Investing in the C and S Funds...ratio?
Moderator: Aitrus
Investing in the C and S Funds...ratio?
I've been in these two funds for a couple of months. I've been invested 4:1, C:S based on advice at the Boglehead's forum. Any thoughts on this ratio?
Re: Investing in the C and S Funds...ratio?
You should set up a fantasy account. There is one for iammarket that someone set up last year with 50% C /50% S http://tspcenter.com/summary.php?u=18717 Based on YTD returns, C has higher return with S lagging, but that can change at any time. Seems like I fund has been doing exceptionally well this year in comparison to either C or S. If you have a ways to go before retirement, any combination of the stock funds is generally the way to go.
C is usually less volatile than S...some people here tend to have preference for the S fund but I typically favor C Fund. TSPAllocation.com recommends the C Fund now based on the business cycle. I think all of the monthly Seasonal mixes are in F for June. Mjedlin66's daily seasonal method is interesting but I can't bring myself to do the 100% IFTs as the seasonal methods do so I don't rely on any single mix.
C is usually less volatile than S...some people here tend to have preference for the S fund but I typically favor C Fund. TSPAllocation.com recommends the C Fund now based on the business cycle. I think all of the monthly Seasonal mixes are in F for June. Mjedlin66's daily seasonal method is interesting but I can't bring myself to do the 100% IFTs as the seasonal methods do so I don't rely on any single mix.
Re: Investing in the C and S Funds...ratio?
4:1, C:S replicates the total dom stock mkt. I have 6 years to retirement, and am not sure why I should start a Fantasy account now.
Fed Trader and Sarah at TSP Strategy are both 100% S fund.
Fed Trader and Sarah at TSP Strategy are both 100% S fund.
Re: Investing in the C and S Funds...ratio?
In the same vein as 'iammarket', there is a fantasy account called 'TSM' that is set at 76% C and 24% S; as you say, representing an approximation of the total US stock market. I think it's up about 9% YTD.
Re: Investing in the C and S Funds...ratio?
DSS, I don't understand the weighting being lopsided for TSM. If C is S&P 500 and S is Total Market excluding S&P 500, it seems like 50/50 would be total market. Is it because of the market value of the S&P is much greater than the rest of the market?
Re: Investing in the C and S Funds...ratio?
Roguejim,
Nobody but you can answer that question. You know that the 4:1 ratio is used to replicate the U.S. market, so your only question is – “is that what I want to accomplish?”. Somebody that uses the 4:1 doesn’t try to guess which fund will outperform the others or care what other people are investing in. Sounds like you took the Bogleheads advice but missed their point.
Nobody but you can answer that question. You know that the 4:1 ratio is used to replicate the U.S. market, so your only question is – “is that what I want to accomplish?”. Somebody that uses the 4:1 doesn’t try to guess which fund will outperform the others or care what other people are investing in. Sounds like you took the Bogleheads advice but missed their point.
Re: Investing in the C and S Funds...ratio?
evilanne wrote:You should set up a fantasy account. There is one for iammarket that someone set up last year with 50% C /50% S http://tspcenter.com/summary.php?u=18717 Based on YTD returns, C has higher return with S lagging, but that can change at any time. Seems like I fund has been doing exceptionally well this year in comparison to either C or S. If you have a ways to go before retirement, any combination of the stock funds is generally the way to go.
C is usually less volatile than S...some people here tend to have preference for the S fund but I typically favor C Fund. TSPAllocation.com recommends the C Fund now based on the business cycle. I think all of the monthly Seasonal mixes are in F for June. Mjedlin66's daily seasonal method is interesting but I can't bring myself to do the 100% IFTs as the seasonal methods do so I don't rely on any single mix.
Agree.
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Re: Investing in the C and S Funds...ratio?
I think I would pick C out of the 2.
Re: Investing in the C and S Funds...ratio?
ChopStix wrote:
Agree.
Completely random and off subject question, but how many Tspcenter accounts can one person have?
Re: Investing in the C and S Funds...ratio?
Even though the C and S may be moving up, I like the seasonal as a less emotional based approach.
Re: Investing in the C and S Funds...ratio?
Vesper wrote:Even though the C and S may be moving up, I like the seasonal as a less emotional based approach.
How is the seasonal a less emotional approach in your opinion?
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Re: Investing in the C and S Funds...ratio?
brad744 wrote:Vesper wrote:Even though the C and S may be moving up, I like the seasonal as a less emotional based approach.
How is the seasonal a less emotional approach in your opinion?
You don't think about it...ie no emotion. You just move on the dates per the seasonal strategy.
I am just an average Joe. I have no clue to what the market will do.
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation ofTimboSlice wrote: "People really need to stop overthinking this."
Re: Investing in the C and S Funds...ratio?
evilanne wrote: Mjedlin66's daily seasonal method is interesting but I can't bring myself to do the 100% IFTs as the seasonal methods do so I don't rely on any single mix.
Evilanne,
Have you thought about parking about 75% in G and using just 25% of your balance to play in the "Daily Seasonal"? Being retired, I am also reluctant to risk 100% in any strategy.
Re: Investing in the C and S Funds...ratio?
Vesper wrote:Even though the C and S may be moving up, I like the seasonal as a less emotional based approach.
Less emotional than what? Certainly not less than buy and hold. I don't get this emotion stuff.
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Re: Investing in the C and S Funds...ratio?
Roguejim wrote:Vesper wrote:Even though the C and S may be moving up, I like the seasonal as a less emotional based approach.
Less emotional than what? Certainly not less than buy and hold. I don't get this emotion stuff.
Then you have not actively done any trading if you don't get the "emotion" stuff.
Emotional stuff, if you are actively trading, can cause you to make irrational decisions based on "fear" of losing money.
So you must understand emotion with buy and hold from your above statement. Now, start trading real money so you can experience that in the moment right before you hit the "except trade" emotion when your heart is pounding because you are not sure you are doing the right thing feeling.
Until then, you won't understand what they are talking about.
I am just an average Joe. I have no clue to what the market will do.
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation ofTimboSlice wrote: "People really need to stop overthinking this."
Fund Prices2024-03-28
Fund | Price | Day | YTD |
G | $18.15 | 0.05% | 1.05% |
F | $19.08 | -0.06% | -0.74% |
C | $82.21 | 0.11% | 10.55% |
S | $82.43 | 0.30% | 6.92% |
I | $42.57 | -0.24% | 5.95% |
L2065 | $16.38 | 0.02% | 8.37% |
L2060 | $16.39 | 0.02% | 8.38% |
L2055 | $16.39 | 0.02% | 8.38% |
L2050 | $32.73 | 0.01% | 6.95% |
L2045 | $14.91 | 0.02% | 6.58% |
L2040 | $54.38 | 0.02% | 6.22% |
L2035 | $14.34 | 0.02% | 5.79% |
L2030 | $47.67 | 0.02% | 5.38% |
L2025 | $13.15 | 0.03% | 3.43% |
Linc | $25.61 | 0.03% | 2.82% |