Warren Buffet's TSP Advice

Рет қаралды 19,322

Күн бұрын

Пікірлер: 71

@chrys.w.8022 8 ай бұрын

Thank you for "8yrs" rule of thumb. It's another way for me to think about how to balance things out rather than just percentages.

@PlanYourFederalBenefits 7 ай бұрын

Thank you for your feedback!

@ETjim 8 ай бұрын

Retired after 36 years, 10-15% pp, 90 C/10 G. $950k in tsp. It's not that hard. Adjusted to 50/50 after retirement.

@PlanYourFederalBenefits 8 ай бұрын

Great to hear!

@chief5981 4 ай бұрын

Nice work man. Congrats

@markwhite6782 4 ай бұрын

34 years in the government, all in the G fund because I was afraid of market crashes. What an idiot I was. OBTW, I don't have 1/2 of what you do.

@kevinadams4310 2 ай бұрын

@@markwhite6782 OMG! You just made my stomach feel queasy.

@reaccionapuertorico Ай бұрын

@@markwhite6782I have a supervisor that’s he same age as me. I remember him telling me back 2014 that he was putting everything on G because the market is too crazy”. I told him not to and we never touched the subject again. Two weeks ago we were at a retirement seminar and he told me "I'm gonna have to the full 25 and maybe switch to a non covered position after that"

@christinemeers4858 8 ай бұрын

Nice to know I did as Buffett and didn’t know it. Most of my career of 28 years I did 90% c fund and 10% in g fund. Only after reaching my goal did I do 70 30. Same in retirement

@matsumoto9244 8 ай бұрын

It was a blood bath for the 90 /10 group in 2008 - 2009. It recovered later but still was a hard pill to swallow at the time.

@ETjim 8 ай бұрын

It sure was. I was on vacation in northern MN, with no phone/internet access, when the s&p took the biggest losses. I stuck with it, and by 2012 had recovered my losses. I learned my lesson and got out of C fund during covid, but got back in middle of 2020 and made huge gains ever since.

@tonyarmentanobass8576 8 ай бұрын

Retired CSRS 12 years ago. 65 years old. My TSP money is split 82% C, 10% G, and 8% bonds. I don't need it to live month to month, what should I be doing with it?

@andepau2 8 ай бұрын

Enjoying it?

@perfectlymprfct 8 ай бұрын

100% C is what we're doing at 58 and 57 with military retirements. Make sure you are traveling, giving, and paying someone else to clean and landscape, which preserves your joints. ❤

@nickjean-pierre9423 8 ай бұрын

@@perfectlymprfct😂

@sks7438 8 ай бұрын

Its simple when you have Warren's money. If my retirement date is near it would be too risky to do 90/10

@sammondaw 8 ай бұрын

I'd say impossible to do 90/20.

@killaswoll 8 ай бұрын

I plan to take 50k a year from the tsp as part of the 4% rule. There’s absolutely no way I’m locking $400000 in the G fund.

@BigJohnM 7 ай бұрын

Smart move!!

@KurtS-kx9iz 2 ай бұрын

Wow that means you have over a million in there

@CampsitePyro 8 ай бұрын

I am not touching my TSP until 75-and i am currently 80 C, 20 S

@hankdog7012 3 ай бұрын

I'm the same

@tomvt1704 23 күн бұрын

Why wait so long? You didn’t say if you’re male or female but why not live a little (travel, etc.)? Your body starts really aging fast at that age for most of us.

@hankdog7012 22 күн бұрын

@@tomvt1704 No I meant I have the same ratio of 80 20 I am taking mine when I retire at 57

@dawannwilliams6301 8 ай бұрын

The stock market will always have highs and lows it’s unpredictable. If people are afraid of losses they shouldn’t invest. 35 years in the mostly C fund and l have done great. Just wait to reach my MRA of 58 and l am retiring. Am also leaving 90 percent of my money in the C fund after retirement. I will gave a great pension and the supplemental payment so my TSP will be an added bonus.

@PlanYourFederalBenefits 7 ай бұрын

Congratulations! It sounds like you've had a great plan to prepare you for a happy retirement.

