Totally ignorant

[licollaz]

Hello everyone!

Ok, have to admit. Totally ignorant about what to do. Need your help:blink:

Question: When distributing my contributions, how do I take into consideration the cost of the shares? The higher the share, the better?

Also, where can I find simple basic information on all of this?

Thanks in advance !

 

[JTH]

Everything starts with www.tsp.gov read through the fund sheets to understand what you're investing in and know that share price does not always equate with share value. Aside from that, read, read, read, and read some more.

Best of luck and welcome to the forum!

 

[Birchtree]

Your contributions will be done on a specific day and the price that day is what you pay. Now the longer a price stays low the more shares you acquire - and the name of the game is to accumulate shares. Once you have substantial shares then you can make even more money with minimal active management. And don't worry, sometimes the less you know the better off you are. You'll have plenty of time to learn before you churn.

 

[nnuut]

Welcome to the Message Board, isn't learning fun? This is the place to do it!
Best of luck

Norman

 

[Steadygain]

Question: When distributing my contributions, how do I take into consideration the cost of the shares? The higher the share, the better?

First - we're delighted to have you join us -- and I really mean that.

NOW - to answer your question. There are 2 underlying methods that most people use to adjust their TSP shares that have substantial credibility. NATURE - NURTURE

1. Nature - There are 'cycles' or 'waves' beyond mankind's control and despite what we may believe about our conditions (and this is at any given period in history) - these 'Cycles' or 'Waves' are indisputable and following them -- means ignoring everything else.

2 Nuture - Mankind largely determines the economic conditions by which the Markets rise (or fall). Those who hold to this understand how and why the FED has lucked out until this current Recession and all the more know how close another disaster was avoided by another 'bubble' emerging.

The 'Cost' of the shares makes absolutely no difference at all. Here it is simply having the BULK in 'Safety' when weakness and 'falling Markets' are most likely to dominate a 3 to 6 month period -- or being 'Fully Invested' when they are strong and gaining stregth.

I would recommend G Fund for 'Safety' and splitting C,S,I for 'Strength'.

Steady

 

[tsptalk]

Welcome licollaz!

 

[SteveTSP]

I would also like welcome you to the forum and offer you an opportunity to ask any quetion via a PM to me (if you like). I am not smart on how to invest but know the mechanics of how TSP works. This forum is aswesome but can be tough to figure out what people are saying since this is old hat for so many members. Only time and reading will help directly. But I wanted to make sure you have the opportunity to ask anything no matter how advanced or basic your question may seem to you.
Steve

 

[licollaz]

Thank you all for the responses. I have read and read through the last year and still confused. This is not easy stuff.

Do you all share your own recommendations? I mean can someone tell me how is investing with good results?

 

[licollaz]

I would also like welcome you to the forum and offer you an opportunity to ask any quetion via a PM to me (if you like). I am not smart on how to invest but know the mechanics of how TSP works. This forum is aswesome but can be tough to figure out what people are saying since this is old hat for so many members. Only time and reading will help directly. But I wanted to make sure you have the opportunity to ask anything no matter how advanced or basic your question may seem to you.
Steve

Steve, thanks for your offer. I really appreciate it. I will take your offer.

L

 

[licollaz]

Steady, thanks for your advise.

 

[licollaz]

Steve, what is PM?

 

[tsptalk]

Do you all share your own recommendations? I mean can someone tell me how is investing with good results?

Most members do post their transactions here...
http://www.tsptalk.com/tracker/tsp_user_balance_all.php

... and they talk about the hows and whys in their "Account Talk" threads here ... http://www.tsptalk.com/mb/forumdisplay.php?f=12.

The autotracker is here - http://www.tsptalk.com/tracker/tsp-tracker.php. You can look through that info and see what everyone is doing.

Also, PM = Private Message. It's in the top right of every page, just below the advertisment.

 

[Boghie]

You want the market to tank on the day you make your paycheck contribution - and dramatically rise with the sun on the next day

The way you split your contributions is dependent on how much risk you are willing to take. That risk changes with the price (value) of the funds over time - but all that stuff can be complicated.

For example, most now find the 'F Fund' to be 'overvalued'. They think it is in a bubble like the tech stocks of 2000 and housing of 2007. Maybe not that bad, but kinda bloated...

