How to Almost Never Lose Money in The TSP

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  • Опубликовано: 30 окт 2024

Комментарии • 61

  • @mikepool5955
    @mikepool5955 3 года назад +21

    Funds as baseball hitters:
    G fund hitter. He can only bunt the ball 1 foot in front of home plate. But guarantee that bunt 100% of the time.
    C fund hitter. He can hit the ball fairly consistently over time with an occasional home run.
    S fund hitter. Sometimes he strikes out. but has the highest percentage of home runs on the team.
    Well that's how I call it.

    • @Retired-jr3qs
      @Retired-jr3qs 3 года назад

      @Mike Pool well said!!

    • @mgranvee8549
      @mgranvee8549 3 года назад +2

      Love it. What about the F and I fund. Do they ever get into the game? 😀

    • @bigtime2413
      @bigtime2413 3 года назад +5

      Taxes and Inflation are the bad call umpires 🤣🤣

    • @jannaakahanzo4649
      @jannaakahanzo4649 3 года назад

      @@bigtime2413are they beta sticks like amc? Beta is the answer. Most things that run opposite to the market. Those should jump up like AMC. I’m just not sure how to do it with TSP yet. Yes

  • @wendybaby83
    @wendybaby83 3 года назад +7

    Your advice is GOLD! it's common sense for some of us but others need to hear this. Some treat it like day trading 🤦‍♀️

  • @drmitofit2673
    @drmitofit2673 2 года назад +2

    How about this strategy? Set contributions to 100% C fund. Allocate 75% C fund and 25% G fund. If the S&P 500 enters correction territory (down 10%) transfer from the G fund to !00% C fund. This buys C fund shares at a bargain price. If the S&P hits an all time high, wait 1 month (to ride the high a bit) then go back to the 75/25 (locking in some gains). I am in the C fund 100% right now with the market in correction territory, and I will wait it out but regret not having some G fund to buy more C fund.

  • @mjj4780
    @mjj4780 2 года назад +3

    Does this advice still stand for the current market and where it looks to be going?

  • @fharvey323
    @fharvey323 3 года назад +4

    Another great video and excellent analogy about home value and TSP value

  • @antoniobailey635
    @antoniobailey635 2 года назад +2

    Really love this video. Best advice I have ever had. I jhad moved my funds to G from C and S, as I was worried about Market- will just let it ride.

  • @pal8h
    @pal8h 3 года назад +9

    Correct me if I'm wrong but my current understanding of TSP withdrawal rules is that can't specify from which bucket of funds you want to withdraw. For example, if you had $100K in the G Fund as your cash reserves and $900K in the C Fund for your growth bucket and you wanted to withdraw $10K, TSP would take $1K from the G Fund and $9K from the C Fund. You can manually rebalance your account but something to consider if you want to implement this withdrawal strategy.

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  3 года назад +1

      Good point!

    • @RAToellner
      @RAToellner 3 года назад +2

      @@PlanYourFederalBenefits With the TSP withdrawal rule would it be advantageous to transfer all funds to “G” make the annual withdrawal amount I have calculated based on the 4% rule and then reallocate funds back to “C”, “S”, “I”, or “F” (exact fund to be based on my choice) after the withdrawal to continue growth? I planned to keep my cash bucket in “G” at approximately $100,000 based on the need for this amount to cover 5 years. The remaining $900,000+ used for growth. I am currently 100% “C” with over 1 million and retiring in 1 year.

    • @MrDarkBM
      @MrDarkBM 3 года назад +3

      This is exactly why I am switching to vanguard when it comes time to withdraw.

    • @olegmuravov3921
      @olegmuravov3921 3 года назад +4

      I confirmed with the TSP representative in February 2021 that for withdrawals, we can only choose the money to be taken from TSP’s Traditional portion, Roth, or pro-rata, but we cannot indicate a particular TSP fund, or funds from which money to be taken. Thus, unless one keeps everything in the G fund, when the market is down we still be “selling” non-G funds shares at unfortunately low cost per share regardless whether and what we move into the G prior to the withdrawal.

