Bull market: All good things come to an end … then what?

For the past few months many federal workers have heard from experts that the current record-long bull market can’t last forever. Many of the experts say that when the correction comes, a 20 percent to even 30 percent drop in the stock market is possible. Some say it’s inevitable, that the end is near.

Many of those concerned about the financial future of federal workers and retirees have a solution: A parachute that will let people avoid what just about everybody says is coming. The solution is this:

Move your retirement nest, now in the Thrift Savings Plan’s stock market C, S and I funds, and give it to them — them being the people who want to protect you by getting your money out of the federal 401(k) plan and into their plan, fund or investment.

Some say you will be safest in gold. Others like silver or other precious metals. Some offer to sell you the gold or silver. Others say they will give you a certificate stating you have X number of bars, ounces shares. While somebody in Boston, New York or Denver actually has the ingots, they are yours to sell when you ask for them, and actually get them in hand.

Last week, some investors were contacted by firms about a warning. They said that one of the major Wall Street investment firms is telling its prime customers that “big losses” in the stock market are ahead.

A bona fide expert in the TSP, who is also an investor, said there are a lot of warnings out there from experts, non-experts and people who just want your money. He warns that “to get out of the TSP to try to protect your account in gold could be very dangerous for your future. The TSP’s Lifecycle funds are professionally designed to maximize returns and minimize risk. Rather than parking your money in gold, you should probably look at the self-adjusting L, or Lifecycle, funds.”

That seems like a reasonable thing to consider. Remember the old saying about looking a gift horse in the mouth. Chances are if it sounds too good to be true, it is.

Nearly Useless Factoid

By Amelia Brust

The modern safety pin was invented by Walter Hunt in the mid-1800s. He designed his creation in three hours  from a single piece of wire to settle a $15 debt.

Source: Smithonsianmag.com

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THRIFT SAVINGS PLAN TICKER

Jun 18, 2021 Close Change YTD*
L Income 22.8950 -0.0718 2.88%
L 2025 11.7475 -0.0782 5.61%
L 2030 41.3301 -0.3582 7.07%
L 2035 12.3983 -0.1179 7.71%
L 2040 46.8639 -0.4865 8.36%
L 2045 12.8274 -0.1425 8.91%
L 2050 28.0756 -0.3333 9.49%
L 2055 13.7453 -0.2025 11.70%
L 2060 13.7453 -0.2024 11.70%
L 2065 13.7452 -0.2024 11.69%
G Fund 16.6073 0.0007 0.53%
F Fund 20.8808 0.0657 -2.22%
C Fund 62.4507 -0.8275 12.61%
S Fund 82.8816 -1.0758 11.60%
I Fund 38.5980 -0.6987 10.58%
Closing price updated at approx 6pm ET each business day. More at tsp.gov
* YTD data is updated on the last day of the month.