Lucia - Introduction

General TSP Discussion.

Moderator: Aitrus

Lucia
Posts: 36
Joined: Wed Dec 30, 2015 1:46 pm

Lucia - Introduction

Post by Lucia »

Fellow servicemembers/FERS civilians/all others,

Please allow me to introduce myself. I am a SSgt in the USAF with 8 years TIS. Last year, I reenlisted for 5 more years in the CENTCOM AOR.

I currently invest in the TSP that I started in 2009, a Roth IRA with Vanguard that I started in 2010, and an individual brokerage account, which I have used on and off since 2003. My allocation in Vanguard was 99% VGENX, a fund invested in 100% energy equities/1% cash in a MMA until 2014, when I reallocated to 100% VFIFX, the Retirement Fund for 2050. I have experienced limited success and many failures/lessons learned as an investor, and strive to improve my understanding through, among several avenues, this informative site and members like you.

My retirement investment strategy consists of several components.

1) $5500 allocated annually to Roth IRA contribution DCA on weekly basis 100% VFIFX. (passive)
2) $18000 allocated annually to Roth TSP. (hybrid passive-active, I will mostly follow the seasonal strategy or FantasyTSP annual leaders with small deviations and risks based off technical indicators and likelihood of positive or negative sentiment that will affect Mr. Market)
3) As much as possible into individual brokerage account. I sold nearly all my holdings last year as I was not sleeping well at night with the amount of risk I was taking. That was when I learned that the only thing worth investing more than a retirement is personal health; the value of a good night's sleep cannot be understated. From 2003-2015 I have held positions in T, XOM, ATVI, BPI, ARYC, KO, IAE, TZA, TNA, TVIX.
4) Real estate. I currently rent out a house in NE.

My Roth IRA is on autopilot until 2050 so the only goal I have for it is to maximize the contribution and not deviate from DCA/buy and hold.

My goal in TSP is to gain at least 1% per month and 12% per year. I failed last year.

My long term goal with the IBA is to invest in at least one solid growth stock that becomes the next AAPL, NFLX, GOOGL etc. I have had no success so far.

My rental property is taken care of by a property manager so the goal is to use the rental income to pay off the mortgage earlier.

I look forward to benefitting from your collective wisdom/guidance in our journey towards a well funded, fat and happy retirement. Good trading!

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Aitrus
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Re: Lucia - Introduction

Post by Aitrus »

Firstly, congrats on getting started so early! You are definitely making the right choice in being devoted to funding your accounts like you do. The rental property is a huge plus in the long run.

It sounds like you have some good goals in mind and a game plan to improve your understanding and strategies.

I don't have much to offer in the way of active account management, my focus is more along the lines of seasonal strategies. But I know that there's a lot of people here that know technical much more completely than I do. You'll find a wealth of information scattered about.

Good luck!
Seasonal Musings 2022: viewtopic.php?f=14&t=19005
Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus

gmation2k
Posts: 17
Joined: Tue Feb 09, 2016 2:57 pm

Re: Lucia - Introduction

Post by gmation2k »

Just my two cents. I noticed that you have both a Roth IRA and Roth TSP. I've been going with a Roth IRA ($5500 cap) and the traditional TSP. Reason being is the traditional TSP allows you to lower your annual taxable income. Might be something for you to consider especially as you make rank in your career and move into a higher tax bracket.
Good luck!

Juice
Posts: 2
Joined: Thu Dec 13, 2012 12:28 pm

Re: Lucia - Introduction

Post by Juice »

Am I right by reading into "CENTCOM AOR" that you are making tax free income (at least I was when I was over there)? I'm not a financial guru, but if so, I think you are making the right move by investing heavily into Roth. My understanding is you will never have to pay taxes on that money (tax free income, tax free earnings, and tax free when withdrawn). Someone please correct me if I'm wrong...
Best of luck!
BTW, I am following the seasonal plan but sometimes will throw my money into the C or S fund the day that I see them tanking (before 12pm EST) hoping they will rebound the following day(s). Sometimes (not always) that nets me a very quick 1-2%...

