Federal employee, how do you choose your TSP investment?

[Anonymous]

I did my own mix of the C, G, and I funds. Until the L funds outperformed this. So now I am in the L 2050 fund.

[Anonymous]

Anonymous wrote:I did my own mix of the C, G, and I funds. Until the L funds outperformed this. So now I am in the L 2050 fund.

My only problem is the huge F fund allocation right now. That's a bad investment at this time. You could just copy everything they have for the 2050 and set goes up like that but allocate the F into something else.

[Anonymous]

CSI for sure
Although this year hasn't been fantastic, 34-36% the last two years.

[Anonymous]

Anonymous wrote:OP My eligible retirement date is 2039, I'm in L2040 now, but am thinking of shifting to L2050 and giving it a shot.

My eligibility date is 2037 And I've been doing c,s,I at 35/35/30

2013 = 32.31%, L50 was 26.2
2012 =17.2%
2011 = -2.14%
2010 = 33.58%
2009 = -32%

Almost 3 year is 12.4% for L2050

[Anonymous]

Anonymous wrote:C 65%
S 20%
I 15%

done.

From 2003 to 2014, the performance shows:

10 year compound: G 3.39%, F 4.65%, C 7.44%, S 10.43%, I 7.08%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I did my own mix of the C, G, and I funds. Until the L funds outperformed this. So now I am in the L 2050 fund.

My only problem is the huge F fund allocation right now. That's a bad investment at this time. You could just copy everything they have for the 2050 and set goes up like that but allocate the F into something else.

Huge allocation??? the F fund is under 4% of the portfolio. Plus people have been predicting bonds to get hammered for 5-10 years and the F fund has done pretty well over that time. No one knows what'll happen, but I feel pretty confident 4% in the F fund is not going to hurt anyone.

[Anonymous]

If you're young, consider going all C fund. If the market is tanking dismally for so many years then the fundamentals of this country's economy will be in danger. In any event. If you're unfortunate enough to be stuck in govt decades later, obviously you'll want to switch to more conservative options.

[Anonymous]

Anonymous wrote:If you're young, consider going all C fund. If the market is tanking dismally for so many years then the fundamentals of this country's economy will be in danger. In any event. If you're unfortunate enough to be stuck in govt decades later, obviously you'll want to switch to more conservative options.

I never like any "all eggs in one basket" strategy.

"The market" is a collection of sub-markets and they wax and wane in somewhat cyclical (or more unpredictable) patterns. Locking yourself into only one guarantees that you will miss any upswings by other parts of the market and that you will fully lock in and take a hit from any downswing. And remember it's much harder to gain back what you've lost once that happens, so protecting your downside is IMO more important that looking for that big gain.

If you take a 30% hit you have to then get a 40%+ just to get back to where you started.

I'd overweight C compared to S & I now but I wouldn't go all in on any of the funds, ever. Diversity, even in small bits, helps cover you. As my grandfather, a stockbroker, said (he didn't make it up), "bulls make money and bears make money, but hogs get slaughtered."

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you're young, consider going all C fund. If the market is tanking dismally for so many years then the fundamentals of this country's economy will be in danger. In any event. If you're unfortunate enough to be stuck in govt decades later, obviously you'll want to switch to more conservative options.

I never like any "all eggs in one basket" strategy.

"The market" is a collection of sub-markets and they wax and wane in somewhat cyclical (or more unpredictable) patterns. Locking yourself into only one guarantees that you will miss any upswings by other parts of the market and that you will fully lock in and take a hit from any downswing. And remember it's much harder to gain back what you've lost once that happens, so protecting your downside is IMO more important that looking for that big gain.

If you take a 30% hit you have to then get a 40%+ just to get back to where you started.

I'd overweight C compared to S & I now but I wouldn't go all in on any of the funds, ever. Diversity, even in small bits, helps cover you. As my grandfather, a stockbroker, said (he didn't make it up), "bulls make money and bears make money, but hogs get slaughtered."

meant to say "you will fully lock in and take a hit from any downswing in your single sector" (of course) ...

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you're young, consider going all C fund. If the market is tanking dismally for so many years then the fundamentals of this country's economy will be in danger. In any event. If you're unfortunate enough to be stuck in govt decades later, obviously you'll want to switch to more conservative options.

I never like any "all eggs in one basket" strategy.

"The market" is a collection of sub-markets and they wax and wane in somewhat cyclical (or more unpredictable) patterns. Locking yourself into only one guarantees that you will miss any upswings by other parts of the market and that you will fully lock in and take a hit from any downswing. And remember it's much harder to gain back what you've lost once that happens, so protecting your downside is IMO more important that looking for that big gain.

If you take a 30% hit you have to then get a 40%+ just to get back to where you started.

I'd overweight C compared to S & I now but I wouldn't go all in on any of the funds, ever. Diversity, even in small bits, helps cover you. As my grandfather, a stockbroker, said (he didn't make it up), "bulls make money and bears make money, but hogs get slaughtered."

Depends. One never wants to lock in losses either. Invest based on your research and instincts, not on corny slogans.

[Anonymous]

OP, Why don't you put 50% in one or two L fund as your age appropriate, and 50% in C, S, I fund.

[Anonymous]

Anonymous wrote:100% C - all stock, 650k saved 15 years to go.

A guy happily retiring in two weeks just told me to do this yesterday. That and to start using VIP now because there are added tax savings and workarounds available that way. Does anyone have any advice on the latter?

[Anonymous]

Anonymous wrote:

Anonymous wrote:100% C - all stock, 650k saved 15 years to go.

A guy happily retiring in two weeks just told me to do this yesterday. That and to start using VIP now because there are added tax savings and workarounds available that way. Does anyone have any advice on the latter?

What is this?

[Anonymous]

OP - just do a Lifecycle fund.

[Anonymous]

Anonymous wrote:OP - just do a Lifecycle fund.

Not OP, but what is lifecycle fund?