I have 90% of my balance in the C fund and it is dwindling down to nothing. I have read from other people to leave alone but I hate the thought of my retirement going down the tube. Should I transfer my remaining balance into the G fund and transfer it back once the market recovers? I need some advice, I don't know much on how the market works but I guess its time to become educated. Thanks.

The "G" fund is up about 3.5% over the last twelve months. The "C" fund is down about 43%. That sums it up pretty succinctly.

I shifted over to "G" about a year ago. While the return isn't great...it's positive.

While I understand the "buy and hold" mentality, let me explain it this way...

Two guys are in TSP with balances of $100,000. One guy's balance falls to $50,000 and he rides it out. The other sees stormy times and shifts into the "G" fund. When the market recovers, one guy has $50,000 to enjoy the growth in the market. The other guy still has $100,00 to grow. I'd rather have the $100,000.

"Buy low, sell high. Everything else is commentary."

I wish the TSP was a Roth, but that's OK. Unlike a stock purchase from a single company, these funds will rebound eventually. If you continue to invest each month in your TSP fund(s), consider how inexpensive purchasing a share is today, and look forward to savor it's eventual increase in value.

What should I do with my balance in my C fund, should I transfer my full amount over to the G fund? Or should I leave it?

06deluxe,

First off...you can take my opinion with a grain of salt. I'm just some guy who has a graduate degree from the school of "Been There, Done That", lost some money, and figured out how to not lose it again.

Too many people are comparing TSP to a mutual fund, where you're likely to ride out the lows and reap the highs. If you move money around, you're hit with a taxable event, or commissions.

The TSP isn't like that. It comes with a "safe harbor" in the "G" fund. If you don't like what's happening in the other funds, you can IMMEDIATELY shift over to the "G" fund and avoid stormy seas. You do this without any taxable event, and without commissions.

The "C" fund, as well as the "S" and "I" are down roughly 43% to 50% over the past twelve months. Why the heck would anyone see the value of their retirement money drop 50% and not do anything about it?! A few key strokes would shift your hard-earned money over to the "G" fund until you were ready to move it around again, with a few more key strokes.

I learned a lot about TSP from the Chief of Civilian Personnel at my last command. She was discussing how many civilians lost tens of thousands of dollars when the TSP funds retracted from 2000 thru 2002. She explained that many people lost money because they failed to shift over to the "G" fund, which continued plodding along at 5% - 6.4% When the "C", "S", and "I" funds rebounded in 2003 with returns of 28.5%, 42.9%, and 37.9% many people had to recover their losses first, then start making money with these returns. The savvy ones still had all their money in the "G" fund, moved it around, and realized tremendous growth, without having to recoup anything.

Speak with a financial planner, Work-Life financial counselor, seek out courses at your local continuing education, get input from friends, etc. etc.

People are bleeding huge amounts of retirement savings. The "G" fund is a bandage that stops the bleeding, and maintains the health of your retirement plan.

PS - There are some on these boards who have ripped me a new one for promoting TSP. They seem to be kinda quiet recently. As I truly believe, TSP provides you the option to enjoy good returns in good times, while still being able to protect your savings in hard times. Plenty of people like to brag about their stock picks when things are up. It's also pretty damned important to preserve your money when things are down.

Brian, I've actually liked your info over the years

I switched from the other accounts in Oct to all G, so I lost a lot from the previous high, but less than if I had kept it in the other funds ove the last 4 months.

I'm starting to think that it may be time to get back in and shift some out of G now. Wondering if this is going to be the bottom.

What do you think?

Brian, I concur with and value your input on this topic. Since the market is in the crapper I have readjusted my percentages across the board within TSP. However, what shares that I do have within "C, S and I" funds, I don't want to touch due to losing too much money. I will ride it out. Since the inception of the Stock market, it has shown steady growth with a few dips in the market (one being now). It will take time, but I've got time (I hope ) I don't hit mandatory retirement age for another 16 or so years - should be enough time for things to turn around. Just my .02 cents.

Only you and a professional financial planner can answer your own question. But these are things I considered myself. First, when was I planning to use my TSP? Is there sufficient time before I need my TSP to ride this wave? If I can, what can I do in the meantime? The answer to my own questions was, 8 years from now and yes I can ride the wave. In the meantime, I change my bi-weekly allocation to put 60% of my bi-weekly investment in the G fund and 10% on each of the other funds. As I see it, I am hedging myself while riding this wave and buying a small amount of the same funds at a low price. Is there risk? Of course, there will always be risk on any type of investment. But remember, if you switch your current balance from the C to the G, you will then be making the lost real and that lost is gone for EVER, w/ no chance of recuperating any of it over time. If you are ok with this, and you just want to cut your loses, then make the switch and understand that there is NO turning back to recoup the loss.

Dollar Cost Averaging,



Right now all of the funds that are doing bad, are not bad.

They are just on sale, buy them cheap!!!!!!!!!

my two cents -

Nobody on AD has lost a dime in ANY TSP fund. You don't loose until you withdraw. Like others said, only follow the advice of a professional! Myself, I have never put a dime anywhere but the I fund. Since I don't own a wayback machine, I don't care that it dropped. (If I had one, yeah, I would go back and move it over to the G fund when I hit it's peak. Then again, maybe I wouldn't! Maybe I would use the wayback machine to place a few bets in Vegas or buy the right lotery numbers, then the TSP wouldn't be a concern at all!)

No action on this thread since April, so where are we at with TSP today?
July 1st
I= 15.41, S= 13.30, C= 10.82, F= 12.83, G= 12.91
March 02
I= 10.66, S= 9.49, C= 8.44, F= 12.46, G= 12.79
Overall increase (from March to July)in value per share of:
I= 4.75, S= 3.82, C= 3.30, F= .37, G= .12
(Not too shabby)
I just got my second quarter statement for this year and saw an increase in value across the board. We still have a ways to go to where we were a year ago, but it's progress.

Better than many that lost value then sold.

Buy low, sell high; everything else is commentary.

The best place I have found to put part of my money is in ADVANTA Corp.... They are not in every state, but we (my parents & I) have been using them for 40 years or so... I think they are now paying 10% for a 2 year note... hard to beat.

Wray...

Wray,

This article sounds a bit of a warning on Advanta's CDs.

http://www.darwinsfinance.com/...ield-worth-the-risk/

A search shows that the Advanta bank (which I believe is in the same family) has suspended all credit card activity, and shares value has dropped like a rock.

And some more info: http://www.marketwatch.com/sto...igh-yield-notes-give

Just a heads up...

This message has been edited. Last edited by: Brian_Jordan,