Q. Isn’t the S Fund based on the Dow Jones U.S. Completion? According to the Thrift Savings Plan website, it mirrors the DJ U.S. Completion. Yet, on Sept. 30, the S Fund only decreased from 31.0512 to 31.0038. Why such a small drop in S Fund? The S Fund that mirrors the Dow Jones U.S. Completion was down -3.55 (-0.38 percent) on Sept. 30, the day before the government shutdown. A. You’re confused and comparing one index to another. On Sept. 27, the Dow Jones U.S. Completion Total Stock Market Index closed at 924.37. On Sept. 30, 2013, it closed at 922.99…
Browsing: S Fund
Q. I’m retired from the military after 28 years. I have been working for the Defense Department since March 2008 and have 17 percent going into the Thrift Savings Plan. As of right now, I have 71 percent in the C Fund and 29 percent going into the S Fund. Should I leave the contributions where they are during the government shutdown? I have friends advising me to move 70 percent to the F Fund and 30 percent to the G Fund. Not sure if that is the right move. A. Neither of these asset allocations is remotely risk efficient.…
Q. The Dow Jones was down on Sept. 30 by 128.57 points, yet the S Fund only decreased from 31.0512 to 31.0038. Why such a small drop in S Fund? I called the Thrift Savings Plan and no good answers. A. Because the S Fund isn’t the Dow Jones Industrial Average. Different markets often do different things at the same time.
Q. I’ve been in the government for four years (retired Army) and have invested in the Thrift Savings Plan since 2009. I plan to retire from the government in 2020 with 11 years of service (I’ll be 58). My TSP portfolio is diversified but certainly heavy in the C and S funds. To avoid the losses all experienced several years ago, what are the recommended allocation moves, within funds, that one should take during what appears to be a stock market selloff that has started in August? A. Unless you plan to withdraw and spend all of your money within the next few…
Q. I turned 70 years old in July and have been a CSRS retiree since 1997. I started the required minimum distributions in September 2012 from the Thrift Savings Plan and an IRA with DWS Scudder. Monies were invested in the G Fund with TSP and the DWS GNMA S Fund, which are very low risk. Before retirement, I felt more comfortable taking risk. I started withdrawing RMD only because I had to avoid penalty. My main concern at this stage in my life is to face as little risk as possible and to at least maintain my balance with minimum losses. My IRA…
Q. I had the same concerns as the person who you answered Aug. 8. He is trying to follow a bucket strategy and not sell off equities in a down market. I think there is a way to do this in the Thrift Savings Plan, but it is more complicated than I like. Suppose you have $400,000 invested equally in G, C, S and I. Assume your required minimum distribution is $12,000 or $1,000/month and it is paid on the first of each month. On the last day of the month, before 1200 Eastern time, transfer $300,000 to the G Fund. Money transfers…
Q. I have eight years and nine months of government service and had my entire Thrift Savings Plan contribution in the G Fund until about two weeks ago. I had around $50,000, and I moved that $50,000 into 40 percent C Fund, 40 percent S Fund and 20 percent I Fund, and moved my contribution from 100 percent G Fund to 50 percent S and 50 percent I. I am 34 and have probably 25 to 30 years of service left. How would you rate my contribution move? A. To rate it, I’d have to clearly understand your goals for the money…
Q. I understand why you defend leaving your money in the Thrift Savings Plan because of low expenses, security, protection from lawsuits, etc. However, how do you address the issue of “locking in losses” when withdrawing money in retirement from the TSP? For example, in an IRA, I can have (for a basic portfolio) a cash fund, an income fund and an equities fund. I know I can do this in the TSP, as well, G/F/C or S, but the primary difference is when I go to withdraw my money, in the TSP it comes out of all of these…
Q. I am 39. I contribute 12 percent of my salary to the Thrift Savings Plan. I have 50 percent in the L Fund and 10 percent each in G, I, S, C and F. I plan to retire around 62. Is this a reasonable contribution distribution? A. On its own, it’s not risk-efficient. If you don’t have a good reason to use this allocation, then it’s not reasonable.
Q. I am 31 years old and have five years of federal service. I am a GS-12, Step 3. I contribute 7 percent to the Thrift Savings Plan but have not done anything with the allocation: 100 percent to the G Fund. I have tried to determine the best allocation on my own, but there is too much information out there. I know that I need to do something now. I was thinking about 40 percent C Fund, 30 percent S Fund, 15 percent I Fund, 10 percent F Fund and 5 percent G Fund. Would this be a good start to set…