Re: [TSP_Strategy] Bi-weekly allocation

 

All great comments regarding F and G allocation. Just goes to show more heads are better than one!  The discussion has me rethinking a rebalance.

My rebalance might be 70% G, 20% F, 10% I.  Yesterday, the fed held out a willingness for future rate hikes and the market went down on an up day for oil.  Finally, we had a day when oil and equities moved in opposite directions albeit not in the direction we wanted. I will monitor the direction today as I have one TSP trade remaining for this month.  I am currently 50% G, 20% C, 20% I, and 10% F - I was 100% G but I succumbed to the temptation of last Friday's bear rally.  I see too much risk in the US market right now and think the smart money has one foot out the door on US equities and will leave us small fish holding their bag.

I am a risk taker, but as an aviator, I'm trained to evaluate and mitigate risk so this is what makes me take heed of sentiment right now: political, fiscal, monetary, geopolitical, China, falling crude prices, destabilized populations, etc.  I believe in protecting the goal line and do not like to lose any money - my views are derived from various sources such as this forum, Barrons, CNBC, and I subscribe to Michael Bond's service which all serve to provide many views.

Cheers, Eric

Sent from Yahoo Mail for iPad

On Thursday, January 28, 2016, 12:56 AM, Cindy King cindy.kingde@gmail.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:

 

Also, in 2015, the G Fund returned 2.04%, the F Fund returned 0.91%.  That's part of the reason why more people are using G instead of F now - where they might have used F in the past.

-- Cindy King

On Thu, Jan 28, 2016 at 12:25 AM, ryan smith mashiach7@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:

 

When interest rates rise, F fund goes down. The latest increase was not enough to cause this but when the fed raises the rates. The F fund will get hit.

Sent from Yahoo Mail on Android

 

Here's my reasoning. I'm open to learning and making better returns. 

I compared performance of G vs F looking at TSP history, and F beats G over 50% of the time.  

Long term F seems a better choice.  

If you're making a move to safety, F seems like a better bet than G. F typically moves opposite of C S and I. 

If F goes negative, its moves are subtle compared to C S and I, so a mistake in using F, is not a big mistake in the downward direction. 

G doesn't keep up with inflation so you are losing spending power over a long term. 

So if my simplistic analysis is true, then why go to G?  

It seems a typical rule of thumb I've seen in several places, 40% bonds - that's for non-TSP investor in their 50s. So 40% F seems to square with that advice. Also, it kind of lines up with L Fund ratios if you replace G with F. 

On Jan 27, 2016, at 8:50 PM, Doug Peterson dpatd10@gmail.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:

 

In my opinion 40% F and  0% G doesn't pass the risk/reward test, especially if that is a "set it and forget it" ratio. (And 21% I is really high). I would look for another advisor.

On Wed, Jan 27, 2016 at 8:05 PM, John toroboy682000@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:

 

My contributions are based on my financial advisor's advice. F40, C 26, S 13, I 21. I don't change contribution. They recommend staying with this as the portfolio allocation through thick n thin. 

But I do change allocation - currently F 40, C 40, S 20.  Changed Jan 6 from L2020 to get out of I fund. 

Less than 3 yrs from MRA+30 retirement.  Trying to preserve and gain at the same time. 

On Jan 27, 2016, at 1:48 PM, pickin6string@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:

 

Curious, I'm still purchasing S with my bi-weekly allocation.  What are others doing at this point?  I feel like I've read that it might be wiser to purchase C. 

Thanks!

__._,_.___

---

Posted by: Eric <mil.flyer@yahoo.com>

---

Reply via web post

•

Reply to sender

•

Reply to group

•

Start a New Topic

•

Messages in this topic (10)

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

Visit Your Group

• New Members 5

• Privacy • Unsubscribe • Terms of Use

.

__,_._,___

Anda baru saja membaca artikel yang berkategori dengan judul Re: [TSP_Strategy] Bi-weekly allocation. Anda bisa bookmark halaman ini dengan URL https://1stleadershipworkshop.blogspot.com/2016/01/re-tspstrategy-bi-weekly-allocation_44.html. Terima kasih!

Ditulis oleh: Andriansyah -