My point for Ed's consideration was, there are a lot of options for TSP investors between "set-and-forget" S or G Funds and the L Funds. Finding the right portfolio and strategy that meets his expectations and comfort level is worth exploring.
I think watching TSP funds closely should be followed closely by making moderate adjustments when necessary.
It seems to me that making 100% moves in the middle of a trading day relies too much on market timing for when to get in or out. One day either way can make several percentage points difference... and that could be in the wrong direction if you're not lucky!
Regarding the "all your eggs in one basket" quote, it appears that either Mark Twain or Andrew Carnegie were quoted much earlier than either Warren Buffet or Bill O'Niel. Regardless, it's an interesting approach for some to consider. It's just not the right one for me.
Jim
Now that maybe contrary to Warren Buffet's adage, "Keep all your eggs in one basket, but watch that basket closely." But I don't think he meant leave it forever as if you have no other options and nothing has changed since then!
To my knowledge, that was Bill O'Neil.Contrary to others in the TSP Strategy group, my strategies for TSP allocation and contributions are different. I'm still buying into C and S, and even some I Fund with 100% of my payroll contributions.
BION, the Dow and S&P are still bullish long term. The S fund is uncertain.Holding 100% S for a year or more isn't right the right strategy for everyone, especially those a few years from retirement. Consider a mix of some or all TSP funds to reduce risk, and see if different percentages for allocations and contributions makes any sense for your situation and comfort level.
Hence, the justification for the L funds.As Sarah often says, you want to chose a personal TSP strategy that allows you to sleep well at night. That advice applies while you're early in your work life, a few years from retirement, and when you are retired too. I would think most people's strategy evolves over time as they learn more, as their strategies are tested by market conditions, and as their personal situation changes.Hope that helps, Ed. Hang in there and good luck!Jim
Posted by: JM Bud <jmbud2@gmail.com>
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