People are selling their investments off like crazy, so it’s safe to ask yourself if there is anything you can do to protect your Thrift Savings Plan (TSP).
It is possible to move your funds from the C Fund or S Fund into the much safer G Fund, but is it truly worth it after all the recession-related sell-offs in the last month?
I’m not a financial expert, but if I could go back to February 19th, I would have move all my money from the C and S Funds into the G Fund to protect my retirement investments.
But because I didn’t at the time, I’ve lost nearly $30,000 as the NASDAQ, S&P500, and Dow took a nose dive into unprecedented losses.
So is it too late? The market movers and shakers are creating an incredibly volatile market right now, but it’s possible that indexes like the S&P 500 will reset and rebound based on the pending fiscal and economic stimulus bill that is sitting with the Senate right now.
If you’re still interested in transferring funds from one Fund to another, it is very simple. Log into your TSP.gov account, and click on “Interfund Transfer” on the left side. Designate what percentage of your funds you would like allocated to each Fund, and click “Submit.”
Be sure to share this video with someone who may need inspiration when it comes to personal finance. I don’t have all the answers, but together we can all help each other!
stock market 2020…(read more)
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Protect Your TSP During The Stock Market Recession
The stock market is an unpredictable beast, which means that investing involves taking risks. One of the potential risks associated with stock market investments is a recession. A stock market recession occurs when the larger economy is in a downturn, there is a sharp decline in corporate earnings, and stocks experience a significant drop in value.
If the stock market is currently experiencing a recession, and you are concerned about your Thrift Savings Plan (TSP) investments, there are strategies you can use to protect your investments.
One of the strategies you can use to protect your TSP during a stock market recession is to diversify your investments. If you have all of your investments in one type of fund, then you are vulnerable to the risks of that market. Diversifying your investments reduces the risks because it spreads your money across different types of funds. This means that if one market is down, your other investments might still perform well, without leaving you exposed to too much risk.
Another strategy to help protect your TSP during a stock market downturn is to reduce your investments in stocks. When the economy is doing well, stocks are a great way to build wealth. But when the economy is in trouble, stocks can lose a lot of value very quickly. By shifting your investments into safer assets like bonds or cash, you can help protect your TSP during a recession.
You may also want to consider moving your investments into the more conservative TSP funds which include the G-Fund and F-Fund. The G-Fund contains bonds issued by the US Government and is generally considered to be the safest fund offered by the TSP. On the other hand, the F-Fund contains government, corporate and mortgage-backed bonds, making it slightly more risky than the G-Fund, but still a safer option than stocks.
Another strategy that could help protect your TSP from a stock market recession is to take a more active role in managing your investments. If you monitor your portfolio and make changes as necessary, you may be able to protect your investments from the worst of the downturn. Watching market trends, and making changes to your investments can help you stay ahead of the curve, and keep your TSP safe.
Finally, it is essential to stay calm and avoid panic during a stock market recession. Although it can be tempting to sell your investments and pull your money out of the market, this can often be the worst possible strategy. Selling during a downturn can lock in your losses, and you may miss out on the rebound when the market eventually recovers.
In conclusion, protecting your TSP during a stock market recession is all about reducing your risks and making safer investments. By diversifying your investments, reducing your stock holdings, moving your investments to safer funds, taking a more active role in your portfolio management, and avoiding panic selling, you can help protect your TSP from the worst effects of a market downturn. Remember, investing requires a bit of risk-taking, but with careful planning and some smart strategies, you can keep your TSP safe and secure in the long run.
No no, you don’t “lose” money unless you pull from your TSP! Just because the market is down and your account is less in value does not mean you lost anything, it just means the stocks you have are less in value: you still have the same number of stocks as long as you don’t mess with your accounts!
Realistically, a down market is preferable for people like you and I, as we are young and are buying shares at a discount as we contribute during these times. Don’t mess with your stuff, contribute and let it grow when the market recovers.
Contribution Allocation (new money) – stick with C and S. Buys at the lower prices.
Interfund transfer (Current money in account) – move some to G to protect against drop.
I'm feeling this video is suddenly relevant again.
I didn't get into the G fund in february so I figured I'd just try and weather the storm; fortunately the market is pretty much back and I'm in the black now. Although I missed out on getting into the G fund back in Feb…. I DID max out all my catch up contributions right after the markets bottomed out. So, I was able to take advantage of lower stock prices.
This video was made/posted on 24 March; if you switched back to the C,F, and I Funds awesome job catching the bottom (23 March)! Would love to see a follow up video on where you’re at now and if you think it’s time to switch back to G/F Fund as we are back to all-time highs, but the pandemic is still on-going… I’m predicting a pullback soon. Thanks for sharing!
Thanks needed this video
damn bro your creaming your account you dont think the economy numbers are about to get better in the near future do you .. so why would you think long bruh slow down a bit the loss was made you need to pick you spots better and when you do commit long up your percentage so you can bring down your cost average. Please be carefull with your hard earned doe