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.