ruffryder_261976
New member
Hello ALL!!
I have been reading alot of post and threads and seen some account information. I figured that I would share a little of my knowledge with everyone and explain the method to my madness which has given me a PIP of %25+.
My allocations are as Follows and I will explain my reasons in depth. You feedback and critisim is wanted as well as questions.
G Fund (Government Securities) 40%: The G Fund invests in short-term U.S. treasuries. Principal is guaranteed
Reason: Your money here is guaranteed a return. Meaning you will never lose what you put in. The "Monthly" return rate varies from .0156 cents per share to .0257 per share. So it ALWAYS earns which is why it is Guaranteed.
F Fund (Barclays) 0%: The F Fund is invested in the Barclays U.S. Debt Index Fund. When yields move lower, bonds go up in price and the F fund goes up in value. When yields move higher, bonds go down in price and the F fund goes down in value.
Reason: Your return is based off of the US debt. As we all know, it is currently like 13 Trillion and rising. What they dont tell you is the US pulls from the intrest of bonds to continue lending to consumers. If the consumer doesnt pay back or defaults, it affects the market. If you want to lose 5% or more of your contribution, then this is the way to go. If not, stay out of it until Apr-May of next year.
C Fund (Common Stock) 30%: The C Fund invests in the Barclays Equity Index Fund which tracks the S&P 500, the 500 largest U.S. companies being traded. The S&P 500 stock market index, maintained by Standard & Poor's, comprises 500 large-cap American companies covering about 75% of the American equity market by capitalization.
Reason: Some of the 500 largest companies are Abercrombie & Fitch Co., Adobe Systems, American Express, Bank of America Corp., Boeing Company, Charles Schwab, Cisco Systems, just to name a few. If you watch alot of these companies you will see that more than half of them have great climbing rates.
S Fund (Small Cap) 15%: The objective of the S Fund is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index and those companies not included in the S&P 500.
Reason: This fund focuses mainly on small business or LLCs which make up the entire stock market. Where one fails, one succeeds. This stock market cap is an area you have to watch closely as it is high risk. So I put less than a 1/4 of my contrubutions here. The up side is, when is does rise, it rises fast simular to the I fund.
I Fund (The international fund) 15%: This is comprised of all the stocks overseas and most recently has the strongest tie to the Euro. The countries debt is also a contributing factor.
Reason: This stock is the money maker and loser. If you are wise and watch closely, it has its peek during certain portions of the month. It varies from 2$ to 5$ in either direction and is considered a high risk option.
My Strategy
Lets start with the first of any given month. My allocations are distrubuted as listed above. 40/0/30/15/15. Between the 1st and on or about the 23rd, the C, S and I funds are relatively low from the previous month. A great time to buy in. In my research on each all of the funds involved (to include the actual stock markets) the is a peak for the month that lasts for about 3 days. This is where you earn your money. At the end of the 3rd day (on or about the 26th) I do an interfund transfer of 100% to the G fund, banking the interest I have earned during those days. This raises my invested earnings for the month and secures the interest I have accumulated. 2 days after the IFT I re-distribute my allocations again the same way as before (40/0/30/15/15) because the share prices have dropped since the IFT to the G fund. Meaning I have more money but I am relatively buying back shares for the initial price.
I have done this for the last 4 years and have always maintained a %25+ PIP. My highest PIP ever was 38.72%.
If you have questions or comments, please feel free to ask or tell.
Chris
I have been reading alot of post and threads and seen some account information. I figured that I would share a little of my knowledge with everyone and explain the method to my madness which has given me a PIP of %25+.
My allocations are as Follows and I will explain my reasons in depth. You feedback and critisim is wanted as well as questions.
G Fund (Government Securities) 40%: The G Fund invests in short-term U.S. treasuries. Principal is guaranteed
Reason: Your money here is guaranteed a return. Meaning you will never lose what you put in. The "Monthly" return rate varies from .0156 cents per share to .0257 per share. So it ALWAYS earns which is why it is Guaranteed.
F Fund (Barclays) 0%: The F Fund is invested in the Barclays U.S. Debt Index Fund. When yields move lower, bonds go up in price and the F fund goes up in value. When yields move higher, bonds go down in price and the F fund goes down in value.
Reason: Your return is based off of the US debt. As we all know, it is currently like 13 Trillion and rising. What they dont tell you is the US pulls from the intrest of bonds to continue lending to consumers. If the consumer doesnt pay back or defaults, it affects the market. If you want to lose 5% or more of your contribution, then this is the way to go. If not, stay out of it until Apr-May of next year.
C Fund (Common Stock) 30%: The C Fund invests in the Barclays Equity Index Fund which tracks the S&P 500, the 500 largest U.S. companies being traded. The S&P 500 stock market index, maintained by Standard & Poor's, comprises 500 large-cap American companies covering about 75% of the American equity market by capitalization.
Reason: Some of the 500 largest companies are Abercrombie & Fitch Co., Adobe Systems, American Express, Bank of America Corp., Boeing Company, Charles Schwab, Cisco Systems, just to name a few. If you watch alot of these companies you will see that more than half of them have great climbing rates.
S Fund (Small Cap) 15%: The objective of the S Fund is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index and those companies not included in the S&P 500.
Reason: This fund focuses mainly on small business or LLCs which make up the entire stock market. Where one fails, one succeeds. This stock market cap is an area you have to watch closely as it is high risk. So I put less than a 1/4 of my contrubutions here. The up side is, when is does rise, it rises fast simular to the I fund.
I Fund (The international fund) 15%: This is comprised of all the stocks overseas and most recently has the strongest tie to the Euro. The countries debt is also a contributing factor.
Reason: This stock is the money maker and loser. If you are wise and watch closely, it has its peek during certain portions of the month. It varies from 2$ to 5$ in either direction and is considered a high risk option.
My Strategy
Lets start with the first of any given month. My allocations are distrubuted as listed above. 40/0/30/15/15. Between the 1st and on or about the 23rd, the C, S and I funds are relatively low from the previous month. A great time to buy in. In my research on each all of the funds involved (to include the actual stock markets) the is a peak for the month that lasts for about 3 days. This is where you earn your money. At the end of the 3rd day (on or about the 26th) I do an interfund transfer of 100% to the G fund, banking the interest I have earned during those days. This raises my invested earnings for the month and secures the interest I have accumulated. 2 days after the IFT I re-distribute my allocations again the same way as before (40/0/30/15/15) because the share prices have dropped since the IFT to the G fund. Meaning I have more money but I am relatively buying back shares for the initial price.
I have done this for the last 4 years and have always maintained a %25+ PIP. My highest PIP ever was 38.72%.
If you have questions or comments, please feel free to ask or tell.
Chris
