I have just recently been hired so I have 30 or so years to go before retirement. I sined up for the L2040 since it was supposed to manage your funds for you based upon your approximate retirement date. I started in Sept. and shortly there after, the market began to crash. I increased my contributions significantly. I know that lower stock price means more shares for the money, but aren't some businesses going out? Since I am in the very early stages of my career and investing, I can stomach volitility, but did I do the right thing?
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The Forum works well on MOBILE devices without an app: Just go to: https://forum.tsptalk.com ...
Or you can now use TapaTalk again!L2040 time to buy?
- Thread starter oncken
- Start date
Gumby
Active member
oncken,
Welcome to TSP talk. You will find most people on this board avoid the L funds, but these funds can diversify your holding automatically for you. These funds were designed to buy and hold. All I can say is to read, read, and read some more. Tom has excellent commentary each day and numerous posters have great ideas on investing in the individual funds.
Good luck
CountryBoy
Well-known member
Welcome oncken,
You did fine.
If I were in your shoes, I would've done the same thing, until I learned more about how TSP works and you educate yourself about managing your funds yourself, at which time you may decide to alter the distribution of your funds differently or not. But until then the L2040 is just fine for your timelime. This is a great place to learn all of this, because these guys and gals know their stuff and will be happy to assist. It's just Christmas time and a lot of folks are away.
Merry Christmas,
CBLast edited:Since the market is down and I have a long term retirement horizion, should I look into putting a percentage of my contribution allocation into something like the C fund? From the very little I know about the market, it seems like a good time to pick up lots of C and I shares for the price.
Globalpack
Member
You are doing the right thing. As a long term investor this is THE best time to invest. The short-term problems will barely be a blip on the chart when taking a 20-30 year horizon. As long termers (myself included) it's best to continue dollar-cost averaging the same way as in a good economy.
So keep accumulating those shares because the elevator ride back up will be incredible!Unless you thing the entire market will colape, then this is the time to get in. They are invested in a broad group of companies, some wont be good, but most non financials/ non insurnace stocks are undervalued based on their P/E ratio and their balance sheet vs market cap. Unless you think the S&P could possible drop another 25%, now is the time to get in. It may not go up for another 6 months, but where else to park your money. The G fund isnt paying anything now. The S fund I think has the best prospects of increasing double digits this year.Similar threads
