questions about a stock market correction

[cwilt]

Out of a G, F, S,C or I fund which would weather the storm better. sorry i am not to savvy on stocks. thanks.

[bluejay10]

are these the funds in TSP?

[CatFan]

Out of a G, F, S,C or I fund which would weather the storm better. sorry i am not to savvy on stocks. thanks.

G by far, but by avoiding the big downside you avoid the upside as well.

[cwilt]

are these the funds in TSP?

Yes.

[cwilt]

G by far, but by avoiding the big downside you avoid the upside as well.

So its safer in "g" fund. I know its has slower gains. I left alot in there for too long.

Thanks.

[Bamaman]

Your title "questions about a stock market correction" just scares me to death.

The politicians have not done us any favors with net zero savings accounts and bonds. It forces us young retirees to keep all or most of our assets into the stock markets and/or mutual funds even though the market's overpriced and the economy's not doing well at all.

Some of those daily swings in the last few years have been tough on the nerves. In my case, I've lost or made more in some days than I did working in a year. And I've gotten pretty good at ignoring the market since retiring--and no new funds are going into my portfolio.

I'd hate to be 25 years old starting building a program of retirement savings with the stock market at an all time high and interest rates a net zero. I'd probably put it all into a diverse group of low cost ETF's.

[boneil]

corrections shouldn't be feared and crashes are unpredictable.

[merc123]

G is safest and I is usually most volatile. With that said with majority of my shares in the I and C fund I've seen 20% returns year after year. Only until recently in the past few have I seen some negative 2'a and less than 8% on my statements.


If you are young get out of the G. You may take a hit but you have time to recoup and your gains will usually outweighs the losses over time. Look into the lifecycle funds also if you don't want to manage the plan.

[cwilt]

I have a little less than 14 years till retirement, and want to start thinking about putting more (funds) into a less volatile account. And the way the market is so high, i think its inevitable that a correction is upon us. My accounts are 20% L50, 30% L20, 20% G fund, 20% F fund, and 10% C fund. So it's pretty diversified. Thanks for the info.

[RazorCat]

Out of a G, F, S,C or I fund which would weather the storm better. sorry i am not to savvy on stocks. thanks.

Are you familiar with TSPtalk?
http://www.tsptalk.com
Check it out, and consider one of the Premium services to help with investing decisions. They're tailored to the 2 IFT monthly limit.
Some services make moves among the various funds a week at a time, some give Buy/Sell signals based on a timing system.
Most average a $15.00- $20.00 fee per month. And there are general forums, and premium service specific forums where you can ask questions and get answers that relate to your specific situation.
I'm a retired Fed LEO. Been following TSPtalk for over 10 years. I was able to retire at 56 and never look back.
Give it a look. PM me if I can help in any way.

[bluejay10]

Your investing timeframe will be longer than 14 years. Even though you retire in 14 roughly you’re still going to be relying on this money to produce gains for another 20 years if I had to guess. So me personally I would still keep a good portion of my portfolio in stocks going into retirement and then slowly easy out of stocks into bonds later down the road. Granted I’m only 24 so I’m 100% stock based currently since I have time to ride the ups and downs and with your timeframe still being long I would imagine you could as well but a lot of that also depends on what other income sources you will have going for you. Another thing to keep in mind is when the government does raise rates which are almost guaranteed to be sometime again vs staying at these low rates the price of the bond will decrease causing a decrease in the bond portfolio as well.

[cwilt]

Thanks razorcat i will look at that site more in depth.

[mikeSF]

Here are the stats on our TSP for Dec 2015

	L Income	L 2020	L 2030	L 2040	L 2050	G Fund	F Fund	C Fund	S Fund	I Fund
1-Year	1.85%	1.35%	1.04%	0.73%	0.45%	2.04%	0.91%	1.46%	(2.92%)	(0.51%)
3-Year	4.18%	7.30%	8.68%	9.65%	10.48%	2.08%	1.93%	15.21%	13.13%	4.80%
5-Year	3.90%	6.50%	7.58%	8.33%	-	2.03%	3.57%	12.63%	10.65%	3.79%
10-Year	4.13%	5.41%	5.90%	6.19%	-	2.94%	4.74%	7.36%	8.03%	3.20%
Since Inception	4.14%	5.48%	5.97%	6.27%	3.95%	5.29%	6.45%	10.09%	8.37%	4.23%
Inception Date	08/01/05	08/01/05	08/01/05	08/01/05	01/31/11	04/01/87	01/29/88	01/29/88	05/01/01	05/01/01

[polywad6963]

Before I got out, I went aggressive with my fund, I am still young so even though I can't put more in it, I changed from G to C. Higher risk, higher reward. But I may see if I can roll it over to my Fidelity 401k

[bluejay10]

Poly are you not able to change the fund it is in? If I'm correct I believe TSP offer's the lowest fee's out there granted there's not many choices to it but he low fees are nice.