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Any Financial Advisors Out There?
me ^ | 14 Apr 2011 | hattend

Posted on 04/14/2011 1:10:14 PM PDT by hattend

I started a new government job last October (Sorry that I went to the dark side, but I have to work!)

I am participating in the Thrift Savings Plan and would like your opinion on which fund you would choose given the choice.

The choices are:

Government Securities Fixed Income Index Common Stock Index Small Cap Stock Index International Stock Index

I currently have 100% contribution going to Government Securities but that just scare the crap out of me with Obama in charge.

Which fund, in your opinion, would you consider the safest. I realize the tanking economy will affect all funds listed but would like to hear other FReepers' opinions.

Thanks


TOPICS: Business/Economy
KEYWORDS: finance; help; stocks
Post away...
1 posted on 04/14/2011 1:10:21 PM PDT by hattend
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To: hattend

The choices are:

Government Securities
Fixed Income Index
Common Stock Index
Small Cap Stock Index
International Stock Index


2 posted on 04/14/2011 1:11:25 PM PDT by hattend (Obama got his 3am call about Egypt. The call went right to the answering machine.- Sarah Palin)
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To: hattend

Personally, I’d go with 100% in the International Stock Index fund.

Like Pimco, I’ve come to the conclusion that investing in US government treasuries is foolhardy, and investing in anything denominated in US dollar is nearly as bad.

Given the course that our country is taking, I think it’s important to get wealth out of dollars.


3 posted on 04/14/2011 1:13:16 PM PDT by Yet_Again
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To: hattend
Forget "Deficit Reduction"--We Need Debt Reduction!

If you are in DC, no. At least none that you'd ever want to use unless bankruptcy is your goal.

4 posted on 04/14/2011 1:14:44 PM PDT by The Sons of Liberty (Psalm 109:8 Let his days be few and let another take his office. - Mene, Mene, Tekel, Upharsin)
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To: hattend

Get the Cash and invest it in Mattress Savings and Loan.


5 posted on 04/14/2011 1:16:39 PM PDT by screaminsunshine (Shut up and eat your Beans!)
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To: hattend

I would take a certain amount each month out of the Gummint Securities and dollar cost average into the 2 domestic stock funds and the international fund.


6 posted on 04/14/2011 1:16:42 PM PDT by beethovenfan (If Islam is the solution, the "problem" must be freedom.)
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To: hattend

Gov’t securities and Fixed income will be made up entirely or partly of FED and MUNI bonds. Although I think the scare over MUNI’s recently is overdone, nonetheless, what upside is there? Interest rates are at historical lows. Yes, we may bounce along the bottom with years of low rates (like Japan), but what’s the point of locking in crappy interest rates? With the fees the fund manager might charge, you may not have any upside at all, but a lot of potential downside.

I would prefer international stocks (some diversity to US markets) or small cap stock funds, given the limited choice you have.


7 posted on 04/14/2011 1:18:40 PM PDT by PGR88 (I'm so open-minded my brains fell out)
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To: hattend

Forget the Government Securities and Fixed Income Index.

Split the money among the remaining three ?


8 posted on 04/14/2011 1:19:50 PM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: hattend

Any free advice you get is worth what you pay for it.


9 posted on 04/14/2011 1:20:13 PM PDT by Daveinyork
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To: hattend

I would get out of all Government Securities (I am assuming they are Treasury Notes) and distribute between the other 4 choices - not evenly across the other 4, you have to do it based on your age & years to retirement.

Bill Gross, who runs one of the biggest mutual funds has sold all of his Government Securities.


10 posted on 04/14/2011 1:25:06 PM PDT by PMAS
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To: Daveinyork

Oh, I know that, Daveinyork.

Just interested in others opinions of what’s available.

Will I take action based on this thread? Who knows?


11 posted on 04/14/2011 1:27:26 PM PDT by hattend (Obama got his 3am call about Egypt. The call went right to the answering machine.- Sarah Palin)
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To: hattend

Buy Libyan Rebel War Bonds


12 posted on 04/14/2011 1:31:35 PM PDT by bunkerhill7
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To: hattend

BTW: I am working for the National Weather Service in the Alaska bush.

The only connection I have to DC is my Dept of Commerce paycheck.


13 posted on 04/14/2011 1:32:30 PM PDT by hattend (Obama got his 3am call about Egypt. The call went right to the answering machine.- Sarah Palin)
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To: bunkerhill7

Are they for sale? ;-)


14 posted on 04/14/2011 1:33:18 PM PDT by hattend (Obama got his 3am call about Egypt. The call went right to the answering machine.- Sarah Palin)
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To: screaminsunshine
Get the Cash and invest it in Mattress Savings and Loan.

