AJ's Disclaimer: I don't know **** about mutual/market/investment funds With that said.... From past posts, I have seen that several of you (Jiffy, Terry, ???) have some pretty good insight on investment strategy. So.... I have a TSP account through the Govt. Currently I have 100% of my TSP deductions going into a G fund. So here's my question(s) for anyone who would like to give me some advice: If I did 20 years with the Govt, I'd be looking at a retirement year of 2032. With that in mind, If I wanted to play it safe, I would be looking at maybe going with an L 2030 fund....right? Which from what I understand is a mixture of F,C, and S funds.....right?...which are designed to be a higher risk than the G fund I have, but are designed to be a pretty good risk....right? Anyway, if I'm off track on the above questions, someone set me straight. Here's what I want to know: Since I have investment time (20 years or so), and if I wanted to be risky for awhile (1-5 years????), what would some of you suggest? From what I understand is that the options I have through TSP are to do any combination of L funds, and or invest awhile in F,C,S,and I funds, or a combination of. Here's what I REALLY WANT TO KNOW: As of right now, what would POSSIBLY be the biggest gain I could hope for, if I invest into one or more of the options above, and I'm prepared to try it for say 5 years, which I think that I should be able to weather any storm that may hit my investment plan. Does that make sense?
Well, since the experts aren't biting...and you did ratchet your expectations down to "anybody"...I'll bite. Not being a civil service guy or part of the uniformed services I had to look up what all that stuff was. AJ, I have always been a believer in diversification. If you go all G funds your principal is safer but your return is much less. If you go with all S funds your potential (even probable) return is far greater but there is much more risk of loss. A lot of your decision should be based on just how much principal you are talking about and what part of your eventual retirement income you are talking about. If it is a relatively small portion and you have other assets then you can treat it as play money and put it all in aggressive funds. If it will be your major source of money in your retirement you need to be more careful and less risky. Statistical analysis of various portfolios has shown, I believe, that diversifying your portfolio between growth stocks, income producing stocks, fixed income products, and some international exposure adds much more potential return to the mix with less risk. What I'm trying to say is that the added potential return is much greater than the added risk. Being too conservative (all G funds) carries its own risk...insufficient growth. My own bias would be to come up with your own allocation (The classic used to be 100 minus your age should be in stocks and the rest in fixed income...now many advisers are thinking it should be higher. That would be 110 minus your age). So if you are 45 you should have maybe 65% in a mix of C, S, and I funds and 35% in the F fund and G fund. My bias would be to go light on the I and the G fund, but a little I is good. As the allocations change due to market changes you annually adjust the amount. For instance if the market has a bad year and goes down so that your S allocation is now only 55% at the end of the year, you BITE THE BULLET and sell some F and put it in the S and C funds so that you are back to 65% (make it 64% since you are a year older). This FORCES you to buy low and sell high, something we should strive to do. If the market does well you do the reverse and sell some stocks and buy some fixed. The other option, as you know, is to put most of the money into the L fund and let them make those choices for you. That is a fine idea and I really like the concept, but you have to make sure that the guy(s) running your L fund have the same philosophy that you have...what percentage of the fund will be in stocks and bonds at what age? (not everyone agrees). How much of the stocks will be in international? How much will be in small cap? Is the L fund aggressive enough for you as you grow older? Is it too aggressive? Do they put it all in G as you near retirement for the safety but get lousy returns? Is that what you want to do or would you rather it be more in the F type area? Also in the military folks retire at different ages. Is the allocation in the 2030 fund appropriate for your age? Then you also have to watch it to make sure they are indeed adjusting the allocation as time goes on. That's all I think I know. I'm sure Joel and Terry have a lot more valuable advice.
Those are great suggestions Stu, and it makes sense. Just to clarify, this pertains to the Fed Gov job I have now. I'm still getting my USMC retirement, and in a perfect world, I would like to be at a point where I can start to add that into the mix. I guess where I'm really going with this is....I feel that I could be very risky for the next 5 years investment wise, and from what I take from your suggestions is that I could possible roll the dice with C,S, and I funds and stay faithful and let it ride for say...2 years....and then take a look then? I know everything's a gamble, and that there are multiple combinations I could use, but right now I feel I could do a longshot for awhile, and just wanted some guidance for that. Like I said, right now it looks like those C,S, and I funds....I'm just not experienced enough to make a decision on something that I've never handicapped before. Does that make sense?
