The funds have not changed, my strategy has not changed but the investing environment has and so must your allocations if your retirement nest egg is to survive. Denial is in the air everywhere we look. Don’t follow the herd.
This is not rocket science. It just takes time to do the research which is not something most investors have. This 15 minute guide will save you a lot of time and hopefully increase your future returns starting today by changing some assumptions about the TSP funds you can invest in.
So why does the market not care about crashing profits? Because profits and the economy have not driven this bull market. Just the opposite. Bad news often sends the markets surging. Why?
I am not impressed with the advice I have found on the internet for investing in TSP funds. I really don’t think it is that difficult to do the basic analysis, but I just do not see it anywhere. Sure, I see the market technicians and I often see options for long term investors like the aggressive allocation, the moderate allocation and the safe allocation. If you see this, run don’t walk.
The Lifecycle funds of TSP and Vanguard provide a good baseline for investors on how to allocate their accounts based on their age or years to retirement. We just finished updating our look at the current allocations of TSP and Vanguard Lifecycle funds.
Dollar Cost Averaging is not investment strategy but it could still be useful to re-enter the market after a bear market if your investment strategy moved you to the sidelines in time.
The S&P 500 is currently bouncing between support and resistance. Market internals are giving no clues as to the direction of the market. So as we wait on the market to digest investor expectations, I decided to continue to compare the current situation… Read More ›