Homeschooling

[LeatherneckPA]

I hope this is the right area, still pretty new to this board.

Nope, HS is not off-topic for ER. What I'm talking about is learning to take responsibility for investing my own 401k when I leave the Feds. I really don't want to leave it invested in their TSP. After all, they've done such a "marvelous" job managing the SS system.

So I'm looking for some BASIC online enducation. Like, for instance, the difference between no-load, front-load, end-load; or managed, life-cycle, and a whole slew of other terms thrown around here and Kiplinger's and Motley Fool with wild abandon as if they were terms embedded in the genetic memory of all and we just need to dig deep enough to find the meaning.

Up to this point I've been LUCKY! I got a good government job and kept it. I maxxed out my TSP savings and contributions. But in 20 months I have to find something else to do with that money. I would prefer to have SOME clue what the heck I am doing and why.

I've always been good at reading and retention. My family has always said, "If Mike can read it, he can do it." So I'm looking for recommended sites with good introductory level info, preferably not from self-serving, commissioned individual who wants me to invest in his kid's college education or his Maui beach house.

 

[REWahoo]

Mike, you posted in the right place. I'd recommend you take a look at this: http://investingessentials.blogspot.com/

 

[REWahoo]

Two more good resources for investment basics:

www.moneychimp.com
www.investopedia.com

 

[REWahoo]

...and depending on whether or not you like the format, http://www.morningstar.com/Cover/Classroom.html

OK. I'll stop now.

 

[donheff]

Mike:

You will learn that a lot of people around here invest through a diversified set of index funds. One of the things they all look for are low expenses. For that the TSP shines. It has incredibly low expenses and a reasonable selection of index type funds and target retirement (aset allocation) funds. In fact I am considering rolling an old traditional IRA INTO the TSP. As for social security the problems do not result from the Federal bureaucracy mis-administering it. The problems result from the underlying structure - set by law.

 

[yakers]

Don't jump out of the TSP without being sure exactly where you want your money. I have transferred old IRA money into the TSP because it is a great, simple system. It can be a good core holding if you want to expand by adding assets not in the TSP like REITs, commodities and various sector funds. I expect to retire in the next 3 to 9 months and expect to transfer some TSP money into a Vanguard IRA so I can add some asset classes but I will hold some funds in the TSP as the G Fund will be my major bond fund. And you could do worse than just holding the Lifecycle Fund and then just go play.

 

[grumpy]

I agree with Yakers. For the fixed income portion of your overall allocation you will be hard pressed to find anything comparable to the G-Fund outside of TSP. After I retired I move all of my TSP $'s into the G-Fund. Along with a modest amount in I-bonds that is my entire fixed income allocation. The G-fund expense ratio is tiny and the yield is similar to the highest CD rates.

Grumpy

 

[JohnP]

As another retired Fed, I'll agree with DonHeff, Yakers and Grumpy on the TSP... It is a really great set of funds with extremely low costs. With my pension I feel that the G fund is great but that I can get a little risky... so I am 90% in the I fund/ 10% in S.

Good luck on the homeschooling and update us on your progress.

JohnP

 

[jazz4cash]

I agree with all the others that advise sticking with TSP to whatever extent it meets your needs. You have the right idea to get schooled regarding the technicalities of investing. As you will see index funds are highly regarded by many as a "core" holding. The expenses charged by TSP blow everyone else out of the water........they are about .005 vs. .018 for Vanguard which is the standard for low expense index funds (S&P 500). Also rest assured that the TSP program is outsourced, so until they establish a TSP Administration, I don't think the comparison to management of the SSA should be a concern! I am somewhat new to TSP as spouse is recent Fed employee and I gotta say I am impressed with the program so far.

 

[kumquat]

For your basic HS, look at the links at this site: http://www.financialwebring.com/

It's geared toward Canadians, but the basic definitions & principles are the same. One link not to miss is this: http://www.shakesprimer.com/

 

[Khan]

I agree with all the others that advise sticking with TSP to whatever extent it meets your needs. You have the right idea to get schooled regarding the technicalities of investing. As you will see index funds are highly regarded by many as a "core" holding. The expenses charged by TSP blow everyone else out of the water........they are about .005 vs. .018 for Vanguard which is the standard for low expense index funds (S&P 500). Also rest assured that the TSP program is outsourced, so until they establish a TSP Administration, I don't think the comparison to management of the SSA should be a concern! I am somewhat new to TSP as spouse is recent Fed employee and I gotta say I am impressed with the program so far.

Just a reminder, Senators and House members are included in the TSP.