My dad took a look at all the TSP funds and wants me to switch 100% to L 2020 funds for a year because he thinks the market will go down. His GF is an accountant and disagrees. However, they both agree to change to lower the I fund from 25% to 10% and put 15% more into C fund. What do you think?
My dad says to switch to L 2020 funds for a year
- Thread starter kevin_01
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nataliachristianforum
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@nataliachristianforum No, thats why I am here to get more opinions
nataliachristianforum
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@nataliachristianforum No, but I value other opinions and ideas. It's a healthy mindset. I already have a decision but I like to gather additional information.
nateswoodworks
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@nateswoodworks Most likely stay where I'm at but take money out of I fund
nateswoodworks
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@nateswoodworks About 25% each in 2040, C fund, I fund and S fund. Not exactly but you get what I'm saying. A financial advisor told me to do it.
shivani0010
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@shivani0010 damn.
lsatschristianprayer
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resjudicata
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@shivani0010 He is not an idiot. Just overly cautious
We are due a recession. It comes around about every 10 years. The last one was bigger than normal. So this recovery is also looking bigger than normal.
But there is no doubt a recession will be here soon. Now what is your definition of soon?
https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States
We are due a recession. It comes around about every 10 years. The last one was bigger than normal. So this recovery is also looking bigger than normal.
But there is no doubt a recession will be here soon. Now what is your definition of soon?
https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States
shivani0010
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@resjudicata Idiot is a harsh word...but anyone who thinks they can time the market (and not even being an expert to boot), is unfortunately an idiot.
resjudicata
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@shivani0010 You can’t time a market change
But you can be more cautious the closer you get to retirement
But you can be more cautious the closer you get to retirement
shivani0010
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@resjudicata This is true...but we don't know OPs age. My guess is he is in his 20s and far from retirement.
Side note, I used to fly on U28s
Side note, I used to fly on U28s
lsatschristianprayer
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@shivani0010 I’ll have to agree... lol
resjudicata
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@kevin_01 Don't change your investment strategy based on short-term possibilities. Your retirement is a long-term investment, and shouldn't be affected by media hype. I'm guessing you are not anywhere near retirement age if your dad is giving you investment advice. You should check out JL Collins' stock series to get a better idea of how markets work and what you should really be doing with your TSP.
If you invested all your money in an index fund right before the 2008 crash and just left it all in there you would still have doubled your money by now. If you pulled out and waited until it felt safe to get back in you wouldn't have gained nearly as much, depending on how long you waited. We've had lots of "a crash is coming" media scares since then, and will continue to have them. if you get out every time the media talks about a coming crash you will never build your retirement. The market will crash at some point, and it will come back up. Those who try to time the market end up losing money and gaining a ton of stress.
If you invested all your money in an index fund right before the 2008 crash and just left it all in there you would still have doubled your money by now. If you pulled out and waited until it felt safe to get back in you wouldn't have gained nearly as much, depending on how long you waited. We've had lots of "a crash is coming" media scares since then, and will continue to have them. if you get out every time the media talks about a coming crash you will never build your retirement. The market will crash at some point, and it will come back up. Those who try to time the market end up losing money and gaining a ton of stress.