Retirement TSP Seasonal Strategies

thesoonerkid

Active Member
Messages
99
Wow congrats, so you were able to bank all the downturn? around 30-50% profit in 1 year?

I am asking because I saw their membership cost and it is a little bit pricey.
They didn’t tell us to get back Into the c or s funds. I was fortunate to get in when they only charged 1,000 for lifetime membership. I feel like that was a very good value considering my lack of investment knowledge. I’ve since learned a little bit more than I knew then. I think really if you’re early in your career you can’t go wrong with 50c/50s or even 75s/25c if you wanna be aggressive
 

erik088

Member
Messages
3
They didn’t tell us to get back Into the c or s funds. I was fortunate to get in when they only charged 1,000 for lifetime membership. I feel like that was a very good value considering my lack of investment knowledge. I’ve since learned a little bit more than I knew then. I think really if you’re early in your career you can’t go wrong with 50c/50s or even 75s/25c if you wanna be aggressive
oh ok. Considering how much it cost right now, I believe 1K is a good deal!. Right now I am around 55C/45S.
 

TimShady

Trusted Contributor
Messages
70
They didn’t tell us to get back Into the c or s funds. I was fortunate to get in when they only charged 1,000 for lifetime membership. I feel like that was a very good value considering my lack of investment knowledge. I’ve since learned a little bit more than I knew then. I think really if you’re early in your career you can’t go wrong with 50c/50s or even 75s/25c if you wanna be aggressive
So what was your 12 month PIP ending 12/31? I’ve always resisted moving my money around and trying to time the market, but I know there’s at least some logic to it.

I let my 50C/50S ride all year and ended up making 24.91%
 

Motodog

Trusted Contributor
I ♥ pointSixtyFive
Messages
267
with how few fund options there are within the TSP, paying for a service to tell you “strategies” seems unnecessary. I’m 33, so nowhere near retirement. Current is 45% C, 45% S, 10% I. One year performance 23%.
Agree. Market timing is not a good strategy in my mind. Take this stat-the returns of an investor who put $10k into a standard S&P 500 index fund (very solid plan) in 1980 and missed only the market’s 5 best days, that’s 5, by trying to time mkt, would be 38% below someone who stayed invested for a 10 year period. Source- Fidelity Investments Inc.
 
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BrocolliRob

Trusted Contributor
Messages
157
Agree. Market timing is not a good strategy in my mind. Take this stat-the returns of an investor who put $10k into a standard S&P 500 index fund (very solid plan) in 1980 and missed only the market’s 5, that’s 5, days, by trying to time mkt, would be 38% below someone who stayed invested for a 10 year period. Source- Fidelity Investments Inc.

the one thing I took away from business school is you can’t time the market. You’ll maybe get lucky a few times but like you said, overall it’ll just hurt you.
 

thesoonerkid

Active Member
Messages
99
So what was your 12 month PIP ending 12/31? I’ve always resisted moving my money around and trying to time the market, but I know there’s at least some logic to it.

I let my 50C/50S ride all year and ended up making 24.91%
Unfortunately Just under 12%. I will say that overall my tsp has grown substantially in the last couple years. I ca t be too greedy. I know some people at work who are - for their pip on the year.
 

Termine

⭐SuperStar
I ♥ pointSixtyFive
Messages
500
Careful with those 12 month PIP numbers... don't they include your yearly contributions when calculating that? So someone maxing it out would have a better "performance" than someone only doing 5%, everything else being equal.
 

Motodog

Trusted Contributor
I ♥ pointSixtyFive
Messages
267
Careful with those 12 month PIP numbers... don't they include your yearly contributions when calculating that? So someone maxing it out would have a better "performance" than someone only doing 5%, everything else being equal.
Good point. Paid money managers/market timers consistently under perform the S&P 500 Index. Year after year. You miss, guess wrong on half a dozen upticks in the market and you never recover.
 

TimShady

Trusted Contributor
Messages
70
PIP doesn’t include contributions, just growth. I started maxing my TSP this year so my account is about 60% higher than it started and my PIP is 24%. They show it as your “Personal Rate of Return” on your statement.
 
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