TSP Strategy

[PeoplesElbow]

Just wanted to let people know what I am doing, my reasoning, etc because you could benefit in the right situation.

First off I want to say luck was involved, and I do take some risk in my strategy.

I got out of the C and S funds back in early January because I thought the impeachment was going to have an adverse effect on the market. I also believe falls are somewhat of a self fulfilling prophecy and there are too many that were hoping for a bad economy for political reasons that it would happen.

I was wrong I thought the impeachment would be the catalyst and felt stupid for the last 6 weeks as I had my money in the L Income fund. Turned out after doing some calculations I preserved $70k in value.

So now on the ride down I am making interfund transfers to the C and S in 10% increments.

Like I said before there is some luck involved but this has worked for me before.

My ultimate goal is to make some of the valleys not so deep so the peaks are higher.

 

[transporter]

So in other words, your initial decision was absolutely wrong.

You just got dumb lucky (assuming what you say is true). That's really not a "strategy".

 

[Spitfire]

Greetings:

Might not be a bad idea. I got (mostly) out of equities in Oct, 2019. That turned out to be a bit early and I left money on the table, but all in all I'm happy with it. I expected this sooner.

How much longer until retirement for you, if you don't mind me asking?

 

[PeoplesElbow]

Greetings:

Might not be a bad idea. I got (mostly) out of equities in Oct, 2019. That turned out to be a bit early and I left money on the table, but all in all I'm happy with it. I expected this sooner.

How much longer until retirement for you, if you don't mind me asking?

17 years till full retirement age

 

[PeoplesElbow]

So in other words, your initial decision was absolutely wrong.

You just got dumb lucky (assuming what you say is true). That's really not a "strategy".

There was a bubble that was eventually going to pop.

Dollar cost averaging is a well regarded strategy buying in a correction/bear market.

Say what you want I'm 45 and have over half a million.

 

[Spitfire]

17 years till full retirement age

Greetings:

Roger that. Not a financial adviser, but I know mine would have encouraged me to wait it out. It's a tough decision, but sounds like you hedged as best you're able.

 

[PeoplesElbow]

Just wanted to say a little over three months into the COVID crash my personal investment plan return for the last 12 months is sitting at 11%, not bad.

 

[Monello]

Lacking a crystal ball, most times a little luck never hurts.

 

[Merlin99]

I've got to admit that my 401K took a big hit, about $80K, but it's rebounded to within $3K as of yesterday.