IFT Question

[robika]

My question is why put new deposits into the G fund? You are always buying G shares at a higher cost. At least deposits into the C & S you are dollar cost averaging into those funds and may be buying at lows especially in this volatile market.

I'm not sure if your G fund logic is correct. G fund always goes up. So no matter when the new deposit is bought you will always sell at a higher cost. Whereas if your new deposit goes into C or S, you may be buying in at a high and later sell low.

You are correct sir! But my goal is not to sell low and lock in losses or time it to buy on lows burning an IFT. Time will always allow you to sell higher which is why here I set with my paper loss... waiting for that day.

I think that's everyone's goal. What I was trying to point out is that contributions are not timed by you, they're timed by the pay cycle, and that will not always line up with a good buy. Sure you could hold off on selling a fund until the price is higher, but are you really going to hold off on selling all of your shares in that fund just to make sure you make a profit on the few you buy during a contribution?

I'm going to use your signature line info and your fantasy account as an example:
So your fantasy account shows that you bought 50/50 S&I on 1/9 which means you paid $49.4070/share of S and $31.6698/share of I.
Your signature line indicates that you are contributing at 50/50 C&S.
Now, assuming you are like me and get paid every other Friday (I don't know your pay situation) 50% of your contributions would have bought S on 1/26 at $51.0561/share.
Yesterday's (3/29) S fund prices closed at $48.5193/share.
Are you going to hold onto all your S fund shares until it clears the $51.0561/share that you bought them at on 1/26 just to make sure you make a profit on those? Because if you are, you have to wait for S to go up another 5.23%. You could miss out on a decent profit if/when S gets to $50/share where the bulk of your S shares would be sold at a profit to buy another fund that may be low at that time.
If your contributions were all going to G, you would always be selling it at a profit to allow you to buy another fund. There would be no need to wait.

Just my 2 cents. It is obviously your money and I cannot dictate what you do with it, I just wanted to explain my point of view and sometimes I like to hear myself think.