Lost 40K in my TSP acct this year.................

[NeilinFR]

OUCH!! That hurts.

I've been investing 20% in international stock, 20% in small cap & 60% in the S & P.

The other choices we have are bonds & the gov't "G" fund which is merely a savings acct.

Since the European market is run by 28-30 countries, I doubt they can agree on anything regarding stocks/mutual funds, so, I see the overseas markets in disarray for while.

.......I've decided to stop overseas investing & moving my investing ( payroll ) deductions back to the U.S. markets for a short while.

Anyone else doing something similar? ...or....are you sitting tight on your investments?

Why or why not?? ............see ya mark

Mark Ive got mine in a few spots, the ones doing the best are the Fidelity Low Priced Stock Fund and the Van Kamp Income and Growth fund. Like you I lost some money but its rebounding really well now, I even bumped up my 401 deduction about a month ago to take advantage of the lower prices right now.
I always max out my Roth 401k and I keep about 30percent of my money in a guarenteed fund that right now is paying 3.25%, not much, but its always paying.
I would check and see if youve got any money invested in the big 3 automakers, and if so, get rid of it. I think they are in worse trouble than we are seeing and since they had no management changes.......well, they arent someone I would want my money invested in.
Neil

 

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[lastleg]

In response to Mrs. Oroblanco, the Thrift Savings Plan was offered to
Federal employees (1987) to replace Civil Service. CS employees do
not contribute to Social Security and many CS veterans have to go
back to work at below average pay to earn SS Credits. The TSP works
like a no-load mutual fund family in that when you switch from the C
(Treasury) fund to a stock fund there is no loss in value. But when you
switch from a stock or bond fund you liquidate all or part of your position
to the safer fund and "Secure" (see link) a gain or loss. But if you ride
the storm in the stock or bond funds you have a Paper Loss only.
So selling your stock or bond shares "secures" your loss. If you then
want to return to the stock or bond market you will have the loss-
adjusted amount to invest. Most TSP investors were caught flat-footed
by the Wall Street Wreck and many did not understand the consequences
of selling their shares at a loss. We all suffered a loss of confidence in
a greed-controlled market. lastleg

 

[mark.]

WOW, that's been some interesting reading, thanks.............see ya mark

 

[mrs.oroblanco]

Lastleg,

Thanks for the insight.

My father-in-law was Civil Service all his working life - but he also had "civilian" jobs (he usually worked 3 jobs most of his life).

When all was said and done I didn't really see a loss anywhere last year, when I went through years of paperwork after Roy's mom died, or any kind of 'change' in anything in his paperwork. (account-wise).

B

 

[oneeye]

My 401K was down nearly $50,000 at its lowest (so far). It has regained nearly $10,000 in the last 2 weeks. I am still very young (42 years old), so I will ride out the highs and lows that are always present in the stock market. In fact, there are some real good buys out there right now if you do your research and invest in good compnaies that produce good products or services.

The company that produces colgate toothpaste and palmolive soap posted a 20% increase in profit last year. We do not stop buying or consuming during recession.
Dan

 

[mark.]

My 401K was down nearly $50,000 at its lowest (so far). It has regained nearly $10,000 in the last 2 weeks. I am still very young (42 years old), so I will ride out the highs and lows that are always present in the stock market. In fact, there are some real good buys out there right now if you do your research and invest in good compnaies that produce good products or services.

The company that produces colgate toothpaste and palmolive soap posted a 20% increase in profit last year. We do not stop buying or consuming during recession.
Dan

I agree. My accts has risen slightly over the last few months. I'm 49 & have 10+ years at least before I tap into it. Hopefully the markets will bounce back a lot better by then.

As I read on a post here above, I've also bumped my investment $$ into the funds, trying to get as much as possible while the accts. are taking a beating.
Great topic, thanks everyone for contributing............see ya mark.

 

[airborne1092]

Mark.

I put my TSP on autopilot and was drug, kicking and screaming, off to Recruiting duty for 3 years. I recently recovered my password and checked out my account and all I can say is -

I know how you feel.


