Another day, another drop in the Dow.
The Dow had another heart-stopping day today, losing more than 500 points as of 4 p.m. And if you’ve looked at your TSP account lately, you might be having panic attacks and be contemplating drastic changes to your fund allocations.
That’s exactly what Federal Retirement Thrift Investment Board members and staff are hoping you won’t do.
“This is not the time to sell low when you bought high,” said member Alejandro Sanchez at Monday’s board meeting.
The board urged participants to hang in there, saying market history proves short-term losses are just a speed bump on the way to long-term gains. A roller-coaster Dow, which reached milestones last week in terms of gains, shouldn’t inspire rash interfund transfers, said Chief Investment Officer Tracey Ray.
“A lot of events occurred in October. The market was up 5 percent last week, the highest since 2003,” she said.
So the advice? Hang in there. Don’t make irrational decisions. Remember your long-term goals. But if you really feel the urge to play with your funds, TSP offers unlimited transfers to the G Fund, tied to U.S. Treasury securities. That may be a decent option for those nearing retirement but not those with decades to go until cashing in.