Peterson82's Account Talk

[peterson82]

For my first 'Peterson82's Account Talk' post I would like to ask the TSP community for some advice.
I just started working for Federal Government about three months ago, and this is my first salary job. My expenses are the usual, car insurance, rent, cell phone, and college loans, etc. I am currently in the L2040 fund, and contribute 5% of my salary every pay period. Give the market low, should I "bite the bullet" and increase my contribution even though it might make things tight.
Theory behind this is buy up as many shares right now, and reap the rewards when it finally goes up. I am worried that I don't have enough cash available to take advantage of the market!

Thanks!

 

[Minnow]

If you're single... sure!!! Build yourself a base ... a large base while you can. Being in DC, your cost of living is gonna be higher so -- it is what it is and deal with it.

You're probably not that far from living like a college student so, if it makes things tight to contribute more to your retirement, you are more used to it. You probably aren't so far removed from eating pb&j's three or four nights a week anyway.

When the family comes along, you'll have a bigger base and can therefore budget accordingly.

Paying attention to this stuff early on makes it less worrisome in the future.

This is all just my opinion... you will have to make that call yourself.

Best of luck... and I have enjoyed your viewpoints in other threads.

 

[BamaAF]

For my first 'Peterson82's Account Talk' post I would like to ask the TSP community for some advice.
I just started working for Federal Government about three months ago, and this is my first salary job. My expenses are the usual, car insurance, rent, cell phone, and college loans, etc. I am currently in the L2040 fund, and contribute 5% of my salary every pay period. Give the market low, should I "bite the bullet" and increase my contribution even though it might make things tight.
Theory behind this is buy up as many shares right now, and reap the rewards when it finally goes up. I am worried that I don't have enough cash available to take advantage of the market!

Thanks!

IMO Absolutely -- take advantage of the pre-tax witholding plus take advantage of great time to buy into the market low now. I've always maxed my contribution, and you really don't miss it because you never had it, especially if you do it now.

 

[JTH]

Ditto, the sacrifices you make now will reap huge rewards later on. If you can afford too, contribute the maximum allowed.

Best of luck

 

[nnuut]

Welcome to the MB Peterson82.
Best of luck!
Norman

 

[Scout333]

should I "bite the bullet" and increase my contribution even though it might make things tight.

Absolutely, Same advice I just gave my son who just started his first real job. Not because of the current market but because of the long time span your money will earn. Money you put in now will have a very beneficial effect on your financial future! Wish I had been smarter at your age!

 

[justbizness45]

For my first 'Peterson82's Account Talk' post I would like to ask the TSP community for some advice.
I just started working for Federal Government about three months ago, and this is my first salary job. My expenses are the usual, car insurance, rent, cell phone, and college loans, etc. I am currently in the L2040 fund, and contribute 5% of my salary every pay period. Give the market low, should I "bite the bullet" and increase my contribution even though it might make things tight.
Theory behind this is buy up as many shares right now, and reap the rewards when it finally goes up. I am worried that I don't have enough cash available to take advantage of the market!

Thanks!

P82, my daughter just completed her first year of summer internship in federal service. I had her doing the max she can afford and go back to school and she's not even a full time employee yet. I have 26 years of government service and never saved a dime until 6 years ago and I am regretting it with a capital R. Don't make my mistake, invest as much as you can afford. Under FERS, TSP is your nest egg. The stipend and SS (if you ever see it) won't cut it. This of course is JMHO. Welcome to the MB!!

 

[peterson82]

If you're single... sure!!! Build yourself a base ... a large base while you can. Being in DC, your cost of living is gonna be higher so -- it is what it is and deal with it.

You're probably not that far from living like a college student so, if it makes things tight to contribute more to your retirement, you are more used to it. You probably aren't so far removed from eating pb&j's three or four nights a week anyway.

When the family comes along, you'll have a bigger base and can therefore budget accordingly.

Paying attention to this stuff early on makes it less worrisome in the future.

This is all just my opinion... you will have to make that call yourself.

Best of luck... and I have enjoyed your viewpoints in other threads.

Thanks Minnow. I do keep it simple while I can! I will definitlely increase my contribution. By how much? I'll crunch some numbers today.

IMO Absolutely -- take advantage of the pre-tax witholding plus take advantage of great time to buy into the market low now. I've always maxed my contribution, and you really don't miss it because you never had it, especially if you do it now.

Yeah, contributing the money right off the bat is a good idea just so I don't get used to it! Hopefully, I haven't already.
Yeah, I really think I have a golden opportunity to buy low here, and I don't want to miss the train to el dorado.

