Pill's Account Talk

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Boghie,

Thanks for the response! I'm not near retirement yet. I have 15 left at the earliest. This is the first time I have been through anything like this. I don't have a clue about what is going on, and if you follow the bears or media it’s all doom and gloom. One thing I do know is I am securing excellent prices on the funds, and I plan to keep doing it rain or shine(all the way down and all the way up). Every once in a while the media gets to me and all I need is shot of Birchtree and then I am back on track.

So with the way the market is I don't have much to say. Just listening and learning as much a possible. I like to keep it simple, buying up and down, trying to max out both TSP and ROTH, but haven't quit got there yet. Hoping the dream the is there when I get there!

Good luck and thanks for all your input on the board.
 
Re(1): InflationData.com

Pill, and others interested in the inflation rate...

Here is a tremendous site for studying inflation. For those who don't like to crack the books - or did so years ago like me (and didn't really enjoy it) - the site pointed to is a YOY inflation chart by month for the past ten years.

The chap is working on the site a bit. The format changed for the better. However, the month headers aren't showing up. They start from January over the top.

Poking around is kinda cool. YTOD we have had a 0.75% inflation rate. To me - and probably Bullitt - that's lookin' a lot like Deflation (sung to the tune of 'Its starting to look a lot like Christmas'). Kinda interesting that the gubmint doesn't publicize that number, eh...


Note: Tom, the inflation chart linked above might be worth a link somewhere if folks have made requests for inflation data.
 
Pill,

Unfortunately the days of wine and roses are over. By that I mean people interested in accumulating shares via dollar cost averaging will never see the $8, $9, $10, $11, $12 prices again. From this point going forward it will take more money to collect the same amount of shares. I actually prolonged my retirement by an extra year so that I could benefit from so many golden prices in 2009. Now it's time to ride the bull and see how far and how long the ride will last. You still have the opportunity to accumulate shares back to the previous highs - so not all is lost. I think the 07 peak on the C fund was $17.54.
 
Birch,

Pill chewed that fat like you and I over the downturn. He has only been buying equities if an earlier post is still in affect.

Many a tasty meal over the past couple/three years.

I've increased my contributions in the teeth of this thing and contribute 40% in C, 30% in S, and 30% in I. I think Pill is doing the same.

He/She didn't miss a thing:)

Yummy

Birchtree said:
Pill,

Unfortunately the days of wine and roses are over. By that I mean people interested in accumulating shares via dollar cost averaging will never see the $8, $9, $10, $11, $12 prices again. From this point going forward it will take more money to collect the same amount of shares. I actually prolonged my retirement by an extra year so that I could benefit from so many golden prices in 2009. Now it's time to ride the bull and see how far and how long the ride will last. You still have the opportunity to accumulate shares back to the previous highs - so not all is lost. I think the 07 peak on the C fund was $17.54.
Click to expand...
 
You got that right! I am enjoying that 7% I increased into my TSP during the down turn. And I will do it again next time it drops if I am not already maxed out.

I'm still sitting 50% I, 35% S, and 15% C. However, I need to shift my S and C fund soon.

I mainly decided to post today to share I increased my contributions up to 22%. Not to brag but to encourage others to look at what they contribute. Below is an email I got at work and decided to make the increase.

Birch- Thanks for this golden nugget! "I actually prolonged my retirement by an extra year so that I could benefit from so many golden prices in 2009." I hope to do the same if there is a major down turn going on during my final days in the work force.

Date: 14 January 2011

From: DON Benefits Officer
To: All Civilian Employees

Subj: TSP Savings Opportunity

1. The ''Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010'' provides that during 2011, but only in 2011, the Social Security tax rate paid by employees will be temporarily decreased from 6.2% to 4.2%. As a result, Civil Service Retirement System (CSRS) Offset and Federal Employees Retirement System (FERS) employees will see their Social Security withholdings decreased by 2%. The change in deductions will be reflected on the Leave and Earnings Statement under "Deductions" as "OASDI". Since CSRS employees do not pay Social Security, this change does not affect them.

2. This is a great opportunity for FERS and CSRS Offset employees to boost retirement savings. Think about saving the 2% in your Thrift Savings Plan (TSP) account. This could have a significant impact on amounts available for retirement, especially for younger workers who will earn a compounded return on the amount for decades. This action will also lower your federal and state income tax in 2011 as the contribution will be tax-deferred. The Social Security tax reduction is a TSP opportunity.

3. You can increase your TSP contributions electronically using the Employee Benefits Information System (EBIS) available at http://www.donhr.navy.mil/. Under the Benefits tab click on "EBIS".

