November 12, 2013 at 8:14 am #6465
I just found your site and have been reading all the articles. Wonderful Information.
My question: I have about 25% of my TSP sitting in the G Fund and would like to follow your allocation of getting that to the S Fund. When is the best time to do that? Should I just make the move now or do it in increments?November 14, 2013 at 9:15 pm #6941
If there is one thing I have learned from reading other financial blogs over the years, it is that I am absolutely forbidden from giving individual portfolio advice to anyone.
When I am making investment decisions in my own accounts, if I am reasonably convinced that the fund or stock which I am buying is trending up I will not “average in” by buying at different times. Instead I put whatever funds I am investing to work right away. For example, after the shutdown and debt limit nonsense ended I did not see any real hurdles for the market ahead in the next few months and I had some money which I wanted to put to work. I invested all of that money at once (in a Vanguard small cap ETF (VTWO) which mirrors the S Fund).
In contrast, if I am buying a stock or fund which is beaten up and possibly still falling, I will use the dollar-cost average strategy and invest fixed amounts over time. That results in buying more shares when the price is lower and less when it is more expensive, and results in a lower total average cost per share. So at the tail end of a recession, for example, I might move a fixed percentage from the F Fund to the S Fund each week or month to hedge against the market moving lower.
The TSP Allocation Guide www.TSPallocation.comNovember 14, 2013 at 10:32 pm #6952
I understand about not wanting to give individual account advice. I appreciate your sharing what you do with your own acccounts and it gave me some good ideas.
Thanks again for all the good info you post! It is much appreciated.
You must be logged in to reply to this topic.