Impossible to time the market. In retirement, I use the G-Fund to rebalance back to my 70/30 allocation (buy low sell high). While working, I never used the G fund at all - 100% stocks, set it and forget it.
Mis July I followed eecommendation of advisor and went from G to C 100%. It has now plummeted, and I've lost tons!! I retire in 2 years, but now I have so much to make up for. Pretty terrified.
Sorry to hear that. I'd argue 100% stocks may be too aggressive for most people retiring that soon. You might consider a less aggressive allocation that better aligns with your objectives. You should tell your advisor that his recommendation is making you feel uncomfortable so that they can provide you with a better solution. Hope this helps. -TG
How about this C/G fund strategy: start 100% C fund and expect to be 100% C fund the majority of the time. Follow the S&P 500 6 month performance on your phone. When the S&P surges 15%+ in 6 months and is above the long term exponential trend line, then switch to 50/50% C and G to mitigate the eventual down market correction. When the S&P enters bear market territory (down 20%), then switch back to 100% C fund to maximize the rebound gains. I call it the Lather, Rinse, Repeat strategy, but is basically the sell high and buy low strategy with trigger points. Trouble is, it is challenging psychologically to sell when you're making money and buy when you're losing money. I didn't do this myself and instead stayed 100% C fund for decades and did very, very well simply waiting out recessions and bear markets. But looking back I probably could have done twice as well with this sell/buy strategy. Is there a way you could model this with historical S&P data?
That's literally what I'm doing. Markets were overbought, and I was expecting a correction and went 100% G fund. Once the market was getting oversold, I switched back to S fund 100%. I just switched back to G fund since I'm expecting a big drop in the market very soon. I was at a +13% before I switched to G fund.
@@Rei_naldo What you are doing is different in that you are going to 100% G fund. If you do that you could be exposed to a bond market crash which would be exceedingly rare but not out of the realm of dedollarization bond manipulation. It would also lock out growth fund gains and not ke e p up with inflation. Also, I like the C fund more than the S or I funds. So in my strategy one would go 50% C and 50% G when the market surges 20% and goes above the trend line (locking in some gains and mitigating loses when things cool off), and then revert back to 100% C when the market falls -20% into a bear market (to ride the recovery upswing). Don't sweat the 5% to 15% volatility fluctuations.
This is kind of what I’m doing now….difference is I am normally 100% c fund and noticed that S&P over the last few weeks was dipping so I changed to 100% G. Once I figure it’s rock bottom I’ll transfer it back. With 50/50 you are just lossing
@@drmitofit2673The F fund has the exposure to bonds while the G fund is mandated by law to not go down in value (inflation not withstanding). Bonds have been "crashing" since 2020 and we appear to be at or near a bottom.