4. If you have questions about TSP, call the Benefits Line at 888-320-2917 and select menu option #4 to talk to a Customer Service Representative (CSR). CSRs are available 7:30 a.m. to 7:30 p.m., Eastern Time, Monday through Friday, except on federal holidays. The TTY number for the deaf and hard of hearing is 866-328-9889.
 
Wanted to share my accomplishment. My TSP account just hit $100,006. :) It’s been a long 7 years getting here. But thanks to this board and the many on here, THANK YOU! Especially you Tom.

I am sitting 45 S and 55 I fund. With 100% going into the I fund.

Currently contributing 22% of my pay to TSP.
 
Now that you have hit 6 figures you can accumulate wealth a little faster. But remember your RISK also increases. Congratulations.
 
KneednDough said:
NICE. I have half what you have and have 8 years in. CONGRATS!!!
Click to expand...

I had some good advice from my Dad (retired fed employee). He said to contribute as much as possible and always look for ways to increase it. (meaning step and grade increases, and annual raise if we ever get back to those)

I haven't hit the $17,500 max yet but it’s my goal.

Hang in there and good luck to you!
 
Pill,

Along with more 'risk', you also have to learn to deal with the 'law of large numbers'. Remember, a 2% decline is now $2,000. Yowser. You will just have to get used to it. Losing over a week of pay in a day - or a few moments:p. Look at ratios and percentages. Otherwise you might end up in a brain freeze.

By the way, you've got one of the riskiest alloctions I have ever seen. Risk cuts both ways. It is basically a modified standard deviation. Quicken (using stats from 1957 onward) figures a normal annual return with your allocation is between -5% through +21%. Quite a swing. But you are looking very good.

Good to hear from you.
 
Boghie said:
Pill,

Along with more 'risk', you also have to learn to deal with the 'law of large numbers'. Remember, a 2% decline is now $2,000. Yowser. You will just have to get used to it. Losing over a week of pay in a day - or a few moments:p. Look at ratios and percentages. Otherwise you might end up in a brain freeze.

By the way, you've got one of the riskiest alloctions I have ever seen. Risk cuts both ways. It is basically a modified standard deviation. Quicken (using stats from 1957 onward) figures a normal annual return with your allocation is between -5% through +21%. Quite a swing. But you are looking very good.

Good to hear from you.
Click to expand...

Boghie- Good to hear from you. I'm still following everyone's comments although I haven't been posting much. The huge down turn taught me I don't know what I'm talking about. However I have picked up some golden nuggets along the way. Like to you don't lose until you sell, and share accumulation works. I got caught in the I Fund during the down turn so I decided to throw more at it until it rebounds. I think it will work. And if it does I will try the same strategy again (not just the I fund, any). Other than my situation I would like to be sitting 50% C, 30% S and 20% I Fund. I'm not sure what the future has in store but I would like to adjust my allocation once the I Fund hits 20% or so. But it might not get there any time soon.
 
Made an IFT today going 50 S and 50 I. I also finally shifted from contributing 100% to the I fund to match my position of 50 S and 50 I.

I have also reduced my TSP down from 22% to 10%, and am putting the max into my Roth IRA at Vanguard. Once I get the amount adjusted right I will probably increase my percentage into TSP. Or pay down debt with any left over.

I wasn't sure if maxing the ROTH IRA (currently I have 25K) would be better than maxing TSP (115k). I am age 37, and special category so I can retire at as early as 50 which is only 13 years away. Obviously the larger amount will grow faster, so I was a little torn on what to do. I do feel like throwing every thing at TSP would be better, but smarter people than I say use the ROTH. Any thoughts?

But anyways I went ahead and did it since every thing I read says, contribute to get the match, max the Roth IRA, then go back to contribute as much as you can up the max of $17,000.
 
Here are my past returns. Just thought I'd share and thank Tom for the site. I've learned allot over the years. Thanks everyone!
TSP RETURNS 2003-2012
2003 Started end of year but ended in the green
2004 17%
2005 12%
2006 17.72%
2007 4.77%
2008 -38.34%
2009 31.24%
2010 16.83%
2011 6.04%
2012 18.53%
So I'm still 50 S and 50 I Fund. I'll be maxing out my ROTH IRA this year at Vanguard and I just bumped my TSP % back up to 20%.

So Cheers to another green year!
 
Last edited:
I've stayed in both up and down and have no regrets. Loving the market right now. Even with BambyCare in the news. I haven't posted much because I have realized I don't really know as much as I think I do, and the down markets taught me that.

Right now be in to win, down market I feel the same. But any one can preach in a great market.

Cheers every one!
 
This week I passed a huge millstone for myself. Now I can use the word million associated to my accounts. Although its only .25 mil. Thanks TSP Talk.


I've only been investing for 10 years and started with nothing. Simple DCA works, save more than you think you need. Its better to back off savings later than realize later you didn't save enough.

401k
TSP
Roth IRA
 
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