Q: I am an active-duty soldier participating in the Thrift Savings Plan. I do not get a matching contribution. My money is invested in the S and I Funds, and this week I have lost $4,000. My investment had been exclusively in the G Fund, and my account was slowly growing. When I switched money in February from the G Fund to the I Fund, I began to make more money. I want to switch back to the G Fund for stability but am afraid that since the share prices are lower, the value of my account will drop because of the difference in share price between the funds. I only have two years before retirement.
A: The difference in share price, on its own, will not result in a loss if you switch from one fund to another. Your attempts to time the markets are a poor bet, however.
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I have almost 12000.00 diversified in the TSP as follows: S 25%, C 25% and F 50%. I would Like to place more in the S and I funds but the current shares are at 19.63 “roughly”. Should I put more in the S and I funds now or wait until the share prices drop to a range of 14-17 per share? Any suggestions will be greatly appreciated.