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Return to Article: TSP funds continue to slide in October

• 62912
  

  The only upswing that will be happing soon will be taxes such as on 401Ks and Capital Gains. Nobody will want to be in the market and see their earnings being 'redistributed'.

  The only smart money right now is in the G fund like I have been since early October.

  DOD employee Posted November 12, 2008 3:13 PM
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  I'm a union memeber and either the government or the union should cover these losses. I'm a fed and everything I do is protected and since I'm not accountable of the job why should I be held accountable for my investments its just not fair

  dan m ketter Posted November 10, 2008 4:15 PM
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  Now would be a great time to increase your contributions if you're not worried about the bottom totally falling out of the market. Shares are cheap. Whatever you do, don't miss the upswing!!!

  Jim Posted November 10, 2008 11:03 AM
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  any thoughts on timing a move to a lifecyle fund? does it matter when and if I move the whole of my account into an L-cycle or just change my NEW contributions into an L-cycle?

  gav Posted November 8, 2008 9:02 PM
• 62540
  

  Hey Mudpie,

  what if Barclays doesn't get a bailout? Are you saying our TSP maybe in harms way?

  The BEAR Posted November 6, 2008 12:11 PM
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  One point that has been largely overlooked is that October's steep declines were mitigated for those investing in the L funds. Besides being very well-diversified, the L funds are automatically rebalanced every business day. That means, in effect, that when the market experiences steep declines, holders of an L fund get to purchase additional shares of the underlying stock funds (C fund, S fund, and I fund) at fire sale prices. They do so by selling shares that have gone up (or those that have not declined to the same extent), such as shares in the G fund or F fund. This is selling high and buying low, which is a recipe for long-term investing success. In contrast, those who try to time the market often end up doing the opposite - buying high and selling low, which is a recipe for significantly lower long-term returns.

  Daniel Posted November 6, 2008 9:59 AM
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  For those of you who do not know, Barclay's, the TSP funds manager is lining up for a bailout from the UK govt. as we speak.

  mudpie Posted November 5, 2008 3:38 PM
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  I am 55yrs and i want to retire in the next 3 to 4 years. I have most of my money going to the G fund. about 65% and the rest in the I and C funds. i heard that the Goverment was planing on taking our G fund?? at this point am i going down the tubes.

  Deborah Posted November 4, 2008 1:23 PM
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  WoW. Great performance. Aren't you glad you hold index funds? You get the Lehmans, the Bear Stearns, the Washington Mutuals, the Freedie Mac and Fannie Maes all included for free! Buy more before they fall lower!

  Tony Clifton Posted November 4, 2008 1:23 PM
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  Nathan, With the current drop in the stock market you are buying shares cheaper than anyone has in years so in essence you are buying more shares for the same amount of money.

  Put in as much as you can afford now and it will help grow your account value later on! I personally maxed out my contribution to the IRS limit back in July and have increased the number of shares dramatically!

  Tom Posted November 4, 2008 10:59 AM
• 62330
  

  as being a federal employee and investing in the TSP, is it a good idea to keep putting money into the S fund even though I still have at least 20 years of work left before retirement?

  Nathan Hutchinson Posted November 4, 2008 10:16 AM
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  Things are not looking good for the C fund.

  Ken & Pam Posted November 4, 2008 7:37 AM