TSP Investment

[ecmpdx]

1st time poster

I am a beginner investor and i would like to increase the growth of my money at a faster pace, i am currently invested as follows. 30% G, 40% S, 20% C, 10% I .

Is this a good division of funds to increase my growth , or should i change the division of funds for better growth at a faster pace.

 

[RealMoneyIssues]

ecmpdx, first off welcome to the board.

To touch on your question... The answer you are looking for can only be provided by a qualified financial person, and if my memory serves me right, none of us are. With that said, if you are looking for a place to plan your TSP as an investment, I don't think this site is specifically what you are looking for... The folks here move their money based on market changes in expectations of beating the buy and hold strategy (aka investing). There are some very prominent Buy and Holders here (uh, Birchtree comes to mind) but then again, most are not positioning their TSP funds in a "diversified" manner like you are describing.

However, I would highly recommend you take some time and read through the forum posts, search for answers using the search functionality, and then if you can't find a specific answer make an entry and folks will answer best they can...

My funds were spread out similar to yours, 5% G, 5% F, 40% C, 25% S, and 25% (did 14-15% last year) I before I decided to take charge. If I had stayed at that, I would have lost 5% last year. Since deciding to take control, I made 6% (however, I would have made more had I not made a bad move in August costing me 15%). Take a look at the people at the top of the Autotracker and see what is possible.

I hope this helps.

Good Luck !!

 

[SteelSaving]

Just for the record, could anyone offering advice on the site to a fellow such as this get themselves or the website in trouble?

 

[nnuut]

Best of luck with your investments ecmpdx, and welcome to the Message Board.
Norman

 

[Show-me]

Just for the record, could anyone offering advice on the site to a fellow such as this get themselves or the website in trouble?

Not until you start getting paid to give the advice.

 

[RealMoneyIssues]

My funds were spread out similar to yours, 5% G, 5% F, 40% C, 25% S, and 25% (did 14-15% last year 2010) I before I decided to take charge. If I had stayed at that, I would have lost 5% last year (2011). Since deciding to take control, I made 6% (2011) (however, I would have made more had I not made a bad move in August costing me 15%). Take a look at the people at the top of the Autotracker and see what is possible.

clarification

 

[nasa1974]

Just for the record, could anyone offering advice on the site to a fellow such as this get themselves or the website in trouble?

SteelSaving,

I hope everyone has read the "Rules, TOS & Info" thread. Link below.

http://www.tsptalk.com/mb/forumdisplay.php?42-Rules-TOS-amp-Info-Please-Read

This link is for the "Rules, Guidelines and TOS" thread

http://www.tsptalk.com/mb/showthread.php?3295-Rules-Guidelines-and-TOS


In part this is what is in the "Rules, Guidelines and TOS" thread says:


Regarding Investment Advice:

We want to make this clear:

TSP Talk provides a forum for investment and trading discussion, as well as samples of investment research. TSP Talk.com and TSP Talk does not warrant any of the information posted here, nor does such constitute investment advice by our posters or us. We do not endorse any service that advertises on the site, or any poster who discusses his trades on the site.

Let us repeat: We are NOT your investment advisor. Do NOT take any action based upon what you read at this site without seeking independent confirmation as well as competent professional advice.

In other words, your decisions are your own. If you don't have a signed contractual agreement with US, then what you read here is NOT investment advice to you, no matter what you think it looks like.

Hope this helps.

 

[nnuut]

SteelSaving,

I hope everyone has read the "Rules, TOS & Info" thread. Link below.

http://www.tsptalk.com/mb/forumdisplay.php?42-Rules-TOS-amp-Info-Please-Read

This link is for the "Rules, Guidelines and TOS" thread

http://www.tsptalk.com/mb/showthread.php?3295-Rules-Guidelines-and-TOS


In part this is what is in the "Rules, Guidelines and TOS" thread says:


Regarding Investment Advice:

We want to make this clear:

TSP Talk provides a forum for investment and trading discussion, as well as samples of investment research. TSP Talk.com and TSP Talk does not warrant any of the information posted here, nor does such constitute investment advice by our posters or us. We do not endorse any service that advertises on the site, or any poster who discusses his trades on the site.

Let us repeat: We are NOT your investment advisor. Do NOT take any action based upon what you read at this site without seeking independent confirmation as well as competent professional advice.

In other words, your decisions are your own. If you don't have a signed contractual agreement with US, then what you read here is NOT investment advice to you, no matter what you think it looks like.

Hope this helps.

And that's the way it is, and has always been!

 

[Mapper]

In response to the original question. The first thing you want to think about is whether or not you want to actively manage your fund allocations or "set it and forget it". This site is devoted to the idea of actively managing your allocations.

