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General TSP Discussion.

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cswift01
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Joined: Thu Dec 08, 2016 10:46 am

If you visit this website, check this link out

Post by cswift01 »

Another case for index vs. active (although some of the active funds are somewhat interesting):

https://us.spindices.com/spiva/#/

mindofmush
Posts: 353
Joined: Mon Jul 02, 2012 1:38 pm

Re: If you visit this website, check this link out

Post by mindofmush »

Spiva says indices outperform 85% over the last 15 years

Motley Fool says S&P 500 index outperforms 80% over the last 35 years

Looks like passive investing in a major index fund is the tried & true way to go and yet there is still more money in actively managed mutual funds than in index funds.

These mutual fund managers must be good politicians to sell under-performance to supposedly smart people. :?: :?: :?:
mo meng, mo ching (which loosely means: no money, no life)

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cswift01
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Re: If you visit this website, check this link out

Post by cswift01 »

True, however, I found it interesting that certain areas still find larger proportion of active management to outperform index investing. Consider Italian equities or some bond funds.

mindofmush
Posts: 353
Joined: Mon Jul 02, 2012 1:38 pm

Re: If you visit this website, check this link out

Post by mindofmush »

It's hard enough to understand the US market & tax rules but to take on the Italian market; it's like they speak a different language! :lol:

I'm pulling most or all my money out of the TSP in a few months because I don't intend to do any passive investing for the next 15 years and I don't like the restrictions of the TSP. When and if I ever do return to passive investing, I doubt that I would to use a mutual fund when ETFs are so much more timely.

Bonds only degrade portfolio performance with the appearance safety of smaller losses and if you have to make any withdrawals while your IRA/TSP is down, you're compounding losses that you cannot write off. Better off maintaining a 3-5 year cushion outside your TSP or main passive account so that you have full predictable income without touching your TSP until it recovers from a correction/depression.

Frankly, the only thing I think mutual funds are good for is avoiding a "wash sale" while writing off a loss (in a non-IRA taxable account) at the bottom of a correction. Other people pay for the loss while you buy a "different" mutual fund and reap the gains from the recovery, just as if you sold at the top (high) and bought at the bottom (low).
mo meng, mo ching (which loosely means: no money, no life)

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Fund Prices2024-03-27

FundPriceDayYTD
G $18.14 0.01% 1.00%
F $19.09 0.26% -0.68%
C $82.11 0.87% 10.42%
S $82.19 1.48% 6.61%
I $42.68 0.56% 6.21%
L2065 $16.38 0.84% 8.36%
L2060 $16.38 0.84% 8.36%
L2055 $16.39 0.84% 8.36%
L2050 $32.73 0.71% 6.94%
L2045 $14.91 0.67% 6.56%
L2040 $54.37 0.63% 6.20%
L2035 $14.34 0.58% 5.77%
L2030 $47.66 0.53% 5.35%
L2025 $13.14 0.31% 3.40%
Linc $25.60 0.24% 2.79%

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