Top 5 TSP No No's You Need to Avoid

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[@geebeeinga]

Early in my career, had a senior office worker sit me down and tell me the same thing - invest big and forget about it. Just retired after 30 yrs - 7 figures. Boom!

[@roseystroup]

I did the same mistake for 5 years I didn't do anything to my TSP I had all on the G fund until an officer told me. Gotta make a change and I did I was so dumb. I didn't know what to do

[@ivanlugo9960]

Big no-no is to never borrow against TSP. That 0% interest rate is a lie.

[@midgehughes1135]

Not true - With proof. And no one said it was zero percent interest. For example: TSP loan at the top of the bull @ 1.5 to pay off a house @2.5. Absolute and total win win. So see, the truth is “ watch out for those advice givers who say ‘don’t ever do this/do this every time’”. As always, it depends.

[@ivanlugo9960]

@@midgehughes1135 that makes it an even worse choice. Not only paying the interest plus fees but also missing out on the opportunity cost of that money. Once you take out a loan that money is not invested anymore and is not growing. Much more expensive than people realize. Long term money should never be used for short term needs, hence the no-no.

[@jchang2572]

In my career, I took out 2 loans. Both were taken when interest rates were below 3%. Therefore the opportunity cost were minimal. Luckily I paid back the loan in time to take advantage of rise in the stock market. Tsp loans are just another tool afforded to Federal employees. Run the numbers for you to see if it makes sense.

[@conner1354]

What I have been doing is raising my TSP contribution amount to equal the percentage of the COLA increase each year.

[@kianatimmons8860]

Unfortunately I wasnt made aware about how to save in my TSP back in the day. So now with only 12 years left I hope that I can have a decent amount when I retire so that I wont have to get another job after retirement....smh....

[@ThePoisonedReaper]

Is 80 percent C Fund and 20 Percent S Fund good?

[@kimberlycarter6974]

Great advice. What should we look for with the mutual funds

[@Just_Stevo]

He reccomends not using to portal.

[@kevinclark1482]

Fees 👀

[@aaront936]

The mutual fund window is a fee riddled mistake. Stay away from it.

[@nyy190343]

Pick the right funds & the fees won’t matter! Mine yielded a 15% return in 2023

[@toddw6716]

You must pay attention to what’s going on. Each fund has it place. Right now the G fund is king but that won’t last forever. Unless you get 7% and already have a big balance.

[@Ricardo_Veteran]

If G fund is the worst against inflation and other L funds are in the NEGATIVE, so what is the solution to not lose money?

[@redcloud5813]

Invest everything in the C fund until you're 10 years from retirement, then diversify by putting 20% in each fund. Keep contributing all your "new'' money into the C fund, but every month, or at least quarterly, rebalance all the funds to 20% each. Basically works out to a 60/40 stocks to bonds ratio which is what most financial advisors recommend near retirement.

[@rogerdoger9939]

@@redcloud5813 I wouldn't say "putting 20% in each fund (G, F, C, S, I)". I would always skip the International fund.

[@redcloud5813]

@@rogerdoger9939 it's your money, invest however you like.

[@TD-eg7lr]

I move my money quite often as S100% or C 100% or G 100%. Each year my return is more than each individual fund. I believe that’s the way to earn money quickly

[@Ricardo_Veteran]

I have L2030 I have been losing money since 2021, what is the magic fund do you advise to put money in the fund where there are no losses?

[@rogerdoger9939]

How many years until you want to retire?

[@DrStfuFool]

My L2050 has been pretty consistent at 7% increase 🤷‍♂️ I don’t know shit though.

[@Tkh21209]

Do you have any content on beung5 vested on TSP...prior 4 year active duty military time. From 2010 to 2014 and I feel like I am not getting my 5 percent match

[@PlanYourFederalBenefits]

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

[@rogerdoger9939]

Unfortunately the new website makes this information hard to find. But you can see the total agency matching contributions. So you have to compare the $ from different dates to see if it changes.

