MT USN Account Talk

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MT_USN

New member
Hello,
I'm new to the site and hoping some of you might be able to give me some tips/guidance. I'm prior military (12 yrs) and transferred my TSP to federal government where I'm at now. I have a total of 17 years military/federal gov and still have 13 years to hit 30 for fed retirment and have 25 plus years to be able to retire. I have everything sunk into the S fund and wanted to know if thats the right place to have all my ducks right now? Would there be a better way or place I should be contributing to my TSP?

On a separate note, I'm about to be a 1st time daddy and wanted to look at taking a TSP loan out to fix up the house and take care of a couple bills before the little one arrives...I'm having my doubts since the markets have been strong but also I have a lot of time to make up the difference. Guess I need someone to be the voice of reason.

Any insight you can offer would be greatly appreciated
 
MT_USN said:
Hello,
I'm new to the site and hoping some of you might be able to give me some tips/guidance. I'm prior military (12 yrs) and transferred my TSP to federal government where I'm at now. I have a total of 17 years military/federal gov and still have 13 years to hit 30 for fed retirment and have 25 plus years to be able to retire. I have everything sunk into the S fund and wanted to know if thats the right place to have all my ducks right now? Would there be a better way or place I should be contributing to my TSP?

On a separate note, I'm about to be a 1st time daddy and wanted to look at taking a TSP loan out to fix up the house and take care of a couple bills before the little one arrives...I'm having my doubts since the markets have been strong but also I have a lot of time to make up the difference. Guess I need someone to be the voice of reason.

Any insight you can offer would be greatly appreciated
Click to expand...

MT USN, You may have noticed I changed the Thread name. You can ask all kinds of questions here and a lot of folks will help. First of all great question and congratulations on your military service and becoming a Federal employee.

Being in the S fund is not a bad place to be and it is doing pretty good so far. But no one here will tell you what to do with your money. We may offer ideas or give some reasoning why this fund is doing better than others but the bottom line is the final decision is yours and yours alone. We have all made mistakes and most of us have learned from them. Right now the best thing to do is read some of the other threads and look at some of the members account talk posts and see some of the charts and their approach and ideas. There are some very smart people here making some very good money. Then there are some of us that think we are smart and not making a lot of money. :rolleyes: Read, ask lots of questions and take the time to educate yourself on how this whole thing works.

As far as the TSP loan have you looked into a "home improvement" loan from your credit union of bank instead of taking money out of your TSP account. I know their are members that have taken out TSP loans and they would be able to give you the good and bad points of doing so.

Good luck and currently I am 100% in the S fund.
 
Do you plan to try and market time, or for the most part buy and hold (2 three trades a year)?

If market time, disregard.

Based on the data below from TSP. S Fund is the best fund over the last 1 year, 3 years, and 10 years; however, F Fund out performed over last 5 years. Therefore, I would sit in the S Fund as much as possible. If I could get a loan outside of TSP for less then the S Fund return (7%) I would recommend not taking a TSP loan. With all that said monthly seasonalty states "sell in May and go away", and come back in October.

