Paycheck Contribution Question

[shak23]

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Greetings All.

Question- My current paycheck contributions are divided 40%C, 40%S, and 20% I. (Allocations are the same too- just starting out as a Buy & Holder for now). Anyway, today is payday... so is my paycheck contribution buying in atTODAY's prices of C,S, & I or the fund price when I first when to 40%/40%/20%.

Thanks for the info.:^

 

[Dogdaddy]

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Your paycheck contributions buy shares at COB price the day the contribution is credited to your TSP Account..If the contribution goes in today, you get the shares at COB 4/22 share prices.

 

[Rod]

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A suggestion: have your payday go 100 G Fund. Then you can allocate out from there with the market fluctuations.

This way you will not allocate into equitieson a bad day and lose what you were just paid.

God Bless:^

 

[RonSturgill]

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I use the same strategy as well. Now that we can make changes on a day by day basis you don't want to take a chance at a high cost purchase. I use my G fund as a money market account.

 

[pyriel]

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Rod wrote:

This way you will not allocate into equitieson a bad day and lose what you were just paid.

God Bless:^

Rod, Did you mean to say "you will not allocate into equities on a good day and lose them on a bad day." The reason for this is when you buy in a good day, you buy less shares? Buying on a bad day, will allow you to buy more shares and a possibility of an uptrend later?

Pyriel

 

[Rod]

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pyriel wrote:

Rod wrote:

This way you will not allocate into equitieson a bad day and lose what you were just paid.

God Bless:^

Rod, Did you mean to say "you will not allocate into equities on a good day and lose them on a bad day." The reason for this is when you buy in a good day, you buy less shares? Buying on a bad day, will allow you to buy more shares and a possibility of an uptrend later?

Pyriel

What I meant was don't take the chance of allowing your payday$$$ going into equities the same day the market is down.

If I have my payday going 100S and S is down 1.00% that same day, I'm going to lose a big chuck of my contribution.

Whereas if I went 100G with my payday, I could possiblyallocate out and buy-in low the day after the S was down 1.00%.

 

[pyriel]

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Rod,

Thanks for the clarification. Did you say that you are deploying? I thought you just came back from Japan?

Pyriel

 

[Rod]

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pyriel wrote:

Rod,

Thanks for the clarification. Did you say that you are deploying? I thought you just came back from Japan?

Pyriel

Yeah... My Wife & I returned in Jan from the UK.