Discussion in 'On Topic' started by Terror Squad, Aug 11, 2008.
What funds are you putting your money in?
G, rest keep going down no point wasting money. "predict" the end of this downslope, buy up some other fund cheap and watch the money flow in.
Meh, I and S. Fire and forget.
Chances are you have many, many years before you'll be utilizing that dough. My suggestion is to throw it in the lifecycle fund specific to your age group and forget about it.
None, financial manager > TSP.
wait, wat? You shouldn't have all your money in the G fund
Yes buy a bunch of shares in the consistently falling I/S/etc funds and just watch your money rot away. Why would you want to put money in the only fund that goes up when you could put money in a fund that goes down?
It's a temporary thing. There are trends you can see with TSP, and if you start learning those trends, you can move your money between funds (since there's no fee) and make MORE money than you would just letting it sit. That is the reason they put a 3 move cap per month because people were making thousands extra doing this (and since there is no admin fee or commissions, tsp.gov was losing money).
G fund until shit starts to reverse in the economy, then take all the money that you haven't lost, buy up shares of I at $15 instead of the $22 you would now and voila
Because it will go up someday and might as well be now. You still own the same number of shares, your cost basis is just a bit skewed.
exactly, TSP didn't charge you for moving money, and there were lots of people buying/selling shares and treating it like a stock market which increased their return % a lot. If you go back to the historical prices for each fund and graph it you'll see it has up's & down's just like the stock market. If you get buy at the bottom of a down and sell at the top of an up (moving money between each fund & G each time) you could basically always be on an up.
The cap was put on there because with no personal charge for trades it was worth making a $50 profit here and there, which doesn't work with normal funds since you're charged a commission.
I really think you don't know what you're talking about.
I think he thinks he does.
I'm w/ the Oak Leaf Smasher on this one.
I'm going to put all my TSP monies into an IRA .
how is that not making any sense at all?
TSP is just an IRA. You control which fund you want to buy in to. A normal IRA has different fees associated with it so moving around regular IRA funds decreases your overall return on your money since you're paying commission fees and possibly penalties for moving your money. With TSP, those costs are absorbed, either by spreading them over all TSP members or the govt just eating the administrative costs (not sure which, but it really doesn't matter to you the individual). This allows you to make as many inter-fund transfers as you want.
You can think of G fund as your checking account. No one keeps their money in there full time since it has a measly 3-5% return (which is guaranteed). Buying & selling in and out of here isn't going to make much of an impact because the fund only changes in actual value a few pennies a month. Every other fund has up's & down's. You can go on the TSP site and download an excel sheet with the historical prices of each fund for years and years back. Graph that shit. You'll see it looks just like if you graphed any stock on the stock market. Periods of it going up, it peaking, then it falling, and repeating the process.
So... as simple as it gets.. buy low sell high.
Pre-end of last year there were no limits on how many inter-fund transfers you could conduct per month. If you were smart, and you watched the markets (since each fund follows a certain market), you could somewhat easily follow these trends and buy low sell high, moving your money to the G fund inbetween if all of the funds are in a downslide or at a peak when you sell. This is why they put the 3 per month cap on there. It wasn't fair to the people that just let their money sit while those that exploited the no administrative fees or penalties made quite a bit more money.
This thread is the reason why I would always suggest my soldiers/airmen speak to a financial advisor prior to contributing to the TSP.
x11ty billion. I am lucky enough to have one in the family, you want to talk to a certified financial planner especially you guys with wives and kids.
So if you are so good at just looking at the index graphs and figuring out when the top or bottom are forming why don't you just get a Scottrade account, and start daytrading Exchange Trade Funds? If its as easy as you say, the $7 trade commission really isn't that big of a deal.
You kind of keep alluding to the fact that people used to make money on it all the time when there was no limit to the number of TSP transfers you can do, when in reality a $7 trade on is pretty miniscule. Just wondering if it is so easy, why would someone not move money somewhere where you can make instantaneous trades and not rely on a slow moving TSP system?
edit-I reread my post and it sounds more like I'm attacking you than I meant. I really would like to know if there is some benefit to TSP over ETFs?
The bottom line is there really IS NO benefit to the TSP. The only upside of the TSP is that for new members of the military (who are generally 18/19 years old) it doesn't require a minimum amount of money (it can easily require $2000+ to begin investing in many different places and funds) to begin investing and it is fairly fire & forget. It also allows you to build up a tax-free balance when in a combat zone. The only other really "easy" solution like TSP is ShareBuilder which.. sucks.
I agree, talk to a financial specialist. Not a military one because they'll just recommend the TSP.
The main benefit to the TSP is the low cost to invest your money. Like every other investment vehicle, they charge a percentage (administrative expense) to invest your monies. The TSP is the lowest you can possibly get - by far.
and international stocks have additional costs associated with them, which makes the trades even more expensive.
Find a comparative international investment vehicle that costs less than the TSP.
there isn't but that is one of the reason's they had to cut of the day traders.