need some advice on where to move my money

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matt23h
Posts: 3
Joined: Mon Sep 10, 2018 10:09 pm

need some advice on where to move my money

Post by matt23h »

well I am new to the whole stock and tsp thing still trying to learn and reading as much as I can. I have been in the feds for almost 4 years and thought I was doing right by just getting in L2050 and leaving it be. I just talked to a buddy that was doing the same thing, but he talked to a guy he works with that has over 900,000$ in his tsp, that told him to get out of all the L funds. So what would be my best move on where to move my money to ? or should I just wait and see if they drop and move then?
Last edited by matt23h on Wed Sep 12, 2018 11:00 pm, edited 1 time in total.

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mjedlin66
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Posts: 1569
Joined: Wed Oct 02, 2013 7:51 pm

Re: need so advice on where to move my money

Post by mjedlin66 »

The biggest problem with the L funds is that even if you are 30+ years from retirement, they still park some of your money in stocks and bonds. It is illogical. When you are that far from retirement, you should be increasing risk in order to increase log-term gains.

So look at the current L fund makeup for the L fund that you are in. You can find it on TSP.gov. Compare those splits with what you are comfortable with, and then submit an IFT.

If you have a long way to go, then I recommend 70% S and 30% C. Put nothing in G, F, or I. Come back in 20 years and lose your mind.

But also, contribute as much as you can. The annual contribution limit for you is 18,500. That does not include your employer's contributions, only yours.

Often people say "I am contributing all I can afford right now." In some personal cases that is true. But most often, it is not true. Contribute an additional 1% and wait a month. My bet is you won't even notice it. Then raise it another 1%. Notice it yet? Maybe, maybe not. Keep going for as long as you don't notice it.

My wife and I invest about 50k per year combined. Neither of us make 6 figures. And we live just fine and still travel a lot.
Owner/creator of TSPcalc.com - "Know your numbers"

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ArrieS
Posts: 1072
Joined: Sun Aug 05, 2012 10:56 am

Re: need so advice on where to move my money

Post by ArrieS »

matt23h wrote: So what would be my best move on where to move my money to ? or should I just wait and see if they drop and move then?
No.

Do you honestly know what you will do if the market drops? Will you really want to move your money after the market drops or will you tell yourself it may drop more and sit paralyzed?

Don't plan on doing something when the event will be triggered by emotional one.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar

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kavic
Posts: 58
Joined: Mon Dec 12, 2016 9:22 am

Re: need so advice on where to move my money

Post by kavic »

If you are looking at 26 more years I would consider mjedlin's advice above as excellent. Put it there and forget it for 20 years. Max it out ASAP! Get a raise, increase your contribution until you are maxing it. Pay your retirement first! I did everything but forget about it. Made some bad moves and sat in G a couple years after those huge market drops. Had I just left in C & S, my account would be way above 2 million.
Current Allocation: 50% G, 50% F
Strategy: various
Contributions: 50% C, 50% S

matt23h
Posts: 3
Joined: Mon Sep 10, 2018 10:09 pm

Re: need so advice on where to move my money

Post by matt23h »

ok thanks guys I think I will go with mjedlins advice, I was thinking about trying the Seasonal investing moves, I was reading about that Aitrus had mention in a post I believe he called it the Jahbulon’s Basic Mix. But I do like the idea of 70/30. I have been raising it 1% at a time to get it higher and will keep moving it up till I max out.

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Fund Prices2024-03-28

FundPriceDayYTD
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%

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