@robertreynard2916 21 күн бұрын

Apologize for ignorance, but I thought we couldn’t dictate which fund we could withdraw during a down market in retirement ( C vs. G). If I’m withdrawing, am I not taking from C fund when stocks are low?

@PlanYourFederalBenefits 20 күн бұрын

Great question. We have a couple videos on how to resolve that problem: kzbin.info/www/bejne/rYOkoKicopyefdk&ab_channel=HawsFederalAdvisors

@beb10 8 ай бұрын

Please help me to understand the 8 year hypothetical situation of needing the $10,000 per year in which I would pull from the G Fund. So in this case, would I need to to consistently keep $80,000 ($10,000 per year for 8 years) in the G Fund year after year no matter what the matter if the market was up or down the previous years? Also, which funds do I pull money out from in order to replenish the G Funds that I have been withdrawing the $10,000 per year and how often is that done? My worry is that I would be replenshing the G Fund from money where I may be selling C Fund in a down market or do I wait until C Funds stocks are in positive territory.

@joannebutzerin6448 8 ай бұрын

I don't think he meant for us to take 10K/year from the G fund, and we can't anyway, since all TSP withdrawals are proportionate to our designated distribution in the TSP. I think the 80K is sort of an emergency fund in case of a major, long-term downturn in the markets. It would be enough to survive for a couple of years in retirement and possibly have a basis to recover.

@asandrik3124 8 ай бұрын

Thank you

@BC-te9ow 8 ай бұрын

Wouldn’t withdrawals in retirement using the “8 year rule” still be withdrawn according to percentage allocations? Meaning if most of the balance is still say C with the remaining in G, most of your withdrawal will come from C which could be down. I was thinking the purpose of this rule would be to withdraw from G while C works and grows.

@brianb7991 8 ай бұрын

He addressed this not long ago. You can get around this by using your monthly moves to put the money that came from the C back in by moving it from the G to the C. I have never made a withdrawal so this is my guess: If your WD is coming on the 1st of the month you would want to calculate how much is coming out of the C on the day before and move that exact amount from the G to the C. It would be so much more helpful if TSP would let us pull from whichever fund we choose.

@BC-te9ow 8 ай бұрын

Makes sense. Thanks.

@markmurrell1894 8 ай бұрын

Can you withdraw from just the G fund in retirement or will it pull money based on how you have it allocated?

@jchang2572 8 ай бұрын

The second option. That's one of the things a lot of people don't like about TSP. But I thought I heard that they may be changing that "feature" in the future.

@vargas0033 8 ай бұрын

You can do both

@SpookyEng1 8 ай бұрын

You can leave the G in TSP and invest the rest in an IRA

@Redmeadow 8 ай бұрын

It will pull as per your allocation, the workaround is after you pull the money, replace the amount that was pulled from the C with funds from the G. After the transaction your C will be the same and the amount drawn came solely from the G. That's some alphabet soup but should make sense.

@sethcampbell5357 8 ай бұрын

Hi I’m 50 yrs old I’m doing 90% C and 10% S I maxed my tsp out at 10% I only been in the post office since 04/11/20 am I on the right track to be a tsp millionaire

@rottiek423 8 ай бұрын

Unfortunately there is no way to only take money out of the G fund.

@Lugnuts807 8 ай бұрын

Move it out when you retire

@yshouldifoogle6724 8 ай бұрын

Yea it would completely make sense if we could only pull from a chosen fund. This is the e worst feature about TSP

@mdherald7476 25 күн бұрын

Theres a big difference between my 10% and Warren Buffets LOL I could live very comfortably on his 10%

@SibongileBNLynch 8 ай бұрын

How can I learn what "G" and "F" funds are in the TSP, and the comparable funds I should look for in my private IRA?

@SpookyEng1 8 ай бұрын

There is no G fund equivalent. F fund is basically total or intermediate bonds.