I was putting 100% in the I fund and had transfered all my savings into the fund as well about 4 years ago. When I left it, I had a modest 26 grand total. When I checked it, I had less than 12,000. What is that, about a 60% loss? The good news is, I'm still young enough to bounce back some before retirement. Of course, it's my own fault because I failed to manage my own money and I keep putting all into a single fund! I still have another 3-6 years before I'll retire (17 years+ now in the Army) so perhaps I can redeem myself, eh!?

 

[mark.]

I suppose it really didn't matter what type of investment we all are involved with............cuz all accts. took a beating. While the share prices are down, I look at them as "being on sale" so to speak.

That's why I increased the amt of $$ I can put into it.
For what it's worth, I now put 33% in the S Fund, 33% is in the I fund & 34% in the C fund.
I don't mess with the G fund, it's like having a savings acct, not much return there. Same with F fund, low return for bonds.
I like to diversify to keep the risk of loss down.
My accts has increased about 9K but it still has a looooong way to go to get back to last summer's totals. The sad part is.........with the current administration, I don't see that figure coming back for a few years. Thankfully, I have 10 years before I can touch it...................see ya mark

 

[lastleg]

If TSP contributors had some in the safe haven G Fund they
wouldn't be looking at share prices in stock funds halved. But I
got blasted in my mutual fund stock shares too. Too much
complacency and failing to recognize the dangers in the market
around 1350 on the Dow. In my case I have to wait it out and
let the market recover. Even in the sheltered IRA if you switch
to another fund name you take the hit if you sell. If you hold
on you have a paper loss only.
You guys are still young enough to recover as these bear
markets don't last much over three years since new money
is always seeking higher returns that safe stocks offer.
We all learned a hard but valuable lesson. Buy & Hold is no
longer a safe strategy. Too many crooks spoiling the pot.

 

[mark.]

Well..............I made the original post in Oct 08 about the TSP fiasco.

I read this from the TSP Site:

Your Personal Investment Performance (PIP) for the 12 months ending 09/30/2009 is -1.38%.

Hmmm, -1.38% I guess that's not too bad considering the beating I took last fall.

I decided to moved from 6% to a full 10% payroll deduction to buy more of these funds while they were in the tank. So, I changed to 30% international, 30% small cap & 40% in the S & P acct.

The acct. has made somewhat of a comeback, probably due to raising my deposits to buy more shares.
I still have 9.5 years before I can use it, so bear markets are fine with me at the moment.
Has anyone else out there been buying more while the markets are in the tank??

Are you buying less?? ....or staying the same??

Curiuous what others are doing...........see ya mark

 

[lastleg]

Mark:

Congratulations, you are doing all the right moves with your TSP account.
When I retired in '97 I transferred my TSP into a regular IRA at Vanguard.
In less than a year I will be required to draw down from my IRA, the plus
is I only had a few years of getting the tax deduction. Wish they had a
ROTH back then. Also when I was working I bought U S Savings Bonds
which I am saving for a rainy day.
I hope your example will encourage other federal employees to save all they
can WHILE they can for the rainy days to come.

lastleg

 

[rmptr]

NOT TSP account, but my friend's 401k is now down 50% from when he began it maybe 4yrs ago at a company he has since left.

I really can't see how any rate of investment return is compensating for the lack of buying power of the dollar.
Maybe someone could explain to me

I had a request when I went to the market a few days ago to also bring home a package of M & M candies...
You know, the kind that used to be a nickel ? They were 80 cents.
The bread rolls I bought were up a whole buck ! Nearly one third increase in price.

