Interesting TSP / I Fund proposals

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Aitrus
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Interesting TSP / I Fund proposals

Post by Aitrus »

https://www.fedsmith.com/2017/07/11/changes-coming-tsp/

There's proposals right now in Congress regarding changes to the TSP. One that I was unaware of was a fundamental change to the I Fund. See the link and it's infographic for details.
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mmmmmbeer
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Re: Interesting TSP / I Fund proposals

Post by mmmmmbeer »

Absolutely interesting bro... we'll all be in a bit of dissarray with our seasonals other than Jahbby's. Who know's how this new funs will act/range without a bit of time. Interesting.

May be time to hold off on the I until more info if that change takes effect.
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cashworth
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Re: Interesting TSP / I Fund proposals

Post by cashworth »

Its interesting that Ms. Alden presents the population stagnation as a "problem" in regards to long term market trends. Can someone explain this?

I would think the relationship between population growth and output per capita would be inverse (meaning positive wealth accumulation per person), but maybe the downward trend of the labor force growth has more impact than I give credit.

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mjedlin66
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Re: Interesting TSP / I Fund proposals

Post by mjedlin66 »

cashworth wrote:Its interesting that Ms. Alden presents the population stagnation as a "problem" in regards to long term market trends. Can someone explain this?

I would think the relationship between population growth and output per capita would be inverse (meaning positive wealth accumulation per person), but maybe the downward trend of the labor force growth has more impact than I give credit.


Speaking to Japan specifically, their social security and public health systems are much larger than ours. They have more elderly than they do young, so they have no way to pay for their social benefits.

Also, the shrinking population has stagnated the real estate market. Because the most valuable asset most people will ever own is their house, their wealth can be all but wiped out by a stagnant housing market. Combine that with the cultural difference- due to superstition, Japanese people do not like buying used houses. Generally they buy one house and live in it for the rest of their life. Then it gets knocked over and someone has to pay to build a new one, only to have it stagnate in value forever. Japan's central bank has negative interest rates to try and fix this. My Japanese coworker has a mortgage that pays him.
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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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