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Subject:  Re: Need Advice on a Thrift Savings Plan Date:  12/7/2004  8:43 AM
Author:  CalimanDC Number:  43431 of 88830


How old are you? What are your retirement goals? Do you have any other investments already? What do you plan to do with the money in 3 years?

All of these questions will determine the appropriate answer for you. Until I know them I can only give you general advice, which it looks like you have already received some of anyway.

1. Do not invest money in stock funds that you expect to want to use within 3 years. As you have already heard, they are too volatile and you will probably not see the return you want in that time.

2. If you know what your retirement goals are then you will know how to invest. Until you determine those goals, do not put the money anywhere besides a moneymarket fund or a short-term CD. Otherwise, you merely gambling, and it would be far less fun than heading to Vegas!

3. TSP is a good long-term investment vehicle. It is not very good for short-term investments as the money is difficult to get out when you are done. I would suggest that before you put anything in there you read up on each of the seperate funds and keep an open mind. Also, keep in mind that you do not need to invest in only one fund. You can diversify your portfolio by allocating percentages within different funds. This can help you reduce risk, if that is a goal.

I would be happy to give you more specific advice when you write back with answers to my initial questions. Until then, good luck with your research!

CalimanDC (A Federal Employee with 23% of my portfolio in TSP)

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