Hello Everybody
Not saying that I predicted this or anything, but I am not completely shocked that after the AM sell off yesterday Dec 9, the markets spent the rest of the day basically regaining ground. The NASDAQ (the location of almost all small caps and thus S-Fund holdings) actually closed 25 points to the positive, the SP 500 (large caps and thus C-Fund) closed almost positive, and the Dow Jones Index (large caps and thus C-Fund) didn’t quite do as well, it attempted to go positive but did not make it. However, I am much more at ease now that the markets displayed a desire to regain lost ground. Night-time SP 500 futures reflect a continued desire to seek higher territory. I am TDY with my MacBook so my charts and graphics are a little different. See chart:
The green circle shows night-time action, which is higher than the prior red bar, displaying daytime 12-09 action.
I remain 100% S-Fund. This leads to a very common question I am getting from my great readers via email, which is “When you say you are 100% S-Fund, what does that mean.” To that, I request folks please take a look at the FAQ, especially FAQ #10, at http://www.thefedtrader.com/qa/ That is my most common question via email.
Some other items, I am posting this “value added material” as it has some nexus to TSP and retirement. I am cut and pasting a portion of the text as some subscriber’s work email do not allow for clicking on external links.
– Roth IRA’s require new election in 2015, per Military.Com website. See link. Cut and pasted from the site is:
In the past (and through 31 January 2014), contributions to Roth TSP accounts were made by designating a dollar amount that you wanted contributed. Beginning 1 January 2015, those same Roth TSP contributions have to be made as a percentage of each of your pays, including basic pay, incentive pay, and special pay. You can still make a dollar amount election for bonuses.
The important part is that you have to make the changes in January 2015, or Roth contributions will stop effective 1 February 2015.
– 2015 TSP Contribution limit is $18,000 and it is being advocated on other sites that TSP members go to Employee Express and elect $693 TSP contribution per pay period, by Dec-13.
See this USGS bulletin directed towards USGS employees (but useful to read for all federal employees) for further info.
– Don’t forget your FLEOA, PLI Insurance premiums for the new year ahead.
– As we approach the end of the year, it might be time to assess health/age related issues and look at Long Term Care Insurance. Many government retirements occur at end of year, so this is a time to give this topic some thought. Suze Orman and Dave Ramsey tend to recommend LTC if age 55 or older. BUT, each situation is different. The federally endorsed program, is at https://www.ltcfeds.com/
** This site is dedicated to my personal opinion and observations regarding the TSP funds and the stock market. The above information is “FYI” stuff. I am not fluent (nor try to be, that is why a your heart doctor does not perform LASIK eye surgery on the side) in every topic, such as Roth IRA’s, tax planning, etc. For specific questions on that, the best resource I recommend is Dan Jamison, CPA and retired Special Agent, whom I correspond with frequently regarding topics of common interest as they relate to retirement. His email is dan@fersguide.com
“How do I log into Employee Express” or “Should I choose this option” type of questions are “not my lane” please contact your Help Desk, Payroll Office, HR, Benefits Specialist, etc.
Lets see how the week plays out….hopefully the markets will resume their uptrend as the week continues. I remain 100% S-Fund.
Please continue to recommend this site to friends and coworkers. For those who receive updates via email, please forward the update to those who may benefit from the information.
Thanks for reading
– Bill Pritchard
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