TSP - another jump to the "G"

Disclaimer: This is not investment advice! It's my own personal-yet-public track of TSP moves so I can look back a few years from now and get the answer to the "What on earth was I thinking when I did that?" question.

The last time I did a jump from the "C" to the "G", my timing was bad, bad bad. It was during the bottom of the crash, but of course, nobody really knew when we hit the bottom. Well, that time, it was okay, because I got back into the "C" once the markets stabilized.

So now it's May 2010 instead of the tail of 2008, and the market is starting to take a slide. Contributing factors to the slide include the near-collapse of Greece's economy, and the oil spill in the Gulf of Mexico. Of course, our nation having a jobless rate at about 10% doesn't help either.

For reference, here is a list of historical prices for the DJIA at May 7, 2010, the date my request to transfer from "C" to "G" took place. You'll see the dates prior, too. Market was at 11,000 and above through April, but took a dive. So I figured it was time to wait a bit. Of course now, a week later on May 14th, 2010, the market has rebounded to 10,620. Argh. Maybe I should have stayed in? Eh, hard to say. I can only do two moves per calendar month, so I'm loathe to dive back in while things look unstable; I'd rather wait til' the end of the month when I could make a move, then cross over into June and do a couple moves there too if needed. Ah, there just ain't no crystal ball, is there? Nope. Only time will tell if this move was another case of bad timing or if it was foresight of an impending collapse.

DJIA is over 7000, but how far back in?

Well, barely a week ago I took 100% of my TSP money and stuffed it all into the "G" fund. I said I'd go back in if the DJIA went over 7000. Today it's there, a tad over the 7000 mark. Okay, I said I'd go back in, but how much? I'm looking at the different funds to invest in in the TSP, and have decided on the following strategy (Jesus have mercy, please.) I'm starting out going into the L Income fund for now as the DJIA climbs just over 7000. If it can hold that to say, 7250, I'll ramp it to the L2010. And if the DJIA continues to hold, I'll move from the L2010 to the L2020, the L2030, and the L2040.

It's not a brave strategy, it's more of a "show me the market isn't dead and I'll go back in" strategy. Again, God, if you were speaking to me through that warning in Ezekiel, have mercy on me.

TSP - out of the "G" ?

I feel it was a sign from God to move my TSP retirement money out of the stock market and into the government securities "G" fund. I said to myself, if the Dow goes over 7000, I'll go back into the market. Well, today the Dow is at what, 6940? It's pretty close.

So the dilemma: Did God really give me a sign? How do I know? Time will certainly make it clear, but being wrong could be costly, literally. I suppose more prayer is needed. Yep. If the Dow does rise over 7000, I'll be pretty surprised, as I'm expecting profit takers to eat away recent gains, but we'll see. Lord, what should I do?

Moving to the "G"

For the record, this morning the dow is at 6570.

Like most folks with a retirement fund, I've watched the value of mine deflate like a tire with a nail in it. A big nail. Since I get paid by Uncle Sam, my retirement savings in in what's called the TSP, the Thrift Savings Plan. You can allocate your savings between different funds. Most funds are different stock-based funds. There is also a bond fund, and the ultimate in slow performers, the "G" fund, or the Government Securities fund. The G never loses money, but it rarely makes any either. 3% is big for the G.

I don't like messing with my TSP account distribution too much, and in fact, have avoided doing so ever since the market started to slide. I prayed about it a bit, but mostly just pondered the issue in my heart. I got up this morning intending to move my money into the "G", but first started reading the word. I popped open my Bible to read, and it ended up opening up here:

Ezekiel 12:3
Therefore, thou son of man, prepare thee stuff for removing, and remove by day in their sight; and thou shalt remove from thy place to another place in their sight: it may be they will consider, though they [be] a rebellious house.

So, I marked down where the Dow is at, at the top of this message, and for now have moved my TSP account all into the "G". If the Dow starts going back up over 7000, I'll consider putting it back into the market. I am totally aware of the potential to basically "lock in my losses" with this move, but I do feel it is divinely inspired. This is not me telling people to get out of the market. Nope. I'm just saying I feel I've got God's confirmation on this particular move for me. Time will tell.

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