l2040 fund a winner??

[dox1842]

Hey guys ive only been in the navy reserve for 2 years and plan on going active duty after an upcoming deployment and finishing school. So far I have put everything in the 2040 fund but I notice its stock price has plummeted over the past few days. I wonder if the market will go up from here? I know its hard to look into the future 30+ years from now but I hope im on the right track. I plan on retiring from the .mil and also putting all my special pay and bonuses (I already put my whole sign on bonus in) into it. I hope im not making a mistake?? :worried:

 

[nnuut]

Re: l2040 fun a winner??

The Stock Market goes up and it goes down. Right now it is on the way down and has been sense last October. The "G" fund is safe and the "F" usually wins when stocks are going down. You can always reinvest (twice a month) By Interfund Transfer when the Bear Market is through with us! Where the bottom is nobody knows.

 

[tsptalk]

Re: l2040 fun a winner??

Hey guys ive only been in the navy reserve for 2 years and plan on going active duty after an upcoming deployment and finishing school. So far I have put everything in the 2040 fund but I notice its stock price has plummeted over the past few days. I wonder if the market will go up from here? I know its hard to look into the future 30+ years from now but I hope im on the right track. I plan on retiring from the .mil and also putting all my special pay and bonuses (I already put my whole sign on bonus in) into it. I hope im not making a mistake?? :worried:

Welcome dox! We don't use the L funds too much around here, but for someone with 30+ years to go, 2040 would be the L-fund for you. Consider getting even more aggressive using C, S and I almost exclusively for a buy and hold account, maybe some F.

 

[Frixxxx]

Re: l2040 fun a winner??

Welcome dox! We don't use the L funds too much around here, but for someone with 30+ years to go, 2040 would be the L-fund for you. Consider getting even more aggressive using C, S and I almost exclusively for a buy and hold account, maybe some F.

Buy and Hold, hmmmm are you masquarading as someone else today? :suspicious:






:laugh:

 

[tsptalk]

Re: l2040 fun a winner??

Buy and Hold, hmmmm are you masquarading as someone else today? :suspicious::laugh:

He's too green to hear what most of us do. Give him a few months and he'll be calculating the VIX free hand and jumping around like the rest of us.

 

[Silverbird]

Re: l2040 fun a winner??

I'm only skating by in comparison to some of the skillful investors here, but my 2 cents is I think buy and hold is a good idea for him for now, too. Pulling out now would bring on a lot of hurt!

 

[dox1842]

Re: l2040 fun a winner??

Yeah im a reservists, I wish I could put more money in right now since the stocks are "on sale". My last period of active duty I had a hefty 30 percent going in. I will be mobilized soon next month hopefully so I think ill continue with the same strategy except i might buy some savings bonds as well(the kind with the 10% interests).

 

[Braveheart]

Re: l2040 fun a winner??

FYI - Do Not Listen to anyone from the FRTIB those L Funds are doing bad very bad for example the L2040 is down 29% so far this year.

That's right 29& so if you had $100,000 in that Fund January 1, 2008 in 9 months you lost $29,000.

The safest Fund is the G Fund because it is safe especially in times like this but if you have the same rules we have look at that C Fund and S Fund that is where the money is going to be made. It's high risk but the L Funds are also high risk with lower rewards.

The FRTIB is pushing those L Funds on new members because most of us who have been here a long time see them as a sham.

Trust me you will get better information from members on TSPTALK.com than anyone at the FRTIB. They are not looking out for you or me.

 

[James48843]

Re: l2040 fun a winner??

Welcome DOX.

If you don't know a whole lot about where to start investing- then the "L funds" are just fine over the long term. Seriously- many of us have been doing TSP investing, and I can tell you that the L funds will do just fine over time. Those of us who monitor our accounts frequently, watch the markets, etc, try to do our best to beat the L funds, and it isn't easy to do, even when you are on top of things.

Welcome to TSPTALK, and, and you'll learn lots over the next few years. In the meantime, enjoy your service, and enjoy the L funds. True, at this exact moment it may not look real good- but over time you will do just fine.

Hang in there. And good luck.

 

[Mike]

Re: l2040 fun a winner??

FYI - Do Not Listen to anyone from the FRTIB those L Funds are doing bad very bad for example the L2040 is down 29% so far this year.

A fund invested mostly in stocks is down in a bear market? Gee, I'm shocked, SHOCKED at this!

That's right 29& so if you had $100,000 in that Fund January 1, 2008 in 9 months you lost $29,000.

Or for context, you could tell him how the fund would have done during the bull market of '03-'07.

The safest Fund is the G Fund because it is safe especially in times like this but if you have the same rules we have look at that C Fund and S Fund that is where the money is going to be made. It's high risk but the L Funds are also high risk with lower rewards.

The L2040 has lower volatility than any of the three stock funds and will have a comparable return over the long haul. That's why the funds exist. It's not some TSP scam. You can buy target date retirement funds outside TSP as well through places like Vanguard. I don't know why you want to endlessly attack these things as if they are devil spawn.

The FRTIB is pushing those L Funds on new members because most of us who have been here a long time see them as a sham.

No, they are pushing the L2040 on new hires because it makes sense to invest in it. You can ask any financial planning expert on this issue and most if not all will say the same thing: a target date retirement fund is a very sensible approach to investing in a 401k.

Trust me you will get better information from members on TSPTALK.com than anyone at the FRTIB. They are not looking out for you or me.

That's up for debate.