Good luck
rmptr

 

[lastleg]

rmtr:

You are absolutely right, everything you need to survive on costs more.
Gvmt inflation figures are rigged. No cost of living increase for seniors this
year on SS! Give me a break. Big bank credit cards going to variable rates
to gouge consumers. US Financial System in danger of failing unless citizens
demand reform. Avoid debt and save all you can. Gold/Platinum is too high
to buy now. The days of Silver investing are over too IMHO. Saving Bonds
are safe but hard to track. Bond mutuals are best bets. Foreign stocks offer
the highest appreciation but not for the feint of heart. Under the mattress?
Just a few months ago we could have bought plat at $793 oz Window closed.

lastleg

 

[rmptr]

Yes, LL, I don't know who to feel worst for, anymore....

I think the elderly probably have it worst because many of them are unable to supplement the small incomes they were promised.

It will be as bad for young people, but they do have more capability to adapt.

Best

.

 

[lastleg]

rmptr:

Yes but the seniors will be protected somehow by Congress. Dems can't
do without their votes.

The young folks have fewer opportunities today than ever. Long lasting jobs
have been eliminated in the never ending search for cheap labor. Automation
and outsourcing have crippled the American dream of retirement.

Jobs that were so plentiful before have disappeared. Can the Service Ecomony
sustain the job seekers? Service jobs pay the bottom rate and have few benefits and no old age help so everyone who has some sort of job gets thrown
onto the Social Security rolls. Eventually SS and Medicare will be shaved but
never eliminated. That would be political suicide.

Unless the young workers find a sustaining profession I think most are in for
a tough battle.

 

[mrs.oroblanco]

Worse yet - if you are a newly retired person, this year, you will have a smaller check in January, because they are going to charge you more for your medicare.

Plus, part D will also probably go up.

B

 

[borninok]

Mark,

I xferred everything to the G fund on my TSP after having lost about 16k. Then recently I put it back into the I fund....gained about 6K back....and then just lost 6K yesterday......

However, I'm about the get the Royal Screw even worse........I am going through a divorce. She gets 1/2 of my TSP and 1/2 of my govt retirement. And that 1/2 of my TSP is what WAS in my account as of Mar 09 when we separated......

Can anybody say..... she got the gold mine and I got the shaft.

Mel

borninok

 

[mrs.oroblanco]

Gosh, Borninok,

That sucks, and I empathize with you - and there are very few ways you can get around those darned laws (already tried). If you have been married for any length of time, its pretty much a done deal, and don't waste your money on an attorney to fight it.

B

 

[mikeofaustin]

I used to dabble in trading, and people will always tell you that it's always a 'guess'. BUT, if you really look at the numbers, examine the company, books, valuation, etc, etc... you can pretty much predict where the price should be and peoples over reaction or under reaction. I remember when RIMM was around 120(?), and dropped to 80 after earning came out... (earning didn't fit the price), and I told them to buy at 40. I did, and got a pretty penny. Also got MCD at 49 and sold at 62 after only a few weeks. This was when all heck was breaking lose recently. People also over react and under react when earning comes out - but that's usually a short trade. Or more realistically, it's people who don't know how to trade that do that.

But it's all a mute point unless you have a lot of bucks to throw down on a trade, because otherwise its' just $300 here and there. Hardly worth the stress. (when I say 300, I mean something that you've researched for a while and know it to be a good thing, so on the long haul it's not worth it).

My best profits were when the stocks took a nose dive because of something else that didn't' have anything to do with the stock I was watching, and the value didn't fit the books (over reaction). Find the 'bottom valuation' and if it hits that point, buy, then wait for it to climb and sell.

It really is in learning the books.

ROST is another one of my favorites, you can do a pretty good job of predicting it's waves. that's more of a year long trade though.

 

[mark.]

Mark,

I xferred everything to the G fund on my TSP after having lost about 16k. Then recently I put it back into the I fund....gained about 6K back....and then just lost 6K yesterday......

However, I'm about the get the Royal Screw even worse........I am going through a divorce. She gets 1/2 of my TSP and 1/2 of my govt retirement. And that 1/2 of my TSP is what WAS in my account as of Mar 09 when we separated......

Can anybody say..... she got the gold mine and I got the shaft.

Mel

borninok

Now that is a bummer! Sorry to hear that................see ya mark