Ditto, the sacrifices you make now will reap huge rewards later on. If you can afford too, contribute the maximum allowed.

Best of luck

Thanks! So much support for putting in more early... I must have been crazy putting only 5% in.

Welcome to the MB Peterson82.
Best of luck!
Norman

Thanks nnut. I really like the oil message board!

Absolutely, Same advice I just gave my son who just started his first real job. Not because of the current market but because of the long time span your money will earn. Money you put in now will have a very beneficial effect on your financial future! Wish I had been smarter at your age!

One thing I do not do is brush away good advice. Hopefully, I know it when I hear it, but if someone gives me advice (and I know they have experience) I will try my best to remember and follow. It's funny, I wouldn't have put any thought into increasing my account if it wasn't for the rock-in-water trend the market has taken. As I see now, I should look at every dollar I put in to the account now as more like 5-10 dollars.

P82, my daughter just completed her first year of summer internship in federal service. I had her doing the max she can afford and go back to school and she's not even a full time employee yet. I have 26 years of government service and never saved a dime until 6 years ago and I am regretting it with a capital R. Don't make my mistake, invest as much as you can afford. Under FERS, TSP is your nest egg. The stipend and SS (if you ever see it) won't cut it. This of course is JMHO. Welcome to the MB!!

Good advice, I hope your daughter keeps it up! Thanks for the input, and the welcome!

I have a busy day today with the new fiscal year and all. I'll probably be back on the boards tomorrow or this Tuesday.

Thanks all!

 

[peterson82]

Alright, I have made a recent change in my tsp funds. I have decided to keep ~50% in L2040 at all times while I play with the other part. This will enable me to learn mistakes with my 2 IFT trades, and get better, while still diversifying.

Right now, I am at my limit of IFTs. So this is what it looks like for the rest of the month:
35% G | 15% F | 50% L2040.

Conservative approach, as I don't think we will have any major inclines, while there is still threat of a decline.

 

[EW_ret]

Its good to put as much as you can afford into TSP. Its easiest to incease your percentage conributions when you get a raise. By increasing your contributions by 1% or 2% with each raise, its less noticable. The contributions to your TSP account should go into the L2040 fund. Its best to dollar cost average into the most volatile fund since this will get you a better average price in a sideways or down trending market. You should also build an emergency fund to pay for unforeseen expenses that crop up.

Good investing?

 

[peterson82]

The good times keep rolling!

Wachovia Loses $23.9 Billion on Real-Estate Charges

 

[peterson82]

Wachovia Loses $23.9 Billion on Real-Estate Charges (Update2)

 

[peterson82]

Here is some information about the elimination of Time-in-grade requirements.

http://edocket.access.gpo.gov/2008/E8-26559.htm

SUMMARY: The Office of Personnel Management (OPM) is eliminating the
time-in-grade restriction on advancement to competitive service
positions in the General Schedule. The rule eliminates the 52-week
time-in-grade requirement for promotions. Employees must continue to
meet occupational qualification standard requirements and any
additional job-related qualification requirements established for the
position.

DATES: The rule is effective March 9, 2009.

 

[peterson82]

I need to read up on what they will do with laddered positions... this could be potential huge for me.
:laugh:

 

[peterson82]

So, I started work in July, and it will take a whole YEAR before I get my matching "free" money! I guess to protect them from paying a bad employee? Why not just take the money back if an employee leaves before three years TIS?

 

[Silverbird]

Well, then, you have lots of planning time. I'm not sure whether you have to put in anything into TSP except time to get the matching - does anyone else know?

 

[peterson82]

First IFT of the year and month: 100% I Fund.

 

[peterson82]

G-Fund for the rest of January.

 

[peterson82]

100% F-Fund for the last trade in January.

I am at the bottom so far this year, but not for long .

 

[Steadygain]

100% F-Fund for the last trade in January.

I am at the bottom so far this year, but not for long .

Looks like you made a good move (fingers crossed and holding breath)

With 81 other accounts you're doing WAY better than the rest of us.

You have a GREAT ATTITUDE ! and that's the important thing. Don't worry about the position on the AT (and honestly it sounds like you're doing it just right). But if it becomes a concern usually it works for the worse in vain aggressive attempts to 'beat the Markets'.

A move to F Fund - especially in light of many thinking we're on the way up to a fairly beautiful and sustained RALLY - is very admirable. It takes a lot of courage to go against the grain - make your own calls.

Excellent Job !!