Despite the red hot stock market and longest-ever bull market in history, federal workers have just over 40% of their money in treasury securities.
Explanations vary as to why the bull market continues. Many who predicted the market would tank, from Trump or Brexit, have yet to be proven correct.
Whether it’s down to strong job growth or low inflation, financial planner Art Stein says Thrift Savings Plan investors should like first quarter 2019 results.
TSP performance in March mostly echoed that of the previous month. The F fund performed better, and the S fund continued to plunge from its January peak, but the other TSP funds managed to stay in the black despite yielding still smaller returns.
The treasury securities G Fund continues to be the favorite of feds investing for retirement, while the Trump administration wants to lower its payout.
Allan Roth, founder of Wealth Logic and a nationally syndicated financial columnist, said that when it comes to investing, his motto is “Dare to be dull,” as in boring.
Financial planner Arthur Stein is today’s Your Turn guest and will talk about investment time periods for Thrift Savings Plan participants.
Maybe it’s time to clean or even replace your personal political filter, at least when it comes to making long-range financial decisions. Most experts agree that based on past history the stock market is long overdue for a major correction of 20 to even 30 percent.
Fear of shutdowns and the potential impact on federal retirement plans may or may not have put a dent in Thrift Savings Plan returns for February.
As more companies scale-back or more often eliminate retirement plans for their workers, the government’s benefits package looks better and better to many private sector employees. But all comparisons are relative.