As another example, in March of 2009 the 'C Fund' was priced at about $7 bucks. We call that 'undervalued'. Yummy, very yummy. When the market gives you that kind of value (the funds are 'on sale') bump up your paycheck contribution and buy lots of C/S/I.

Anyway, I would recommend setting your contributions to:

40% C
30% S
30% I​

Then, when you get a little nest egg, think about rebalancing your TSP asset allocation to something you feel comfortable with. I generally recommend two books to help - Ric Edelman's 'The Lies About Money' and 'The Truth About Money'.

Some bubbas do it a bit different. They use their paycheck contributions to buy the slow movers (G and F Funds) and then rebalance their 'holdings' (what they have in their accounts) as they see fit. I would save that for later. You don't want to be sitting around ten years from now with thousands of dollars squatting in the 'G Fund'. That is a certain 'Alpo Meal Deal Retirement Plan'.

Good luck and happy hunting...

 

[SteveTSP]

Just like Tom said. PM is on the upper right of the web page and I sent you one. You should have a notification icon showing that I sent you a PM this morning with some additional thoughts on the subject. Good luck and keep posting on the forum. OBTW, there is light at the end of the tunnel! Steve

 

[Steadygain]

Steady, thanks for your advise.

You're welcome! and I'm sorry it took so long to see this response.

Listen my friend and I honestly mean this -- I'm going to tell you the most important information possible.

The TSP - is a 'Retirement Plan' and is totally meant for 'RETIREMENT' and not for a bunch of other things....

1. Invest as much as you can from the very beginning and keep that going as long as you're a Federal Employee ... and that means until you RETIRE.

I started off putting in 15% - then went to 16% after my first across the board increase. They put in 1% and match 4% - so that's an extra 5% every 2 weeks.

YOU may have to make adjustments to your LIFE STYLE by going as high as you can (15 to 16%) - (or the MAX) - but it is well worth the adjustments and almost immediately it does not feel like 'You're poor' and Life is HARD.

2. This TSP (Savings Plan) is like no other --- and getting a guaranteed 5% Match over months and months for as long as you work is amazing.

3. The overwhelming odds are 'IF YOU TRY TO TIME THE MARKETS ON A SHORT TERM BASIS' - over and over - YOU WILL LOSE !!!

At this point -- and here we are dealing with Present History and that is NO GUARANTEE of Future Returns -- the 'Sentiment Survey' is the Greatest Possible Tool for TSP Returns.

So at this point -- it's important to ignore anyone's specific advice (because there are many experts and you'll get more confused). Look only at the Sentiment Survey and 'Adjust Accordingly'.

4. This is perhaps the MOST IMPORTANT -- Look at how much you actually put into your TSP Account and strive to NEVER let it fall below that collective amount.

For me personally -- that gives you lots of playing room -- but when you come close to reaching your BASE INVESTMENT - go to safety and stay there ---- especially during times of volitity or until you have some room to play.

Hope that helps. I never 'Yell' -- so if I capitalize something it's only to stress what I'm saying.

God bless you my friend -- it's wonderful having you with us.

Steady

 

[FAB1]

The general mood of this MB is to Sell hi and Buy Low meaning dont be deep in equities when the market heads south...not always an easy thing to accomplish because we as humans beings are generally, Greedy!

Then there is the Buy and Hold method and that is also a popular way to invest. What goes up must come down and vice versa and you just stay the course - some users made 50% that way last year in the I fund but this year the S fund so far seems to be the market leader.

Most of all DO invest in equities (stocks) in some capacity if you want your TSP to grow.

Some Suggestions:

1) Avoid "perma Gfund" investment (you'll never beat the cost of living)

2) Read Birchtree's thread (with reservation and for occassional laffs :toung

2a) Read Mr. Crowley's daily column and if necessary PM him for clarification when all the little lines on his graphs get too confusing. (notice I said "WHEN" and not "IF")

3) Do not Go To (TSP) Jail, (ask Burrocrat...or Birchtree!)

4) Observe and follow the leaders like "Intrepid Trader" (or whoever the board leader is!)

5) Explore all the link on the site and have fun.

Whew! havent said that much in a few months, see yall back here in 2011 :laugh:

 

[prometheus]

For a good read on how top TSPers manage their accounts, check out my Top TSP tool. If you find it useful, just bookmark, & it will update within an hour of the latest Auto Tracker results.

Some Suggestions:

4) Observe and follow the leaders like "Intrepid Trader" (or whoever the board leader is!)