@chrys.w.8022 8 ай бұрын

Go to the bottom of the login page (no need to login), select "Individual funds" under "Fund options. Click the G and the F box or whichever fund you are curiousabout. Look at the "Objective" row. It will tell you roughly what index it relates to in the real world. If you belong to a credit union, check with them to see if they have in-house investment advisors. They are low/no cost if you are adverse to spending money for an advisor.

@shawnnahass6886 8 ай бұрын

Maybe a money market fund is close SPAXX or Vmfxx since 1981 3.91 % return.

@shawnnahass6886 8 ай бұрын

F funds pick a total bond fund like vanguard etf “bnd” or index fund vbtlx “intermediate” bond . Schwab and fidelity will have similar

@SibongileBNLynch 8 ай бұрын

@@shawnnahass6886 Good to know, thanks!

@robinroberts2649 8 ай бұрын

So I have an annuity from Nationwide that I have yet to draw from. I take a little from my TSP monthly, along with my govt pension and social security. I think I made a mistake by leaving TSP alone and get money from my annuity instead. I’m thinking from this video I should change my plan and change my investments from the LFund to 50% into G and divide the rest between C and F ( maybe 30%/15%) and maybe small amount in S and I. Let it grow and take the annuity. I also have an IRA where I transferred some of my TSP. I ask my fiduciary about this as well.

@robinroberts2649 8 ай бұрын

Let me clarify, I started withdrawing from TSP to supplement my pension. But now that I get social security I think I should stop withdrawing from TSP and let it grow and withdraw from the annuity instead.

@adamwillford3040 8 ай бұрын

I’ve been in the G fund the last year.I’ve been waiting for stock market crash to go in.Is now a good time to go in? I’m not sure if the market is up or down? Thanks

@chrys.w.8022 8 ай бұрын

There are several ways you can use the information on the tsp page to get a rough idea how funds are performing. You don't even need to log in. At the bottom of the login page, select "Rates of return" under "Fund performance". Check the boxes of the funds you are interested in and you will see a very informative chart. If you are uncomfortable making decisions about how to choose funds for your age, Mr Haws has some excellent videos which would be worth your while go back and watch. You can also choose a Life cycle fund that most closely matches your retirement date or the date you will begin withdrawal and the tsp board will automatically adjust the fund to appropriate allocations. For example, although I am retired, I don't plan on withdrawal until 2028. I might pick 2025 or 2030. (I'm still happy to balance my own and don't use L funds. I also make use of my financial advisor for general advice on TSP while working with him on my investment account through the credit union. And I watch almost every video on this channel 😊)

@delbrett2257 8 ай бұрын

Every day you are not in stocks you are losing money, C fund made 26% in 2023 and still going up.

@chief5981 4 ай бұрын

Dude, switch to C funds and quit trying to time it

@shawnnahass6886 8 ай бұрын

Encourage to go all in buy and hold till death if it’s down …buy more . Don’t time market, best stock pickers (finance school grads) in the world lose to avg joe who buys and holds over long term 85 % of the time.

@adrianmurray6600 8 ай бұрын

Never put even a fime a dime in the I fund. Stupid low return on investment for a supposedly long term growth fund. Stick to C and S. Magic formula is 80% C, 20% S for most of your federal career, then for retirement 80% C, 10% S, and 10% G. That's the winning formula to retire as a millionaire in the government.

@chief5981 4 ай бұрын

What ms the point of 10% in g fund? I’m not getting that…

@adrianmurray6600 4 ай бұрын

@@chief5981 It's just to provide some stability to help offset the unstable (but potentially lucrative) S fund. Good insurance plan to help you through a recession.

@jFlowers598 8 ай бұрын

Doesn’t the L target retirement fund take care of this?

@joannebutzerin6448 8 ай бұрын

Some advisors (and Warren Buffett, apparently) seem to think the mix in the late-career L funds is not as likely to create wealth or beat inflation as a 90/10 C/G split. The late-career L funds are designed to minimize risk and preserve wealth. The early career L funds are more growth oriented, but still relatively conservative.

@wdeemarwdeemar8739 8 ай бұрын

The L fund is great but the fees are higher than doing it yourself. Also chose one way in the future like 2060