NokieVA

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  • in reply to: Reallocation Gone Bad–Possibly #17718
    NokieVA
    Participant

    Chris,

    Invest aggressively now .. however,

    and on a slightly related topic to your question …

    It depends. Truly, the answer for everything.

    If your intent is to leave the TSP account alone, then invest it with long-term goals – for growth.

    If you want to get an annuity soon, be conservative.

    I would personally do the following at retirement (my current plans) – begin taking out monthly payments from TSP and manage the TSP investment as a long-term growth fund (aggressive strategy). You are allowed to change the monthly withdrawal amount once per year. Change this amount yearly based upon your age, the amount of last year’s return, and taxation considerations. The unused monthly payment money can be reinvested as you see fit, which might include gifting to relatives to avoid taxes if your intent is to later give it to them anyway. Another benefit, you are ridding yourself of the tax burden on the TSP withdrawals at a steady, relatively low rate into your existing retirement income framework.

    Cheers,
    Jeff

    Cheers,
    Jeff

    www.TSPinvestor.com

    in reply to: model or formula for monthly TSP allocations #17716
    NokieVA
    Participant

    Thanks Anne,

    I am using the Plus as my strategy. But have only started recently. I am really in the process of proving this model works and am open to all critique and suggestions. As the old saying goes on models – all models are wrong; some are useful. This strategy depends primarily upon gauging tendencies, not exact predictions of returns. Is it accurate? The model performance using historical data suggests some utility. Is it good for me, as TSP participant? The answer thus far is yes. To answer that I have to compare my old strategy to the current. I had a 50% C and 50% S buy/hold/reallocate yearly or so, for more than 12 years. And thus far the Plus has been better – though the data points are limited.

    So ….. we’ll see.

    Cheers,
    Jeff

    www.TSPinvestor.com

    in reply to: New to the game… #17671
    NokieVA
    Participant

    I know I’m posting to an older thread, but my $0.02 –> invest in an aggressive strategy when you’re young and leave it alone if you don’t want to worry. It will gain nicely over time. Maximize your contributions best you can .. and let it roll.

    If you want better returns and are willing to invest time and energy into, move to a monthly allocations strategy and get solid advice on where it should be. This strategy isn’t necessarily more risky with good allocation advice. But you’ve got to be more active in managing it.

    Cheers,
    Jeff

    www.TSPinvestor.com

    in reply to: Where should my money be now? #17670
    NokieVA
    Participant

    I believe your biggest worries (in order) should be:

    1. Are you contributing enough — minimum 5%, prefer 10%?
    2. Are you investing in an aggressive strategy (since you’re young) – buy&hold or frequent allocations is fine?
    3. If buy&hold, are you moving money to re-balance at least yearly?

    Re-assess your strategy at least every few years to see if it’s doing what you need.

    But if you want the best returns educate yourself on how to do it smartly. IMHO, monthly allocations are the way .. I saw the light — maybe a little late — but oh well.

    I used a 50% in C and S for 12 years .. looked like a fool a few times along the way .. and looked like a genius at other times. But overall the returns were decent.

    Cheers,
    Jeff

    www.TSPinvestor.com

    in reply to: Advice on my planned portfolio #17564
    NokieVA
    Participant

    First, I applaud your diligence in investing in your future. Not better time than your youth.

    Second, I highly recommend a more active strategy than yearly changes.

    Having said that, my mistake over the years was a fixed strategy with yearly re-balancing. It wasn’t a bad strategy at 50% C, 50% S; and before that 70% C, 20%F and 10% G. I only wish I knew then, what I know now – a monthly strategy works far better if you’re actively involved. And your returns will be much greater than any fixed strategy.

    Investigate it further. But again, your active involvement is a plus no matter what your choice.

    Cheers,
    Jeff

    Cheers,
    Jeff

    www.TSPinvestor.com

    in reply to: Help Moving from S to C fund. #17563
    NokieVA
    Participant

    much of the guesswork in which fund to invest is very subjective … having said that,

    my model/formula recommends about 50% in S .. the rest in C, F and G. It has recommended between 35% and 55% for the previous 4 months in S. So it is currently staying strong in S.

    Cheers,
    Jeff

    www.TSPinvestor.com

    in reply to: model or formula for monthly TSP allocations #17562
    NokieVA
    Participant

    not sure what that means .. and that isn’t an answer to my question .. if you have some useful comments and questions, I’m all ears

    Cheers,
    Jeff

    www.TSPinvestor.com

Viewing 7 posts - 1 through 7 (of 7 total)