Damn Stu, impressive and logical! AJ, please send 65% of your money to me, I'll guarantee you'll get no less than 65% of it back after I take a trip to Pinehurst on it!
Sorry I already booked my caddie with this group. If only I knew you were available. 8) Caddy Service
:idea: My two cents... Fixed income is currently worthless. I wouldn't put anything into fixed income until there are bonds with decent returns. Growth funds are always a great bet, because the best ones are diversified for you. Over a 5-10 year period, if you close your eyes and don't follow it on a daily basis, a good blue chip growth fund should make a lot of money. If you have a blended fund, or dividend income fund, you can put some money in there on a regular basis and sleep well at night. They will always grow, because their dividends and/or bond returns compound on themselves over time. This makes them great long-term investments over a 10-20 year period. I hope this helps.
Husker, would be happy to help out....I need somebody to translate all the G and L and S stuff....I'm clueless. Stu, you figured it our, can you translate for me??? Sorry I've MIA, but I'm ass deep in trying to get a minor league baseball stadium built and bring a Braves affiliate into town.....good stuff
TBuck, don't forget to register for the football pick'em. I had to look it up. TSP accounts are government Thrift Savings Plans for civil servants and uniformed service members. They have set up index funds that participants can pick from, much like 401k accounts. the G fund is government securities the F fund is fixed income index fund The C fund is a common stock index fund The S fund is a small cap stock index fund The I fund is an international stock index fund The L funds are"Lifecycle Funds" that are basically targeted retirement funds managing your allocations based on how many years until retirement.
Thanks Stu...will do. Husker, I'll get back to you once I once I memorize Stu's translations.... :lol:
I looked it up, looks like you guys are in for a big fight. Sugar Land built a minor league stadium and don't even have a MLB affiliated team, play in an independent A league. Still they sold out this season. People love it out there, very family oriented. Also Astro's affiliate in Corpus Cristi (The Hooks) have been a big success going the family angle. Same for the "Diamond" in Austin which is older now but was sort of revolutionary when built by the Ryan family. No longer an Astros affiliate though.
STU.....great stuff...thanks for helping... Buck T....anything you can throw in the fire would be great... I'm really just looking to get expertise advice from you guys to make an educated decision on matters I have zilch knowledge of....and don't worry, I won't hold anyone accountable should I become broke in 5 years.... :lol: Remember, I'm willing to take a risk with the hopes it pays off in 5-10 years.... Thanks in advance!!
Highest potential return/highest risk would be to split it amongst the G,S, and I funds. To my way of thinking just picking one of them adds to the risk without really adding much to the rewards (unless you just happen to pick the right one.)
Yep, you got that right Doc....we're going referendum in the fall and I've been asked to manage the campaign! The funny thing is I'm now the pet whipping boyof the conservative radio talk show hosts....I'm a big spending liberal! lmao....it's hilarious. Poor dumb bastards..... I should start a topic and keep posting links for you guys to keep up and give me some encouragement while I'm swinging pinata like over the Cape Fear River after every beating!!!!
LOL>...I guess Josh Fulton won't be having you over for hamburgers and hotdogs on Labor Day!! :shock: :shock:
Sid, here is one we put up pre-campaign. We were trying to get it done without having to go through a referendum campaign, but the politicians got cold feet. We will be ramping it up and re-energizing for the campaign....if we get there....polling data has come back very discouraging...the effort right now is on life support. http://portcitybaseball.com/ TOK< Fulton is a tool as well as his butt-buddy, McCoy....a classic anti-incumbent political opportunist whose only answer is no.....nothing of substance, no vision, no leadership, no nothing of his own to offer. Only seeking any forum from which to attack those in positions he seeks but for which he has already been found to be unworthy. No, we won't be spending Labor Day together!