I'm a market timer and you can read more of my thoughts on that in my thread.
[TABLE="class: tspStandard"]
[TR]
[TD="class: subHeading bold, colspan: 11"]Average Annual Returns (As of December 2012)[/TD]
[/TR]
[TR]
[TH="class: leadingCell"] [/TH]
[TH="class: packed"]L Income[/TH]
[TH="class: packed"]L 2020[/TH]
[TH="class: packed"]L 2030[/TH]
[TH="class: packed"]L 2040[/TH]
[TH="class: packed"]L 2050[/TH]
[TH="class: packed"]G Fund[/TH]
[TH="class: packed"]F Fund[/TH]
[TH="class: packed"]C Fund[/TH]
[TH="class: packed"]S Fund[/TH]
[TH="class: packed"]I Fund[/TH]
[/TR]
[TR]
[TD="class: leadingCell"]1-Year[/TD]
[TD="class: packed, width: 9%"]4.77%[/TD]
[TD="class: packed, width: 9%"]10.42%[/TD]
[TD="class: packed, width: 9%"]12.61%[/TD]
[TD="class: packed, width: 9%"]14.27%[/TD]
[TD="class: packed, width: 9%"]15.85%[/TD]
[TD="class: packed, width: 9%"]1.47%[/TD]
[TD="class: packed, width: 9%"]4.29%[/TD]
[TD="class: packed, width: 9%"]16.07%[/TD]
[TD="class: packed, width: 9%"]18.57%[/TD]
[TD="class: packed, width: 9%"]18.62%[/TD]
[/TR]
[TR]
[TD="class: leadingCell"]3-Year[/TD]
[TD="class: packed, width: 9%"]4.24%[/TD]
[TD="class: packed, width: 9%"]7.03%[/TD]
[TD="class: packed, width: 9%"]8.09%[/TD]
[TD="class: packed, width: 9%"]8.83%[/TD]
[TD="class: packed, width: 9%"]-[/TD]
[TD="class: packed, width: 9%"]2.24%[/TD]
[TD="class: packed, width: 9%"]6.29%[/TD]
[TD="class: packed, width: 9%"]10.90%[/TD]
[TD="class: packed, width: 9%"]13.92%[/TD]
[TD="class: packed, width: 9%"]4.13%[/TD]
[/TR]
[TR]
[TD="class: leadingCell"]5-Year[/TD]
[TD="class: packed, width: 9%"]3.14%[/TD]
[TD="class: packed, width: 9%"]2.44%[/TD]
[TD="class: packed, width: 9%"]2.32%[/TD]
[TD="class: packed, width: 9%"]2.01%[/TD]
[TD="class: packed, width: 9%"]-[/TD]
[TD="class: packed, width: 9%"]2.69%[/TD]
[TD="class: packed, width: 9%"]6.06%[/TD]
[TD="class: packed, width: 9%"]1.71%[/TD]
[TD="class: packed, width: 9%"]4.22%[/TD]
[TD="class: packed, width: 9%"](3.30%)[/TD]
[/TR]
[TR]
[TD="class: leadingCell"]10-Year[/TD]
[TD="class: packed, width: 9%"]-[/TD]
[TD="class: packed, width: 9%"]-[/TD]
[TD="class: packed, width: 9%"]-[/TD]
[TD="class: packed, width: 9%"]-[/TD]
[TD="class: packed, width: 9%"]-[/TD]
[TD="class: packed, width: 9%"]3.61%[/TD]
[TD="class: packed, width: 9%"]5.25%[/TD]
[TD="class: packed, width: 9%"]7.12%[/TD]
[TD="class: packed, width: 9%"]10.79%[/TD]
[TD="class: packed, width: 9%"]8.39%[/TD]
[/TR]
[TR]
[TD="class: leadingCell"]Since Inception [/TD]
[TD="class: packed, width: 9%"]4.17%[/TD]
[TD="class: packed, width: 9%"]4.82%[/TD]
[TD="class: packed, width: 9%"]4.95%[/TD]
[TD="class: packed, width: 9%"]5.00%[/TD]
[TD="class: packed, width: 9%"]5.81%[/TD]
[TD="class: packed, width: 9%"]5.69%[/TD]
[TD="class: packed, width: 9%"]7.01%[/TD]
[TD="class: packed, width: 9%"]9.50%[/TD]
[TD="class: packed, width: 9%"]7.12%[/TD]
[TD="class: packed, width: 9%"]4.06%[/TD]
[/TR]
[TR]
[TD="class: leadingCell"]Inception Date [/TD]
[TD="class: alignRight packed"]08/01/05[/TD]
[TD="class: alignRight packed"]08/01/05[/TD]
[TD="class: alignRight packed"]08/01/05[/TD]
[TD="class: alignRight packed"]08/01/05[/TD]
[TD="class: alignRight packed"]01/31/11[/TD]
[TD="class: alignRight packed"]04/01/87[/TD]
[TD="class: alignRight packed"]01/29/88[/TD]
[TD="class: alignRight packed"]01/29/88[/TD]
[TD="class: alignRight packed"]05/01/01[/TD]
[TD="class: alignRight packed"]05/01/01[/TD]
[/TR]
[TR]
[TD="class: subHeading bold, colspan: 11"]Calendar Year Returns[/TD]
[/TR]
[TR]
[TH="class: leadingCell"] [/TH]
[TH="class: packed"]L Income[/TH]
[TH="class: packed"]L 2020[/TH]
[TH="class: packed"]L 2030[/TH]
