Warren Buffett on the TSP Article:
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Cooper Mitchell helps federal employees better understand their benefits and helps them retire on their terms. Using financial planning and investment management, Cooper is able to tackle the issues that are unique to federal employees.
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LEARN MORE ABOUT: Thrift Savings Plans
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Warren Buffett on Investing in the TSP
Warren Buffett, widely regarded as one of the most successful investors of all time, is celebrated for his expertise in choosing stocks and making profitable long-term investments. As the chairman and CEO of Berkshire Hathaway, Buffett has achieved remarkable success, amassing a net worth of over $100 billion through his savvy investment strategies. Thus, his insights and advice on investing can be highly valuable to both beginner and seasoned investors alike.
One area where Buffett’s wisdom can be particularly helpful is in navigating the Thrift Savings Plan (TSP). The TSP is a retirement savings and investment plan specifically designed for federal employees and members of the uniformed services. It offers the opportunity to save and invest for retirement with various options for asset allocation and diversification. Buffett’s principles of investing can be applied to make the most out of your TSP and lay a solid foundation for financial success.
One of the key principles Buffett advocates for is long-term investing. Buffett famously said, “Our favorite holding period is forever.” His approach is all about investing in companies that have a strong competitive advantage and solid long-term prospects. With the TSP, investors have multiple fund options, including the C Fund (which mirrors the S&P 500 index), the S Fund (small and mid-cap stocks), and the I Fund (international stocks). Buffett’s advice aligns with investing in these funds with a long-term perspective, as he believes in the power of compounding returns over time.
Another critical aspect of Buffett’s philosophy is the importance of value investing. Buffett looks for companies that are undervalued and have strong fundamentals. He famously said, “Price is what you pay. Value is what you get.” Applying this principle to the TSP, investors should focus on the fundamentals of the funds they choose. Analyze the historical performance, expense ratios, and any other relevant factors to identify funds that are undervalued and have the potential to deliver strong returns over time.
Furthermore, diversification is a key factor in Buffett’s investment strategy. He advises investors to not put all their eggs in one basket and emphasizes the importance of having a well-diversified portfolio. When it comes to the TSP, diversification can be achieved by allocating investments across the different fund options available. By spreading investments across various asset classes, investors can reduce risk and potentially enhance returns.
Buffett also emphasizes the importance of staying informed and educating oneself about the investment options available. Understand the TSP’s rules and regulations and stay up-to-date on changes and updates. Buffett is known for spending a significant amount of time reading and analyzing financial statements, annual reports, and industry trends. Taking a similar approach can empower TSP investors to make more informed decisions and maximize their investment returns.
While Buffett’s principles can provide valuable guidance for investing in the TSP, it’s important to remember that investing always comes with risks. As with any investment, it is advisable to conduct thorough research, assess personal risk tolerance, and consider consulting with a financial advisor before making any investment decisions.
In conclusion, Warren Buffett’s investment wisdom can be applied to maximize returns and make the most out of the Thrift Savings Plan. Adopting a long-term mindset, focusing on value investing, diversifying investments, and staying informed are key principles to bear in mind. By incorporating these strategies, investors can strive to achieve financial success and build a solid retirement nest egg through the TSP.
start investing today. they say the man who sits in the shade of a tree, planted it 10 years ago. plant that tree and let it grow!
OMG. It took me longer than it should have to realize that this was Coop from Garage Gym Reviews too! Well now I can thank you for both helping me get my home gym set up and investments for my government job. You are awesome!!!!
Is this coop from GGR?
I. think the I fund is the biggest waste of time. Too much risk and they lag the other funds a lot
If we’re investing in the tsp should we not worry about investing in an index fund through our brokerage? What if we plan on getting out?
Dude you do garage gym reviews right? Haha dope
Started my GS career in 2004 (after 5 years NAF no TSP allowed there) with the minimum to get the match. I currently have 50 g and 50 C with a balance of $425000, my goal is $650000, but unless I place it all on Red, (C) I might not get there? I won't touch it till I'm 65 in 4 yrs. so maybe, just maybe???? Then I will be happy at getting %8 a yr. I can live good on $50000+ in gains and not touch the principal. We have no debt; house is paid, and the wife makes $100000+ a yr. and is 12 years younger than me. (My mama didn't raise no dummy LOL….) The wild card is Inflation. It ain't going to be worth tomorrow what it is today if we keep spending our way into a Black Hole, which is where we are at. 33 Trillion and counting.
I made good decisions and bad as over the years trying to time the ups and downs. Not so good. Overall, I know I've lost money due to emotional knee jerk reaction to Business News experts. Slow and steady, but the fear of losing a huge chunk with 3 yrs. to go until retirement and the current disfunction in the World, Covid dejour, spending like drunken sailors, social civil war, can I afford not to Buy low and Sell high? Probable not, but How do you know when it's High and Low? No one does. I worked with a gal close to retirement in 08, she lost half and had to postpone retirement for 3 years just to get back some of her losses. Not me, I'm not watching $225000 go down the drain and have to keep working till I'm 70 F that!
Good luck, Remember when you're playing with house money, always keep cab fare home in your pocket.
So is the life cycle fund a bad idea?
I’m a big believer in a 80/20 split between the C and S funds. I stay away from I as well as G funds. As I approach retirement in 17 years, I’ll start to move those funds around a bit where I protect my tsp in the G fund and play it safe. But that 80/20 split has done me very well thus far! Also, when markets start to tank and the bears show up, stand strong and keep the faith. You will thank yourself later for doing so as you don’t lose money until you sell AND you are gaining more shares per dollar into these funds during times of recessions. Millionaires are made in recessions, be that guy.
NOTICE to warren b. Fan Boy his guidance has bee no below average for almost 20 years . Even worst he missed on the entire tech revolution. Stop living in the past
Usually saw forex and crypto trading as a side thing till I started making thousands of dollars from it, having an expert handle my account while I take care of my daily work has been the best part.
Please come back to YouTube, we need you!
Garage Gym Reviews is now giving me advice on my TSP!
Expense ratios have changed…
TSP C fund is now 0.051%
Vanguard VOO is 0.03%
TSP is better than a savings account, but Vanguards expense ratios are much lower.
Your math seems erroneous. Cost 0.038%. $10,000 would be $3.80, not $0.38
Holy Garage Gym Reviews?!?! WHAT.
Good VID!
Thought I was watching GarageGymReviews. How did I get here? lmao
I’m doing 90 C / 10 S for allocation and 100% L2040 contributions . Should put my contribution in 90c /10s as well ?
Coop from garage gym reviews?
The most important advice is to invest in the TSP period. Then use the lifecycle funds. Allocations between C S I and whatever are balanced for you every quarter to be more conservative as you approach your retirement year. Problem solved
C and s fund as it gives both Dow and S&P 500.
How often should we rebalance to deal with the drift in allocation?
When my youtube worlds collide! I came here for fed retirement planning not gym equipment!
Is this piggy?