Well, I can't "get the cash" until I have been working 3 years (vested) or until I quit/get laid off.

My only option right now is to work within the system so I only have the 5 choices.

15 posted on 04/14/2011 1:37:42 PM PDT by hattend (Obama got his 3am call about Egypt. The call went right to the answering machine.- Sarah Palin)
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To: hattend

If you are putting your money in government securities don’t expect much growth from capital appreciation. Bonds can only go down from here in value since interest rates are extremely low. Market values of bonds are inversely associated with interest rates.

HOWEVER, that being true if you are intending to work a long time for the government that will not affect you that much over the long run since the interest will compound without taxes.

Most financial theory indicates you should diversify your holdings so perhaps you should consider splitting your contributions with a couple of more choices.

That is conditioned on how long you anticipate before retirement and the longer that period is means you would profit from weighting toward the more speculative investments.

My buddy just retired from the feds and he did extremely well by investing heavily in the standard and poor’s index funds even after the market collapse after 911 and 2008.


16 posted on 04/14/2011 1:41:51 PM PDT by arrogantsob
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To: hattend

It’s a difficult investment environment.


17 posted on 04/14/2011 1:44:28 PM PDT by Daveinyork
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To: hattend

I like them in the reverse of the order in which they are listed.


18 posted on 04/14/2011 1:57:29 PM PDT by Uncle Miltie (0bamanomics: Trickle Up Poverty.)
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To: arrogantsob

I’m putting everything in Gov’t Secs now because that is the “default” starting position when the account is started.

But, now that it is established, I can move it around into the 5 choices given.

Thanks for the input!


19 posted on 04/14/2011 2:10:57 PM PDT by hattend (Obama got his 3am call about Egypt. The call went right to the answering machine.- Sarah Palin)
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To: hattend

My financial advice is to get a financial adviser. Web forums are not a good source.

That being said, you could do a lot worse than FR.


20 posted on 04/14/2011 2:28:56 PM PDT by Retired Greyhound
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To: hattend

You should also have an L-fund, based on your target retirement date. So, if you’re 10 years from now you choose the L-2020 fund. If you’re 20 years from retirement, you choose the L-2030 fund. Etc. That fund is fully diversified across all the different asset classes. That’s really the best choice for the long run.


21 posted on 04/14/2011 2:29:24 PM PDT by Choose Ye This Day ("As government expands, liberty contracts." -- Ronald Reagan)
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To: hattend

Good luck to you.

I was trained in Economics and was a financial analyst for almost thirty years so I do know a little about this.


22 posted on 04/14/2011 2:29:39 PM PDT by arrogantsob
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To: hattend

Buy low, sell high.


23 posted on 04/14/2011 2:29:39 PM PDT by dfwgator
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To: hattend

Buy a good, well-managed stock mutual fund that goes up.
If it doesn’t go up, don’t buy it.


24 posted on 04/14/2011 2:33:04 PM PDT by Snardius
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To: Choose Ye This Day

Thanks!

I do have those choices as well. I have not been given “Permission” from my wife to stay past 2 to 3 years, let alone 10-20-30 years or longer. So I am not sure if I will be staying in NWS.

But thanks for the reminder of those funds as well.


25 posted on 04/14/2011 2:44:46 PM PDT by hattend (Obama got his 3am call about Egypt. The call went right to the answering machine.- Sarah Palin)
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To: Snardius

I’ll fire up the time machine and get back to you...LOL!!


26 posted on 04/14/2011 3:16:14 PM PDT by hattend (Obama got his 3am call about Egypt. The call went right to the answering machine.- Sarah Palin)
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To: hattend

No licensed financial adviser is going to give you an opinion on an Internet chat board. You will get opinions, but they will be free anonymous opinions on an Internet chat board. How much are they worth?


27 posted on 04/14/2011 3:20:52 PM PDT by steve86 (Acerbic by nature, not nurture (Could be worst in 40 years))
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To: hattend

Get out of the Government Securities and do not invest in the Fixed income index. Depending on your tolerance for risk and fluctuations in your investments the other three are your best options. Over a long period of time ( >7 years) a well managed small cap should outperform a Common Stock index but will be more volatile.


28 posted on 04/14/2011 3:29:28 PM PDT by Timocrat (Ingnorantia non excusat)
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To: steve86

I understand that.

The advice is worth what I paid... I get that.

I had an idea of what I want to do. I’d just like to bounce if off the old sounding board.


29 posted on 04/14/2011 3:30:43 PM PDT by hattend (Obama got his 3am call about Egypt. The call went right to the answering machine.- Sarah Palin)
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