    • @priola7587
      @priola7587 3 года назад +3

      @@MrDarkBM This is probably what I'll end up doing, too. Unless TSP addresses this issue.

  • @Rdominca
    @Rdominca 3 года назад +7

    I'm a big believer in TSP and diversification (L funds), but you lost me with this particular video. First, my house and my TSP account are an apples-and-oranges comparison. I can live in my house, I can pay it off, and the title will have a lien until I do pay it off. My shares in TSP are bought incrementally and, once bought, are mine (fluctuations and all). Second, since Zillow came along, the idea that volatility in housing prices is invisible to homeowners seems quaint.

    • @Tolohtony
      @Tolohtony 3 года назад +1

      The analogy is spot on.

    • @stephendibari5010
      @stephendibari5010 3 года назад

      I was thinking the same regarding Zillow. I get a monthly appraisal email of what my townhouse is approximately worth, typically I’m seeing about a 1% monthly increase over past 12 months

  • @stephendibari5010
    @stephendibari5010 3 года назад +6

    Great advice on the 2 bucket strategy. But as I read you can’t withdraw a certain % from a particular fund. TSP divides out your withdrawal proportional to your existing account balances.
    For example: $100k balance and you have 2 funds C and G. You withdraw $10k TSP takes $5 k from G and $5k from C.
    This defeats the purpose of the 2 bucket method. TSP needs to change the withdrawal method based on the account you want to withdraw from. I should be able to just pull the 10 K in this example from the G fund and leave the C fund alone.

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  3 года назад +1

      You are right, it is much easier to use the strategy in an IRA.

    • @elainenilsson5472
      @elainenilsson5472 2 года назад

      Why do you suppose it is this way? Is there too much red tape involved? You'd think everything was automated this year.

  • @barrymitchell7732
    @barrymitchell7732 2 года назад +2

    What is the best way to withdraw from TSP?

  • @luckypenny4263
    @luckypenny4263 Год назад

    I needed this video

  • @davidboles5099
    @davidboles5099 2 года назад +1

    I have a ? I retire Dec 31st 31 and a half years plus 13 years 10 months from usmc. Sold house and paid that off and 2nd mortage. If I don't need anything from tsp is it good to stay where I'm invested . Can I put money in tsp and how much in a Roth ira

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  2 года назад

      If you don't need your TSP for a long time then you can invest it more aggressively.

  • @michaelroy925
    @michaelroy925 2 года назад

    I love your videos, thank you so much for putting this information out for all😀 Would you say having my tsp in the straight L fund in retirement would be a good strategy? Enought to beat inflation?

  • @stevedavis3370
    @stevedavis3370 3 года назад +3

    Awesome information, thanks!

  • @lensnart1303
    @lensnart1303 2 года назад +6

    I'm 57 y/o, have $254,000 in my TSP, and just put all of it in the G fund. Had it in the L2030 fund for a long time, but I'm too nervous about the stock market right now.

    • @robertleejohnsonsr63
      @robertleejohnsonsr63 2 года назад +3

      Keep it in the G fund until the recession is over. I had 400k Dec 2021 now I have a little over what you have now, I should have put my money into the G fund.

    • @lensnart1303
      @lensnart1303 2 года назад

      @@robertleejohnsonsr63 Dang, that sucks! I definitely will.

    • @stevem-zk6ki
      @stevem-zk6ki 2 года назад

      unless u are going to retire now..i would not sell low and go into G. yes after the November election the market will drop because the fed will start to actually do the tightening but in a year or so it will rise and biweekly u were buying the dip in c and s fund. have a little courage. it goes a long way

    • @andreawales1938
      @andreawales1938 5 месяцев назад

      A down market equates to a sale on stock! The market *will* rebound eventually. Never have everything in the G Fund because there isn’t enough growth in the G Fund to offset inflation over time.