[@alrocky]

@ *T K* were you US military or civilian FERS employee from 2010 to 2014? BRS & 5% match effective 2018.

[@Mc.flyyy11]

90% C, 5% S, AND 5% I FOR 30 YEARS and dont look at it. That's my watercooler advice. Lol. If you only invest in the g fund you lose out over a career of investing...by a lot

[@PJBHolden]

Skip the I fund

[@doncappo1509]

What about 50 /50 c/s

[@Laura-nx4dm]

How's that working for you in 2022?

[@doncappo1509]

It’s a fire sale right now

[@rogerdoger9939]

@@PJBHolden agree.

[@danieljustdaniel9550]

I'm retired now so with the market down like it has been these days is not the G fund safer?

[@AstrumVerith]

Short term yes, long term no. These videos are mostly focused in long term investments.

[@alkaliwreck2474]

Yes, it is the most stable and ideal at retirement. But if you spend 30yrs only investing in the G fund, like I've seen some KZbin "advisors" say, you'll lose massive growth potential.

[@rogerdoger9939]

If you are not in the G fund, I would not move money from the C/S/I fund now. Stock may continue to fall, I predict so, but they will bounce back. It may take 12-36 months to get back to the previous highs. Or, it might take 7-12 months.

[@g2u499]

Thanks for all the input. I retired 2 yrs ago and not contributing anymore.. last few month i loss 40k so now what is the best mix in allocating my money. Pls help!!

[@scottgold1054]

Yep who knows we could get fukked for a while all take the g fund for a long while.

[@reidloscidem3562]

The only way to get your money back is either using your IFT and buy low, sell high, or wait a few years. The stock market is going to be bearish for a while.

[@mikek2218]

I've been 100% G fund since January 1st, and boy am I glad I did that. I saw all of the screaming red flags and warning signs of the fall coming. If I had stayed in C and S I'd be down 120K instead of being up 10K. That is what the G fund is for... to park your money when you see a down-turn coming. I just wish I had put it all in the G fund two months sooner. I'm very happy to have had my money vacationing in the G fund for the past 9 months, and will look to take it out when the S&P500 gets down to around 3200 or when other indicators show the bottom is near. I could be wrong, (I have been before), and of course, your mileage may vary and this is NOT advice.

[@scottgold1054]

Yep I am 90 percent g fund now and I sleep pretty well this year

[@scottgold1054]

My prediction stagflation for the next who knows how many years because of fake money printing for the last 12 years

[@aaront936]

Hope you don't miss the boat on the way back up.

[@mikek2218]

@@aaront936 Always a risk for sure. You've got to guess right twice. I'm halfway there 🙂 I think it was pretty easy to see the down-turn coming, but I'm not so sure it will be as easy to see where the bottom is.

[@pennguino9137]

Great luck and timing. Congrats. I was down about 12%. Did a few swing trades and broke even again. Then I pushed my luck and dropped back to 10% down. I missed/stayed out of the summer rally. Trying to be risk adversed (close to retirement). At least I am not over 20% down!

[@Laura-nx4dm]

Started doing seasonal investing a few years back and man those were some *great* years... I've been in G-Fund since Jan 2022 (wish I had moved sooner). No way did I think this much damage could be done in such a short time. I'm too close to retirement to play it fast & loose. Hope to time it right moving back to C/S/I.

[@astridgarcia2684]

Regarding No-No #5.....what if I am already retired but don't plan on touching my TSP just yet. Maybe in two years. Shouldn't I monitor it almost daily especially in these uncertain times?

[@Just_Stevo]

TSP funds settle at the end of the trading day. So, what you see in your account is a day behind and you can't know what they will close at. Daily monitoring is useless.

[@astridgarcia2684]

@@Just_Stevo daily monitoring is just an expression...i actually meant if I should monitor it often since I am already retired and not touching it yet.