[TH="class: packed"]L 2040[/TH]
[TH="class: packed"]L 2050[/TH]
[TH="class: packed"]G Fund[/TH]
[TH="class: packed"]F Fund[/TH]
[TH="class: packed"]C Fund[/TH]
[TH="class: packed"]S Fund[/TH]
[TH="class: packed"]I Fund[/TH]
[/TR]
[TR]
[TD="class: leadingCell"]2008[/TD]
[TD="class: packed, width: 9%"](5.09%)[/TD]
[TD="class: packed, width: 9%"](22.77%)[/TD]
[TD="class: packed, width: 9%"](27.50%)[/TD]
[TD="class: packed, width: 9%"](31.53%)[/TD]
[TD="class: packed, width: 9%"]-[/TD]
[TD="class: packed, width: 9%"]3.75%[/TD]
[TD="class: packed, width: 9%"]5.45%[/TD]
[TD="class: packed, width: 9%"](36.99%)[/TD]
[TD="class: packed, width: 9%"](38.32%)[/TD]
[TD="class: packed, width: 9%"](42.43%)[/TD]
[/TR]
[TR]
[TD="class: leadingCell"]2009[/TD]
[TD="class: packed, width: 9%"]8.57%[/TD]
[TD="class: packed, width: 9%"]19.14%[/TD]
[TD="class: packed, width: 9%"]22.48%[/TD]
[TD="class: packed, width: 9%"]25.19%[/TD]
[TD="class: packed, width: 9%"]-[/TD]
[TD="class: packed, width: 9%"]2.97%[/TD]
[TD="class: packed, width: 9%"]5.99%[/TD]
[TD="class: packed, width: 9%"]26.68%[/TD]
[TD="class: packed, width: 9%"]34.85%[/TD]
[TD="class: packed, width: 9%"]30.04%[/TD]
[/TR]
[TR]
[TD="class: leadingCell"]2010[/TD]
[TD="class: packed, width: 9%"]5.74%[/TD]
[TD="class: packed, width: 9%"]10.59%[/TD]
[TD="class: packed, width: 9%"]12.48%[/TD]
[TD="class: packed, width: 9%"]13.89%[/TD]
[TD="class: packed, width: 9%"]-[/TD]
[TD="class: packed, width: 9%"]2.81%[/TD]
[TD="class: packed, width: 9%"]6.71%[/TD]
[TD="class: packed, width: 9%"]15.06%[/TD]
[TD="class: packed, width: 9%"]29.06%[/TD]
[TD="class: packed, width: 9%"]7.94%[/TD]
[/TR]
[TR]
[TD="class: leadingCell"]2011[/TD]
[TD="class: packed, width: 9%"]2.23%[/TD]
[TD="class: packed, width: 9%"]0.41%[/TD]
[TD="class: packed, width: 9%"](0.31%)[/TD]
[TD="class: packed, width: 9%"](0.96%)[/TD]
[TD="class: packed, width: 9%"]-[/TD]
[TD="class: packed, width: 9%"]2.45%[/TD]
[TD="class: packed, width: 9%"]7.89%[/TD]
[TD="class: packed, width: 9%"]2.11%[/TD]
[TD="class: packed, width: 9%"](3.38%)[/TD]
[TD="class: packed, width: 9%"](11.81%)[/TD]
[/TR]
[TR]
[TD="class: leadingCell"]2012[/TD]
[TD="class: packed, width: 9%"]4.77%[/TD]
[TD="class: packed, width: 9%"]10.42%[/TD]
[TD="class: packed, width: 9%"]12.61%[/TD]
[TD="class: packed, width: 9%"]14.27%[/TD]
[TD="class: packed, width: 9%"]15.85%[/TD]
[TD="class: packed, width: 9%"]1.47%[/TD]
[TD="class: packed, width: 9%"]4.29%[/TD]
[TD="class: packed, width: 9%"]16.07%[/TD]
[TD="class: packed, width: 9%"]18.57%[/TD]
[TD="class: packed, width: 9%"]18.62%[/TD]
[/TR]
[TR]
[TD="class: subHeading bold"]YTD[/TD]
[TD="class: packed, width: 9%"]2.11%[/TD]
[TD="class: packed, width: 9%"]5.00%[/TD]
[TD="class: packed, width: 9%"]6.28%[/TD]
[TD="class: packed, width: 9%"]7.23%[/TD]
[TD="class: packed, width: 9%"]8.07%[/TD]
[TD="class: packed, width: 9%"]0.38%[/TD]
[TD="class: packed, width: 9%"]0.01%[/TD]
[TD="class: packed, width: 9%"]10.61%[/TD]
[TD="class: packed, width: 9%"]13.09%[/TD]
[TD="class: packed, width: 9%"]4.34%[/TD]
[/TR]
[/TABLE]

https://www.tsp.gov/investmentfunds/returns/returnSummary.shtml
 
Sitting in theS fund seems to be the consensus. Much appreciated on the advice with the TSPloan, unfortunately the loan that I plan on taking care of with the TSP loan is well above the 7%return rate of the S fund, however, I'm still not set on pulling a TSP loan just yet. Thanks again!!!
 
NASA1974, thank you for the insight, its much appreciated. Not sure the route I'll take yet, but I'm learning a lot from looking through the site...
 
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