Exit G Fund

This topic contains 2 replies, has 2 voices, and was last updated by  Tracy 5 years, 6 months ago.

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  • #6465

    Tracy
    Participant

    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?

    #6941

    TS Paul
    Keymaster

    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.com

    #6952

    Tracy
    Participant

    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.

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