Lucia
Posts: 36
Joined: Wed Dec 30, 2015 1:46 pm

Re: Lucia - Introduction

Post by Lucia »

Juice wrote:Am I right by reading into "CENTCOM AOR" that you are making tax free income (at least I was when I was over there)? I'm not a financial guru, but if so, I think you are making the right move by investing heavily into Roth. My understanding is you will never have to pay taxes on that money (tax free income, tax free earnings, and tax free when withdrawn). Someone please correct me if I'm wrong...
Best of luck!
BTW, I am following the seasonal plan but sometimes will throw my money into the C or S fund the day that I see them tanking (before 12pm EST) hoping they will rebound the following day(s). Sometimes (not always) that nets me a very quick 1-2%...


It was indeed tax free income. Your understanding sounds correct to me based off what I've read online and heard from my colleagues :) Most of my AGI will be taxed in the bottom tax bracket. For this reason I have elected to prioritize Roth contributions.

Thank you for sharing your strategy; it sounds similar to what I am experimenting with this year. To me that is a low risk strategy that has a decent chance to net a small gain for the month. My TSP strategy focuses on picking up cumulative small gains or minimal losses during turbulent months and increased exposure in months that are historically profitable. December will almost always be 100% S for me.

gmation2k
Posts: 17
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Re: Lucia - Introduction

Post by gmation2k »

That's a great position to be in! I would go all in Roth if I had tax exclusion too.

crondanet5
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Joined: Tue Aug 19, 2008 8:51 pm

Re: Lucia - Introduction

Post by crondanet5 »

Your first and primary retirement source will be your military retirement. You need to work on getting the most you can from that source. That means getting a promotion to TSgt. It's been a long time since I've seen a WAPS test so not sure how they operate. If things have not changed that much you need to be studying every night and every chance you get to get promoted the first cycle you can. And repeat to MSgt. Study that whole WAPS promotion sheet to understand where you can gain points and take action to put those points on your own sheet. I saw a lot of qualified people not get elected because they did not want to leave their current base. Come retirement they weren't making as much retirement pay as they could have. The name of the game is promotions and filling squares. The best thing about this process is you become a better you by achieving these things. Start studying.

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Aitrus
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Re: Lucia - Introduction

Post by Aitrus »

crondanet5 wrote:The best thing about this process is you become a better you by achieving these things.


Debatable, but that's a discussion for another thread, I'm thinking.
Seasonal Musings 2022: viewtopic.php?f=14&t=19005
Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus

Lucia
Posts: 36
Joined: Wed Dec 30, 2015 1:46 pm

Re: Lucia - Introduction

Post by Lucia »

Aitrus wrote:
crondanet5 wrote:The best thing about this process is you become a better you by achieving these things.


Debatable, but that's a discussion for another thread, I'm thinking.


I would love to lurk in said discussion.

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Aitrus
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Re: Lucia - Introduction

Post by Aitrus »

Lol! I've had many of them over the years, both in person and in forums. In the end it all boils down to the same thing: integrity.
Seasonal Musings 2022: viewtopic.php?f=14&t=19005
Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus

Lucia
Posts: 36
Joined: Wed Dec 30, 2015 1:46 pm

Re: Lucia - Introduction

Post by Lucia »

It won't let me give reputation so soon but I wanted to thank you (Aitrus) for the welcome and Crondanet for the advice.

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Aitrus
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Re: Lucia - Introduction

Post by Aitrus »

No sweat! Welcome aboard!
Seasonal Musings 2022: viewtopic.php?f=14&t=19005
Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus

crondanet5
Posts: 4330
Joined: Tue Aug 19, 2008 8:51 pm

Re: Lucia - Introduction

Post by crondanet5 »

Aitrus perhaps you miss the point that this process combines academic classes, supervisory and management schools, and mastering and acquiring extensive knowledge of your AFSC and USAF history. Those, plus the leadership/management experiences every Air Force supervisor encounters will make you a better person.

Did Tomanyiron PM you?

crondanet5
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Joined: Tue Aug 19, 2008 8:51 pm

Re: Lucia - Introduction

Post by crondanet5 »

Lucia where do you expect to be assigned after this tour?

Lucia
Posts: 36
Joined: Wed Dec 30, 2015 1:46 pm

Re: Lucia - Introduction

Post by Lucia »

crondanet5 wrote:Lucia where do you expect to be assigned after this tour?


NE probably

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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%
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L2050 $32.73 0.71% 6.94%
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