefore, what would be best for essentially a buy and hold effort other than the G Fund. I made every effort in providing info and guidance, while not telling them exactly what to do. All of them have 20+ years to retire so they can take on more risk. End result was 2 of them have divided their money as equally as possible between the C-S-I funds while another 2 have invested entirely into the 2050. They all appear to be content with their current strategy. Just an effort to relay to you what a couple of others, around your age, are doing.


Best of Luck!

 

[catak]

Remark,
I appreciate the sound advice and like you have been going through the forum and can contest that someone of my age should take more of a risk considering my time line. I’ve decided to change my contribution to 100% C fund and then attempt to make sound choices with my two IFT’s to gain more shares. I also think since I can have unlimited contribution changes that I’ll contribute entirely with the C fund for a one quarter of the year and then divided equally the next quarter. Do you have an auto tracker setup? Feel free to analyze mine from time to time. Again-thanks for the wisdom and please stay in touch.

v/r

 

[Frixxxx]

I'm 35 now, but plan on retirering at 55. L2030...

Curretnly have about 9k shares.

Remember you have to meet the MRA (Minimum Age Requirement) or you will have to take a deferred retirement. Are you LEO?