How much do you need to save for retirement? A lot. But a bit of good news for federal employees is that they also have a traditional pension component that will help. Are you on track with these guidelines? http://www.investopedia.com/articles/personal-finance/010616/whats-average-401k-balance-age.asp
A good summary of why you can’t just rely on buy and hold investing strategies over the coming decades: https://realinvestmentadvice.com/retirees-may-have-a-spend-down-problem/
95% of financial professionals can’t beat the index’s: http://www.aei.org/publication/more-evidence-that-its-very-hard-to-beat-the-market-over-time-95-of-financial-professionals-cant-do-it/
Some statistics that prove the summertime seasonal weakness for stocks: https://dailyreckoning.com/a-profitable-way-to-play-the-summer-lull/
Article on the benefits of staying in the TSP when you retire, and an SEC bulletin discussing the importance of considering fees: http://fedretire.net/the-tsp-advantage-should-i-stay-or-go/
More food for thought on leaving the TSP when you retire. One thing missing from this list is that the TSP is protected from lawsuits: https://www.fedsmith.com/2017/03/23/is-the-tsp-too-cheap/
TSP Timing beat the S&P 500 for thirteen consecutive years, almost matching Bill Miller’s feat of fifteen consecutive years. https://www.bloomberg.com/news/articles/2016-08-11/bill-miller-buys-legg-mason-s-stake-in-his-fund-company-lmm
Some great webinars from June 2020 regarding seasonality and cycles: https://www.youtube.com/channel/UCLc8rFIHO-toJ2Qu4a3dJXQ
Per this article 86% of investment managers failed to beat benchmarks in 2014: http://money.cnn.com/2015/03/12/investing/investing-active-versus-passive-funds/ however the Enhanced strategy did so not only in 2014, but in 12 consecutive years, and never had a negative return.
According to this study http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1948627 , investment “literacy” declines about 1.65% per year after age 60, but financial confidence does not decline. Figure 3 from the above reference:
It is important entering retirement to have a simple plan to overcome this fact. Using a simple strategy such as those available at TSP Timing will put your investing on autopilot. You can simply put all future fund transfer dates on a calendar, and then literally spend no more a few hours per year achieving superior returns that your friends won’t believe. Any cognitive decline in financial ability that you may face in the future will not matter. You may want a financial advisor for other planning and estate issues, but you will not need one for investing your TSP or IRA or similar accounts. In addition, the TSP Timing approach will be a snap for your spouse or anyone else to take over for you when the time comes. Being a Federal employee, I’m confident that you can do this; you can easily and successfully manage your investments for life.
If you’re considering rolling over your TSP account to an IRA upon retirement, do your research first. The TSP Timing strategies show how you can generate higher returns by sticking with the TSP. Here’s a good article on the subject: http://www.bloomberg.com/news/articles/2014-08-12/brokers-lure-soldiers-out-of-low-fee-federal-retirement-plan
You’ve undoubtedly heard this advice before, but if the future returns of the TSP Timing strategies are good, this is just plain wrong: http://money.federaltimes.com/2016/07/06/dont-fall-for-tsp-timing-advice/
Vanguard’s John Bogle proved that simply staying in the S&P 500 Index fund will give you better returns over time than most investing pros with actively managed funds can achieve. http://www.marketwatch.com/story/john-bogle-gets-the-last-laugh-2016-05-03 But I believe it’s possible to do better than buy-and-hold. If past returns are any indication, actively managing index funds such as those in the TSP using well thought-out strategies can blow away the returns of the simple buy-and-hold approach.
Here are some stats on how a balanced portfolio approach performed over a long period (1985-2015): http://ryandetrick.tumblr.com/post/136226077810/how-bad-has-2015-been-for-diversified-investors Compare the numbers since 2004 in the article (hint, it’s less than 6% per year) with the TSP Timing strategies.
Stock market returns over the next decade are likely to be very meager. https://realinvestmentadvice.com/why-the-next-decade-will-foil-financial-plans/ Therefore it’s important to have some means of performing better than the expected low single-digit returns. With TSP Timing you have a fighting chance of beating the averages.
More dire commentary on how bad the market is going to perform for years to come. You need a way to do better! TSP Timing strategies offer that chance. https://www.hussmanfunds.com/comment/mmc171204/
Here is a great article about spending your savings in retirement. Don’t cut yourself short, enjoy what you’ve earned! http://investingforaliving.us/2016/04/09/retirement-spending-revisited-live-a-little-why-dont-you/
Top 5 reasons why the TSP is the best retirement plan ever: http://www.fool.com/retirement/general/2015/01/25/tsp-5-reasons-why-its-the-best-retirement-plan-eve.aspx