  • @DailyOpinionsUSA
    @DailyOpinionsUSA 3 года назад +3

    I get a question. Is the current market bubble and overpriced? If it is and it goes down to its real value, do we lose the money for good?

    • @mikepool5955
      @mikepool5955 3 года назад +3

      You need to pose this question to Warren Buffett.

    • @mikepool5955
      @mikepool5955 3 года назад +1

      TSP or 401k investment plans have allowed the average Joe to play in what WAS a rich man's game. Now, a bunch of money from a broad cross section of the population is throwing a percentage of their future retirement money into the TSP and 401k. I think that puts an unprecedented amount of pressure on TSP/401k managers to find companies to put that money in. Sure, if interest rise, then the stock market takes a haircut. Why risk the stock market if bonds can beat inflation? Of course, if you have an idea that can make you some money, then go for that. Otherwise I will ride the coattails of companies that already had a great idea in the past.

  • @endirrwiggins2494
    @endirrwiggins2494 3 года назад +2

    Great advice

  • @elainenilsson5472
    @elainenilsson5472 2 года назад +1

    Can't wee simply move money from the L to the G or all of the money to the G and then we don't have to worry about what account the money is coming out of?

    • @jalensellars7868
      @jalensellars7868 2 года назад

      Yes you can call and have them do it or i believe you can login to your account as well.

  • @esequielbalcazar8467
    @esequielbalcazar8467 2 года назад

    Hello! I am currently 18 years old and I joined the army national guard. Right now my TSP is set up to 75% c fund and 25% s fund. However I since I am in the guard component, i will not be able to contribute much money since my paychecks will only come from 1 weekend a month. Is there a way I can deposit money into the TSP straight from my bank account? Or do you recommend me opening up an account with vanguard or others like that, so whenever my contract is over I can just roll it over. Please help

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  2 года назад

      Feel free to submit your question here: app.hawsfederaladvisors.com/question-submission
      This is where we get topics for future videos.

  • @scottmagruder6907
    @scottmagruder6907 3 года назад +2

    So in addition to maxing out TSP, I'm supposed to have 3-5 years of annual income in a savings account? I agree with what you are saying, but saving an additional 300K in a savings account seems like a loss over time and that money is not working for you. Or did I misunderstand what you were saying?

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  3 года назад +1

      The 3-5 years of income should be in something conservative but something that will still grow.

    • @alrocky
      @alrocky 3 года назад +4

      That "I'm supposed to have ..." sounds like something akin to an Emergency Fund. Consider contributing *$6,000* to a *Roth IRA* every year instead.

  • @sukhjitraju2912
    @sukhjitraju2912 3 года назад

    Thank you.

  • @b.williams3095
    @b.williams3095 2 года назад

    Thanks for your videos they are great. So, lets say I use the cash bucket and have 3 to 5 years of cash in the G fund. If I need some cash can I withdraw it just from the G fund or will it come out of all the funds I am invested in?

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  2 года назад +1

      That is one of the downsides of the TSP compared to an IRA. You can't pick which funds your withdrawals come from. It comes out proportionally.

    • @richardgrigg1837
      @richardgrigg1837 2 года назад

      Once you make your withdrawal, you can rebalance (Interfund Transfer) back. Effectively making the withdrawal from your G fund.

  • @ivettesilvas697
    @ivettesilvas697 3 года назад +1

    Any chance you can talk about non-TSP accounts that can work for other savings (emergency fund, down payments, etc)?

  • @averywa4
    @averywa4 3 года назад +1

    I enjoy your videos. Your website is not very informative. Who are you? How are you qualified?

    • @ozelot250
      @ozelot250 3 года назад +8

      @@stephendove2850 how is this guy a joke if he is trying to teach us to better understand our TSP? He’s not trying to sell you anything. So what if he’s not certified. So what if his information is based off OPM or TSP websites.

    • @stephendibari5010
      @stephendibari5010 3 года назад

      @@ozelot250 exactly

    • @lisaparsons6246
      @lisaparsons6246 2 года назад

      @@ozelot250 agreed 👍