My dad says to switch to L 2020 funds for a year

[nairna]

@kevin_01 It's all about that S and C fund. Lifecycle funds distribute amongst the funds automatically, taking a more protective approach as the target date gets closer.

The best advice I can give is to max out your contributions each year because compound interest. Don't be disheartened by losses, it happens. And TSP is the long haul, so don't log in every day and move money around. If you have BRS, make sure you contribute enough to take advantage of the % match.

 

[resjudicata]

@kevin_01 Does your dad know more than people that have PhDs from Ivy league schools in finance, inside information, access to the best technology, and the ability to move markets based on the size of the funds they manage?

 

[lindal113]

@kevin_01 Don’t look at the TSP as a dollar amount. Look at it as shares. When the market crashes, you will lose money, but those funds become less valuable, so you can buy more shares with the same amount of money. When the market recovers, those share prices will rise again. Unless you’re set to retire in the next five years, ride it out

 

[lostinflux]

@kevin_01 I would not change to the 2020 fund but I would add the 15% from the I fund to the S fund.

 

[doone]

@kevin_01 The market crashes 30% in a month while doubling in two years.

Doesn't matter what the market does until you cash out.

 

[resjudicata]

@kevin_01 The question to ask is when do you want to start using that money for retirement? Within 2 years? 10 years? 20 years?

If its within 2 years I would put my money in G. Unless you have a good back up plan to lose 50 percent like the people did during the last recession.

 

[resjudicata]

@kevin_01 https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States

 

[resjudicata]

@kevin_01 www.cnbc.com/2019/09/02/heres-a-list-of-recession-signals-that-are-flashing-red.html

 

[matthewwri]

@kevin_01 I'm gonna say the unpopular thing, and as I understand it all the experts (and everyone here) disagree with me. However, I tend to think that all the advice about not trying to time the market has to do with much shorter outlooks as in months or years. In this case a possible recession would likely be a once-in-a-decade event. Think of it this way, what's the harm in backing out for a year or two? You will lose growth and compound interest if things keep on but no one, absolutely no one thinks the markets will keep climbing like they have in the past few years. I'm not a financial expert but I have listened to a lot of planet money podcast including about the yield curve which hasn't been wrong in 50 years. It says bad days are ahead. China slowdown, Brexit, unsustainable tax rates, global insecurity, trade wars, any one of these things could put a big dent in the market, and they are all converging. And the pessimist side of me says that of course all the brokers and financial institutions tell you not to run for the hills, that hurts their bottom line, especially if you sell before they do.

Bottom line: for most people it probably does make sense to ride it out, and in most cases everyone probably should but in this particular one I'm out for now. And I know a handful of very successful people who have done the same.

 

[dmendoza]

@kevin_01 Id say this is the real tool you need.

https://tspcalc.com/seasonal.php?ID=66863&years=04-19

 

[zeekstar]

@kevin_01 I'm at 13 percent right now. You get two trades a month. Keep it in the g fund until you see the market crash. Watch the s&p. Then if the market is down one to two percent. Place all 100 percent in the 2050 fund before 9 am pacific time that day. Then watch the market. On the day you feel is right and an up day and of course your up approx half to 1 percent total take your money back to the g fund before 9 am. Say what you will it's the best ever. Do this in in out as soon as you can in the beginning of the month to avoid getting locked in or out. There will be months the market is flat and you will just keep getting two percent from g fund. In the last 6 years I have averaged 8 to 15 percent.

Ask your mom about this.

 

[job8]

@zeekstar OP, don’t listen to this guy.

 

[zeekstar]

@job8 I was just trying to tell him what I do. Just saying what I do, trying to give guidance. If you do what your ma and pa do you will not make it very far in this game of finance.

You have nothing to back your opinion other than dont listen to this guy how about some life experiences or facts?

Let's see your tsp 401 portfolio.

 

[job8]

@zeekstar OP, you are so lucky. You found the one guy that can time the market.

EDIT: There is no such thing as a “TSP 401” you market-timing genius.

 

[zeekstar]

@job8 October to February last year I was up 30 gs. Everyone else was down 15 percent.

 

[job8]

@zeekstar Sure you were.

 

[zeekstar]

@job8 It was tsp, 401k I dont know what you have. Maybe if you try this I can text you and you can actually start making money.

 

[job8]

@zeekstar Yes, I take financial advice from online whackjobs that think they know better than Warren Buffet. That sounds like a great idea.

 

[zeekstar]

@job8 Ok. Good luck to you Sir. I wont result to calling fellow vets names. Thanks for your service.

God bless should have joined the Af you would be smarter. That goes for Buffett too.

 

[job8]

@zeekstar Good night, you delusional putz.