As such, the vast majority of active members on this site actively change their allocation and money distribution among the different funds. TSP account holders are allowed to change allocation 2x per month, it's called an inter-fund transfer (IFT). After 2 IFTs per month you are always allowed to return any funds to the "G" fund, which is the the equivalent of cash or "safety". Many users here call the G fund the "lily pad".

If you choose to actively manage your fund allocations you may be able to beat the "set it and forget it" buy and hold approach. However, and this is very important, you will spend a significant amount of time learning about and following markets. Also, and this is more important, there will be times when you will see yourself losing money hand over fist...some people don't have the stomach for this and wind up making choices that can seriously prolong those losses. Markets go up and down...the goal is to "buy low" and "sell high". It is very easy to freak out when you are losing money and wind up selling low...then markets turn around and start soaring...so you end up buying high. Tough to make money with a reactive approach like that.

So, as you see, to do well you will be spending a lot of time determining how to move and allocate your money. As you learn you will determine how you want to allocate your money among the different funds. Much of your allocation decisions depend on your willingness to see occasional losses in the pursuit of gains, this is what financial folk refer to as your "risk tolerance". Much of your risk tolerance depends on your greater financial situation, your age, and your retirement plans.

Hope that helps. Keep reading and we hope to hear more from you.

 

[SteelSaving]

SteelSaving,

I hope everyone has read the "Rules, TOS & Info" thread. Link below.

http://www.tsptalk.com/mb/forumdisplay.php?42-Rules-TOS-amp-Info-Please-Read

This link is for the "Rules, Guidelines and TOS" thread

http://www.tsptalk.com/mb/showthread.php?3295-Rules-Guidelines-and-TOS


In part this is what is in the "Rules, Guidelines and TOS" thread says:


Regarding Investment Advice:

We want to make this clear:

TSP Talk provides a forum for investment and trading discussion, as well as samples of investment research. TSP Talk.com and TSP Talk does not warrant any of the information posted here, nor does such constitute investment advice by our posters or us. We do not endorse any service that advertises on the site, or any poster who discusses his trades on the site.

Let us repeat: We are NOT your investment advisor. Do NOT take any action based upon what you read at this site without seeking independent confirmation as well as competent professional advice.

In other words, your decisions are your own. If you don't have a signed contractual agreement with US, then what you read here is NOT investment advice to you, no matter what you think it looks like.

Hope this helps.

Yes, it does, thanks.
Just wanting to make sure nothing hurts this site.
I don't like it when people just ask "What should I do with my TSP?" And seem to expect an easy answer to fix everything.
It's not that easy, got to stay on top of it, read up, and be ready to expect losses and learn from them.

 

[Afishegg]

My near term strategy is called. ....."stay and pray"!

 

[nasa1974]

Yes, it does, thanks.
Just wanting to make sure nothing hurts this site.
I don't like it when people just ask "What should I do with my TSP?" And seem to expect an easy answer to fix everything.
It's not that easy, got to stay on top of it, read up, and be ready to expect losses and learn from them.

We understand your concern. If you notice most of the long timers here (do not want to use the term old timers ) usually suggest or say "in my opinion". I have not seen anyone say you should do this or do it that way. But I guess it never hurts to remind us once in awhile.

 

[Fran1775]

Great advice

I have been doing exactly what you have said for s few years now and am excited that I found this site. I am looking to diversify and to utilize my eft's to their Max potential.

In the last few weeks I have learned alot here and I am ready to learn more.

I am currently riding on this wave of the potential bull market with a 70% S and 30% I and have been holding their Steady since Aug. of last year.

I am trying to figure out this site and how to navigate and get involved. Any advice or information is greatly accepted.

Thanks

 

[RealMoneyIssues]

Re: Great advice

I have been doing exactly what you have said for s few years now and am excited that I found this site. I am looking to diversify and to utilize my eft's to their Max potential.

In the last few weeks I have learned alot here and I am ready to learn more.

I am currently riding on this wave of the potential bull market with a 70% S and 30% I and have been holding their Steady since Aug. of last year.

I am trying to figure out this site and how to navigate and get involved. Any advice or information is greatly accepted.

Thanks

Welcome and congrats on your current success!!!

Tons to learn here and people much more learned than me will post for you.

Again, welcome

 

[nasa1974]

Re: Great advice

I have been doing exactly what you have said for s few years now and am excited that I found this site. I am looking to diversify and to utilize my eft's to their Max potential.

In the last few weeks I have learned alot here and I am ready to learn more.

I am currently riding on this wave of the potential bull market with a 70% S and 30% I and have been holding their Steady since Aug. of last year.

I am trying to figure out this site and how to navigate and get involved. Any advice or information is greatly accepted.

Thanks

Fran, You have figured out how to post and that is a good start. Start up your own thread in the members account section and you are on your way.

 

[nnuut]

Re: Great advice

Welcome Fram1775 and best of luck.
Norman