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jlong105 November 6th, 2017 4:57pm

My Personal Investment Performance for my TSP (401k) over the last 12 months has been 9.89%. This is the best I have seen it. Does this sound good? The TSP is the government’s 401k. If anyone has any specific advice I would welcome it.

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fmm Philadelphia suburb
11/06/17 9:59 pm

too limited info - S&P 500 is up 18.6% over prior 12 months - but if you’re close to retirement you’d be invested more conservatively and that would be the wrong index to compare.

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mstt
11/06/17 7:23 pm

My 10 month return in just growth stocks is 36 percent.

Zod Above Pugetropolis
11/06/17 4:36 pm

It’s good, but it’s not as good as it could be, unless you are close to retirement. Think more C and S funds, and less of anything else (and very little G-fund, which has been flat for years). The L-funds are very conservative, and even more so as you approach their target year. That's fine, especially if you don’t have a lot of other retirement income mapped out, or if you are very risk-averse, just realize that those funds don’t allow for much growth as you get closer to retirement. At the very minimum, if you are using one of those funds for a substantial part of your balance, pick them based on when you expect to need to start drawing them down, not when you plan to retire. For a comparison of the funds' performance, be sure to check out the summary of returns on the TSP site.

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jlong105 Indiana
11/06/17 7:04 pm

Will check that out. Thanks for the input.

Zod Above Pugetropolis
11/06/17 7:13 pm

Here's a shortcut into the summary of returns, but there is a whole lot more on the site to take a look at:

www.tsp.gov/InvestmentFunds/FundPerformance/returnSummary.html

sea California
11/06/17 2:52 pm

Unless you near retirement I would say not good. Your portfolio is probably fairly conservative. I would consider going more equities and less bonds/stable funds if you have a while before retirement.

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jlong105 Indiana
11/06/17 7:05 pm

Still have a while. I am just starting to look how to make it grow. Thanks for the advice.

FarmerManE djent
11/06/17 1:13 pm

We've had really strong growth this year in the market. Its only going to last for so long. But keep your money in the plan

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jlong105 Indiana
11/06/17 7:06 pm

I plan to. Just want to maximize the potential as I have about 20 years to grow it.

mstt
11/06/17 7:21 pm

With that much time get out of bonds and other fixed income and get into stocks.

asia
11/06/17 12:23 pm

My tsp was up 13.6%. Mind you 60+% of mine is in the life cycle 2030 fund.

Squidboy Snarkapottamus
11/06/17 11:05 am

I’m not in a TSP....but that’s a pretty conservative return this year. Just about any index fund has provided a double digit return. Last time I looked, my IRAs (the bulk of my retirement assets) were up 14% ytd. In fact....the increase in my assets this year will outpace my earned income for the first time ever. And I have a hefty income.
Historically though....this is good. Over time, you can expect a 6-7% return on an equity based investment like that. I’ve had years that we’re far better 1999) and far worse (2008).
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rons on top of the world MA
11/06/17 11:23 am

Sound somewhat conservation for the last couple of years. Generally the return is a little higher. Mine is like Squids. I was 18%, 14 and 10% depending on my broker. I guess the key is risk vs reward. Check to see the percentage of stocks vs bond. I you have a lot in bond then move some to stocks. A balanced portfolio doesn’t mean 50/50 stocks and bonds. A lot has to do with sectors, types of stock, long or short term bonds, metals, and government security. Good luck. Nice going Squidboy!

Squidboy Snarkapottamus
11/06/17 11:34 am

Ok....this got me curious do I looked it up. My IRA has been with the same people since 2011. My average since then has been 12.7%....that is extraordinary in itself. I’m in 4 different index funds, they range from 16 to an insane 29% ytd return. Nice while it lasts.....but it’s going to hurt when it pops.
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rons on top of the world MA
11/06/17 11:47 am

Squid, that’s one heck of a nice job they are doing for you. Index funds were the place to be but you had to have a of faith that the market would go nuts. I was pretty much conservative because we were concerned about losing our principle. Hell, I retire 20 years ago at 55 without a nice pension. I had medical. But when the feds dropped the interest rates to nothing and starting printing money then the only place to go was the Markets. But nobody expected this!
You have to plan life hoping as you grow older you’ll have a nest egg. Thru the years I’ve hit a 10 Anniversary birthday. Each decade you looked at life a little differently. Somewhere along the line you start thinking about the future. It came fast.

Squidboy Snarkapottamus
11/06/17 12:11 pm

@rons I’m still at least 10 years from retirement so I can take the risk. In fact...I needed the risk if I ever had any hope of a decent retirement. I saw the sub prime bubble popping ahead of time in 2008 and switched to bonds....minimizing my losses. I also stopped monthly contributions for the second half of 08. I caught up on contributions in 12-08....and doubled down in 2009 when the market was at bottom. I flipped back to index funds then too. I normally don’t time the market....but both moves paid off handsomely. I’ve been staying the course since then. I’m fully expecting a big correction of 30% or more within in the next 18 months. So I’m going to try to stay a step ahead like I did last time. Until then, I’m enjoying the ride. These are heady numbers. I ‘made’ $2,500 yesterday. It’s mind boggling.
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rons on top of the world MA
11/06/17 2:23 pm

I can gain or lose 5-8 grand on any give day. But like you I’m waiting for a shoe to drop. From 1998 on my portfolio looks like the Alps!

Squidboy Snarkapottamus
11/06/17 2:33 pm

Yeah.....some crazy highs and lows over that period

jlong105 Indiana
11/06/17 7:12 pm

Damn. I have about 17-20 more years on the civilian side, so I am just trying to maximize the potential. I did not contribute like I should have to my military TSP, so it is going to be a pittance compared to what I am hoping for on the civilian side.

I will also have military retirement pay @ 55. Between this my government TSP and pension I hope to live comfortably. If SS is still there I want it to be a bonus, not necessity.

Squidboy Snarkapottamus
11/06/17 9:07 pm

Don’t disregard that military pension, it’s not a lot but it has value. When I was 30.....my net worth was probably about $20k. Since that point I’ve been steady, brave and disciplined in my saving until it hurt. It helps big time that I’ve had a high income the last 15 years. The tipping point is when your investments start making more each month than you are putting in. I’m at that point most months now.....then it turns into a snowball of wealth. 20 years later....my net worth is 7 figures.
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mstt
11/06/17 9:50 pm

An annual 10% is 10% of a greater and greater number every year

rons on top of the world MA
11/07/17 6:22 am

I doubled up savings the last 10 years. Kids were gone, mortgage paid, no loans.

mstt
11/06/17 10:08 am

An S&P 500 fund is up about 14% this year and individual stocks are up much more.

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