left funds alone!

[knowlittle]

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I contribute15% to my tsp account and have 50% going to S and 50% going to I. I have left it like that for a while. I have been contributing for 4 yrs. Is it the right move to leave it alone? Some guys I know put it all towards the C fund and have left it like that for many years, which is better for someone who does not know much about the market and has many years of contributing left?

 

[rokid]

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I'd put it in the L 2040 fund and forget it!

 

[Sr]

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rokid wrote:

I'd put it in the L 2040 fund and forget it!

I agree with you if the investor was in need of reduced volatility while he is in accumulate/grow phase for years on out. IOW, the man wants to sleep better than eat better. I know many who wants growth(eat better)but have no interest at all about the mkt and are busy with life in general without missing sleep. The fundamental problem with diversification for the latter types is that itdoes not build wealth as good as concentration-provided you can withstand the volatility. I agree not many can do so and hence diversified portfolio is smart for majority of folks. But even for them why reduce return F and G funds in the mix? A 33 C, 33 S and 34 I will do just fine over 15 years. Viewing a holistic portfolio of pension, social security and personal saving for retirement, all americans are over weighted in fixed income. If you assume pension and social security are annuity income stream froma bond fund over 15-20 years in retirement, the net present value of this income stream in aholisitv portfolio of an average ameriican exceeds one quarter million dollars. How much more fixed income do you want? Learn to earn more and sleep better inspite of volatility of your savings. Any way that is my 2 cents. L2040 is good minus fixed income asset class.

 

[rokid]

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The idea of including bonds is to reduce risk. Historically, stocks have provided higher returns at a higher level of risk. If you can stand the risk, e.g. -20% returns three years running, then by all means go 100% stocks. However, if you can't, and I don't think I could, include some bonds to dampen volatility.

 

[Birchtree]

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Knowlittle,

Sometimes, actually, the less we know the better investors we are - but that doesn't last for long once you start to build an account. Your cycle timing via dollar cost averaging has been straight on allowing you to accumulate some good pricing from the bottom to the top. You can stay just like you are and continue to grow - but you won't grow as fast because you are buying less at higher prices - and both of your funds will continue to grow, so you really can't go wrong. But there is another alternative that will help you grow faster in this bull market. May I suggest you keep your current contribution allocations in the S fund and the I fund. Do an IFT into the C fund with the built up position you have accumulated over the last four years. Going into the C fund at this point in time is another cycle move that is ready - and it is still cheaper than the other two so you can consolidate with more strength. Letting the S fund and I fund run with further contributions is a small sacrifice but it will allow some superficial diversification - most of the gains going forward will be made by the C fund. If there are some corrections you can use your other funds as resources to dollar cost average the C fund. This is just one example of the potential flexibility that your TSP account offers. Have fun.

Dennis-perma bull #2

 

[knowlittle]

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Thanks to all. The more input I get, from different views, the better for me.

 

[knowlittle]

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If anyone has anything that they would like to add regarding my original question, I would appreciate it.

 

[cowboy]

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knowlittle wrote:

I contribute15% to my tsp account and have 50% going to S and 50% going to I. I have left it like that for a while. I have been contributing for 4 yrs. Is it the right move to leave it alone? Some guys I know put it all towards the C fund and have left it like that for many years, which is better for someone who does not know much about the market and has many years of contributing left?

Knowlittle wrote:

If anyone has anything that they would like to add regarding my original question, I would appreciate it.


2+2+2 subtract the value of the dollar + 1. Whoops Sorry I was just adding to the original post!!! LOL!!! From one that knows little to another, if it made you money no problem, if your happy with the allocation no problem, if you look at your account and don't mind the larger fluctuation no problem, if you have many years left before retirment no problem, if you continue to cost average no problem. If you die young and give all your money to Cowboy no problem. It doesn't matter if your dumb or smart money to me, it is all green and I accept it. If your married and ever get divorced watch the market when it is down sign divorce papers at that time! LOL!!!! If you don't like the advice I have given you, just ignore it! By the way Merry Christmas & a Happy New Year!!!!!!!!!!!!!!!!!!!!!!!!! If you get a hitch in your giddy-up just ride it out Cowboy style!! Northern USA in a heat wave, oil is going to go down meaning what? Get off your G, F and get into your CSI till at least next week! Help that fat @#* Santa with the rally!! "Hey Cowboy your gettin a little carried away." "No I ain't Jim Bob! I just want to wish him a Merry Redneck Christmas. By the way do you have those passes to the Federal pen to see Mommain Kansas!" "Yep gottum right here, Cowboy!" "Well, click them slippers and lets go then!" HO!HO!HO!HO!

 

[vicky]

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cowboy wrote:

............

LOL

Merry Christmas, cowboy!