[@astridgarcia2684]

that's why I said almost daily

[@geebeeinga]

Same situation here. Retired, won’t be touching it for a few years. Locked it down about a year ago into G. Had I kept it where it previously was I would have lost 100k! While I don’t monitor it daily, or almost daily, I’m waiting for some political and monetary sanity to creep back into the ‘system’ before I even think about redistribution. Yes, I know that inflation is eating into the pot but I no longer have the stomach for those types of losses.

[@astridgarcia2684]

@@geebeeinga I wish I would have done the same. I lost a lot. Just recently moved the remaining to G.

[@wandrastone]

I’m 71, I don’t know how much I need to take out by 72. I’m so confused with this TSP. I’ll be taxed so badly. Just loss

[@PlanYourFederalBenefits]

Feel free to submit your question here: app.hawsfederaladvisors.com/question-submission

[@rogerdoger9939]

The TSP will figure out what your Required Minimum Distribution is. If you have money in a traditional IRA, you may need to contact them to see what needs to be done.

[@wandrastone]

@@rogerdoger9939 Thank you so much. I’ll give them a call

[@sherrryann]

Yes, I know an idiot who after 12 yrs of service was defaulted at & stuck in a 1% contribution election 100% to the G fund. Meanwhile all his coworkers had TSP balances of $100K-$200K... -I said well here's a mirror to show you whose fault it is, & just walked away... -because he was stubborn, thought he knew it all, highly financially illiterate & ignorant, & had a selfish scarcity mindset of this is my paycheck for me today right now, wanting to hoard cash in the bank. & half way to retirement is not the time to just be realizing the gravity of what you've done & to try & play catch up, but oh well... -Some people are just a problem... -They don't listen... -Even after being told by everyone & their mother... -You can lead a horse to water but you can't make em drink.

[@RobertJToledo]

What about TSP loans??? I thought that'd be in here. I always thought that was a no, no.

[@reidloscidem3562]

Because it's not. If a loan now gets you financially stable today, you'll be able to invest more. Now loans are at 3%. Miss the days of 1% interest.

[@jennifergottliebel-azhari149]

Loans are awesome id rather pay myself back w interest than pay someone else for something I need

[@RobertJToledo]

@@jennifergottliebel-azhari149 I get that but you more than likely are gonna lose money in potential market growth. Especially if your in an aggressive fund like the C fund. Historically it grows at 10.73% since its inception in 1988. Current TSP loan rate is 2.88%.

[@jennifergottliebel-azhari149]

@@RobertJToledo there are certain things that need to be done. I also left c fund since covid. I understand all the advice but personally I can't risk my retirement in the market

[@RobertJToledo]

@@reidloscidem3562 I get that but you more than likely are gonna lose money in potential market growth. Especially if your in an aggressive fund like the C fund. Historically it grows at 10.73% since its inception in 1988. Current TSP loan rate is 2.88%.

[@stephenlozano2816]

I wish I knew about this channel a lot sooner…… I also wish I never met my ex wife……….

[@user-kj1yd6sc9e]

Sorry about ur ex wife man.

[@commonsenseisntcommon1776]

Biden??

[@scottgold1054]

Good luck stagflation is coming and returns will be very slim for the next decade like the 1970s just my prediction.

[@reidloscidem3562]

Yep. Perfect time to buy low and sell high. That's what I've been doing for the S.

[@pennguino9137]

Friends don't let friends buy and hold. Swing trading may be the only way to make up money lost this year. It is definitely one way to lose even more though...lol

[@mickeydrago9401]

S Fund til death! (just kidding 😘)

[@stevem-zk6ki]

c and s 50/50. drop 10% in s and 90% c at 55

[@reidloscidem3562]

S fund is the best! Bought low at 60, sold at 70. Now it's in the 60s again. Go make that 💰!

[@mickeydrago9401]

@@reidloscidem3562 I'm too close to retirement to play those games, But years ago as I was in and out of the international fund for right around a year and locked in over 22% profit, pretty much just looked at the price to earnings ratio... Been pretty boring with most everything in g fund lately... Put $40,000 in the f fund because I figured bonds have taken most of their beating