Welcome Guest! To enable all features please Login or Register.

Notification

Icon
Error

Retirement Planning


Whether you are close to federal employee retirement or just starting out in your career, this is the place to share ideas with your federal colleagues on creating a secure financial foundation.


To read today's top news stories on federal employee related news visit FederalDaily.com.

Options
Go to last post Go to first unread
LSA  
#1 Posted : Saturday, April 07, 2012 8:25:38 PM(UTC)
LSA

Rank: Senior Member

Groups: Registered
Joined: 8/29/2004(UTC)
Posts: 997





The TSP is the major contributor to income in retirement for the average FERS employee and as such they need to be careful with their strategy regarding TSP contributions, TSP investments and the TSP withdrawal rate in particular.

Did your TSP account take a nose dive in 2008?

Did your TSP account make it back from the crash?

What was your strategy for your TSP account before and after the crash?

Any lessons learned for sharing and for future such TSP account events pre-retirement?

What will you do if you are retired, and can't make additional contributions to the TSP, and such a crash within your TSP account occurs again?

Will you remove your account balance from the TSP upon retirement and where will you put it?







LSA2012-04-08 04:54:32
Fed1969  
#2 Posted : Saturday, April 07, 2012 9:07:08 PM(UTC)
Fed1969

Rank: Senior Member

Groups: Registered
Joined: 10/28/2010(UTC)
Posts: 3,333

I had most of my money in C, I, and S and lost money during the crash.  I continued to buy more after the cra***** the lower price. When prices rose again, I made a lot of money.  

Some others switched their funds to G and sold low.  They only bought G fund. Then when prices went up, they bought high.

I retired last year and kept my funds in TSP.  I am still considering transferring some to a Vanguard IRA which provide more flexibility.
Not retiring yet  
#3 Posted : Saturday, April 07, 2012 9:15:35 PM(UTC)
Not retiring yet

Rank: Senior Member

Groups: Registered
Joined: 6/23/2010(UTC)
Posts: 379

Keep in my mind   you only get to transfer $$   from TSP    ONE TIME.  So, decide carefully.  I have done that once already, but, actually TSP  is doing better than the IRA     Also, consider, you say the IRA is more flexible,   you can change the funds for the TSP  every year.  You can also, leave $$ in and still take an amount of $$ every month.  read TSP.ORG  OR .COM  WHICHEVER it is.  But, also consider carefully.   From somewhere else on this site, it has been posted that Charles Schwab   has an IRA  with literally small fees, which I plan on learning about soon.   I mean they take care of your money, for almost free.
nextpage  
#4 Posted : Saturday, April 07, 2012 11:10:36 PM(UTC)
nextpage

Rank: Rookie

Groups: Registered
Joined: 8/18/2011(UTC)
Posts: 27

The maintenance fee in TSP accts. is around 23 cents per $1000 invested thats low, VanGuard also has low fees.When it comes to retirement investment strategies one shoe does not fit all.The best thing to do is read and be informed.One site I read daily is TSP TALK(Dave Crowly). Personally I'm going to leave my money in the TSP and allocate between the funds as conditions warrant. Have a Good Easter Everyone!
tigerseye  
#5 Posted : Saturday, April 07, 2012 11:40:30 PM(UTC)
tigerseye

Rank: Senior Member

Groups: Registered
Joined: 3/1/2009(UTC)
Posts: 329


For what it's worth, I use a market timing strategy as I traded small amounts in the stock market for decades, so know a little about the markets to protect myself. Like nextpage, I also follow tsptalk.com. Market timing is antithetical to the buy and hold and diversify viewpoint which the TSP managers would prefer you to have. Nevertheless, I bailed out of all but the G and F funds a few days before the markets got clobbered, preserving my equity position. My TSP funds have steadily increased since that time, while many of my colleagues are only now recovering to the point where they were 4 years ago. Although I am a CSRS retiree and did not receive government matching, my modest holdings should last a good long time, barring an emergency.
Following advice from several government retirement seminars I attended, I kept all my TSP funds intact and do not plan on moving them outside those funds. It is a sound investment vehicle. I do not intend on taking a TSP annuity at the abysmal interest rates I would get today.  I have never met an outside money management advisor who wasn't looking to take advantage or a good percentage of my hard earned investments.
Kathi52  
#6 Posted : Saturday, April 07, 2012 11:48:50 PM(UTC)
Kathi52

Rank: Senior Member

Groups: Registered
Joined: 1/4/2009(UTC)
Posts: 773

"I have never met an outside money management advisor who wasn't looking to take advantage or a good percentage of my hard earned investments."

That's right! LSA, how did you diversify your TSP?   
Fed1969  
#7 Posted : Sunday, April 08, 2012 1:33:57 AM(UTC)
Fed1969

Rank: Senior Member

Groups: Registered
Joined: 10/28/2010(UTC)
Posts: 3,333


nextpage wrote:
The maintenance fee in TSP accts. is around 23 cents per $1000 invested thats low, VanGuard also has low fees.When it comes to retirement investment strategies one shoe does not fit all.The best thing to do is read and be informed.One site I read daily is TSP TALK(Dave Crowly). Personally I'm going to leave my money in the TSP and allocate between the funds as conditions warrant. Have a Good Easter Everyone!

Thanks for your thought.  Until I think it makes sense to transfer my funds from TSP, I plan to leave them there.  
SJCX  
#8 Posted : Sunday, April 08, 2012 8:51:56 AM(UTC)
SJCX

Rank: Senior Member

Groups: Registered
Joined: 5/22/2009(UTC)
Posts: 670

Was thanked: 1 time(s) in 1 post(s)
I bought and held through the crash in the S/C funds. I switched to 100% S coming out of the crash and more than made up for the losses from 2008. It looked bad in 2008 but more than recovered.

I think the key is as you get closer to retirement move more and more into the G fund and bonds to avoid losing large chunks when you need it most.


Rss Feed  Atom Feed
Users browsing this topic
Guest
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.


This page was generated in 0.973 seconds.