Market Crisis: Is Your Thrift Savings Plan Investment Safe?

re: Market Crisis: Is Your Thrift Savings Plan Investment Safe?

famcoll — Tue, 24 Mar 2009 07:37:14 GMT

This article doesn't answer the question its title poses about safety. We all know the USG is bankrupt. We all know social security is a current account (basically unfunded with no savings base behind it). I have to assume the TSP "interest" isn't real either and the USG is just paying what is required in withdrawals when it must be paid to the account holder.

It would be useful if you would answer the question: is money in the TSP safe? The Fed is buying our own debt now because no one else wants it. What happens when the USG goes belly up? It doesn't seem so far-fetched anymore. If people are living on USG pensions, with TSP savings, and other money in "FDIC insured" banks -- what happens when there is no cash to pay the pensions, support the TSP withdrawals, or cover the deposits?

If the answer is: "the USG just prints more" then I know it is time to cash out and run.

re: Market Crisis: Is Your Thrift Savings Plan Investment Safe?

Gary — Sun, 08 Mar 2009 03:31:38 GMT

Along about Oct/Nov 2008 when the markets really started to stutter, I reallocated my TSP holdings and allocations to 80% G and 5% to the remaining F, C, S, and I Funds. My recent TSP annual statement informs me that I lost over $17K in value....pretty scary! On the other hand, I think I feel pretty good about still investing in the FCS and I funds at this thim, because those fund shares are essentially on sale right now. In fact, I'm actually considering (as soon as the market bottoms out and starts to rebound) reallocating again and dumping a lot more $$ in the riskier funds again while they're still on sale. Does this sound like a sound strategy to anyone? By the way, I'm a YC-03 who's about 7 years from my 20 year civil service retirement.

Gary

re: Market Crisis: Is Your Thrift Savings Plan Investment Safe?

bzane — Thu, 05 Mar 2009 09:46:26 GMT

*******

Check your Beneficiary - mine was changed

and there is no paperwork to cause it.

*******

It's a blatant unauthorized change to the database. It could have been your info.

*******

The TSP is trying to tell me it's a clerical error.

Any idea what that means.

All my savings would have been turned over to a stranger.

They recognize the obvious error, but want to downplay it.

Just luck I spotted it on the ANNUAL Statement.

It hasn't been on any other statements because those statements contain the following: "Designated Beneficiary on file xx/xx/xxxx"

Just Luck me and my family haven't gotten ripped off for all the cash . . . and I HAVE to keep it in the TSP.

This program scares the hell out of me now.

And when I first called them, she said she had heard of other cases ! ! !

They say I can't have a security official look into the problem or call me back, but I can fax them an updated TSP-3.

I ask about putting the Designated Beneficiary in the on-line information.

They say they don't have any plans to change the on-line info via www.tsp.gov

I am outraged. If I were the database admininstrator or security officer I would be all over this, getting more information, and finding out WHEN the data was changed, and WHO had access to the data *at that time*.

---

I feel like they don't believe me - but somehow the DATA GOT CHANGED.

You tell me how the data got changed.

I didn't sign up for this.

Several phone calls later, and they blow me off.

The gave me a non-functional fax number, and I had to call back and convince them that number was no good. Lack of attention to details.

My name is Robert.

The Designated Beneficiary was changed to POK SUN.

That person would have walked off with all my savings - and there is nothing that could have been done ! ! !

---

Hope I don't die befor they get the correct information into my accout.

Any suggestions how I can get this matter looked into ?

contact me: bzane@hdo.net

re: Market Crisis: Is Your Thrift Savings Plan Investment Safe?

Peaceful Gains — Fri, 24 Oct 2008 20:52:50 GMT

It's true that over the long term, stocks do (or did) go up. But that's not the whole story. The key question is, how long is the long term? Stocks today are *lower* than they were 10 years ago.

Instead of "buying and holding", you should consider the risk of the investment. When stocks have a lower risk, you should be in stocks. But when the risk rises, you should get out of stocks and get into something safer. For example, we've been completely out of stocks since mid-July. Following this strategy, you could make much more money than simply buying and holding stocks. What's more important, you could make that money with your account experiencing way less volatility.

re: Market Crisis: Is Your Thrift Savings Plan Investment Safe?

Al — Fri, 03 Oct 2008 00:58:57 GMT

The C Fund is not "a constant loser" "invested in borderline stock." Over the last 5 calendar years from 2003 - 2007 it has an annualized return of 12.8% The C Fund is a S&P 500 Index very similar to any other S&P 500 Index from from Fidelity and Vanguard and as such has similar returns.

re: Market Crisis: Is Your Thrift Savings Plan Investment Safe?

TOM — Wed, 01 Oct 2008 02:27:08 GMT

Yes, you should be in for the long term. But what if the end of your long term investment is now. Just retired and the ones taking the early out and moving their money, have lost big time and don't get a chance to rebuild. A lot of stocks have held steady and a lot have of stocks have went up in value the last several years, I am not sure, why such as the C fund has had a lost for a while. It seems like the C fund has been invested in borderline stock, no name stocks. I think TSP should relook at the investors and look at what type of stock they are investing in. I can understand the current stockmarket troubles, but I see no reason why the C fund should be a constant loser. Even if it is called a high risk C fund, why can't it be a high risk with stocks that are known to make a profit. Maybe TSP should change investors, they certainly need to reexamine the investing process.