I just got my quarterly statement. I am active duty and have been contributing to TSP for only 6 years, I been been pretty diversified with my funds and holding my money mostley in the lower risk funds, but still with the risk I took it was painful when I saw my statement. Every last bit of earnings I have made in the in TSP over the last 6 years has evaporated now and I actually saw about a 2% loss in my actual contributions. I should of just stuck yhat money under my mattress. I am now considering other options for investing/ saving for retirement. How much have you lost??
If you havent lost any in this bad market, what is your strategy!!!
I have only been contributing to the TSP now for only a year which started when I took a position with NOAA. I had contributions spread all over and last month moved everything into the G fund.
It will stay there for a while until the markets settle out.
Instead of focusing on the short term loss, you might want to think of it in terms of opportunity to purchase with Sale/Clearance Prices. With Dollar Cost Averaging, the artificially low prices can be to your advantage, by purchasing more at the bottom.
If you are not set to retire, you shouldn't be moving your money around at all, during this time. Waiting to re-balance your portfolio when the Stock Market is more stable makes more sense. I advise that you keep buying, if you believed in your funds, prior to the Credit Crisis/Recession. And purchase new securities, that you were eying previously. In the big scheme of things, your portfolio dipping to a 30% loss for about 2ys, will seem small if you invest over 30yrs and DCA (Dollar Cost Avg).
This message has been edited. Last edited by: smirfy,
Quite a bit! However no sense in moving now nor would I want to. I've still got at least 20-25 years before I'm going to use this money.
And I picked an L Fund because I'm too busy during the day to track the market (and the TSP wasn't made for that) so my investments gradually become more secure with gradual shifting each quarter of the balance in the C, S, & I into the G Fund.
That way I won't be fortunate enough to get interviewed by the Wall Street Journal or USA Today when I'm in my late 60's about my major market losses (there will be more "not since the depression" market plunges left in my investment lifetime) because I rode out my investments in stocks so close to needing to draw on them...
I haven't lost a penny and 100% of my funds are in the I fund. How is that you ask? Becuase I haven't taken a penny out of TSP in the last 4+ years and I am several decades away from any retirement draws on the account. I am also a couple of years from even considering another loan against the account.
So, that ~40-50% drop in the account worth in the last 12 months doesn't really mean a thing, except of course, I get to buy more I shares really cheap now!
Understanding long term investment, the way I see it, I am buying cheap now and I can only hope that in the next 4-5 years things get better and I can move most to the more secure funds as I get closer to my 2nd and final retirement. But to the original question, I have lost about 16% this year. I also understand that the more I have, the more I stand to loose. Nevertheless, even if I had to cash it all right now, I would be more than set w/ my 6 figure amount!
The total value of my TSP stocks are down about 25%. However I still own the same number of shares. With 30 yrs till I start tapping it, I am not worried.
I guess it all depends on where you are at in life. If you are approaching the point where you are going to be drawing on the TSP, then I guess moving it into something a little less risky might be the way to go. But if you're not looking to touch your TSP for another 20-30 years, then the economic downturn can really be looked at as a boon. But then again if you're relying on the TSP as your sole source of investment, you may have already missed the boat... I'm not making a recommendation on what you do with your money (although I did stay at a Holiday Inn Express last night), but I'm not worried about it at all. You've got to think long term, and right now, I am almost doubling the amount of shares I was purchasing this time last year.
With the good old value of hindsight, I really wish I would have moved everything out of "I" about a year ago and into "G", then I could switch it back now and more than doubled my shares in "I".
Dang, where is that way back machine when you need it! Good thin retirement is several decades away!
I've lost quite a bit, but still have five times the amount I contributed as a result of being in a plan since '84. I'm not so sure this bad ride is over either as the market could easily keep settling into the 6000 point range. Its only money and as they say as long as you have your health you have everything. Peace, Dick
I don't think I've lost anything. All my funds are in the G funds....never changed it from the beginning. So in other words...I really havent made much either.
Quick question about the TSP, can I contribute outside funds straight from a savings account or do all deposits need to come from my pay check? thank you.
The short answer is that your TSP contributions need to come from your miitary pay.
However...you can also contribute to a pre-tax retirement account, such as a traditional IRA, and then transfer that money from the pre-tax retirement account into the TSP.
For example...while contributing to TSP from your active duty or reserve pay, you can also contribute to a traditional IRA at a financial institution, bank, or local credit union. You can periodically transfer these pre-tax traditional IRA funds into your TSP.
It's a way to continue to grow your TSP account, even after you've separated or retired.
I am active duty and have been contributing to TSP for only 6 years, I been been pretty diversified with my funds and holding my money mostley in the lower risk funds, but still with the risk I took it was painful when I saw my statement.
Good thin retirement is several decades away!
