“If everything I’ve done is Wrong… then the Opposite must be Right”.
This is the time of year when people make (or break) New Years’ Resolutions. For those who follow Tim Ferriss, there is an alternate implementation of the Resolution where you instead do a year-end review, tabulate what was Positive and Negative in the past year, then resolve to avoid the biggest Negatives in the coming year.
If you recall from last year, I resolved to roll all my IRA assets BACK in the the TSP, based on the following facts and theories:
- (Fact) TSP will soon allow much more withdrawal flexibility,
- (Fact) I’m not smarter than the market,
- (Fact) TSP Lifecycle funds have the lowest fees of any target-date fund, and
- (Theory) TSP Lifecycle funds are the best target-date funds available based on their cash-equivalent fund (the G Fund).
… so how about #4? Any way to prove this theory in to fact?
Maxing your 401(k) or TSP will help you get to this Happy Place faster…
There’s a lot of debate about how much you should put in to your TSP or 401(k) plan every year, and whether you should ‘front-end’ load your 401(k) at the beginning of the year, dollar cost average during the year, or back-end load your 401(k) at the end of the year for tax planning.
Here’s a 401(k) hack that works for me at the end of every calendar year.
My Lending Club investment returns have been taking a beating lately. Even with a spread of more than 1400 loans across multiple grades, I’m getting burned with -0.3% Annualized Return.
This account funded in the Spring of 2015, so the loans are in their at their 30 month point, a ‘danger zone’ when Lending Club reports most defaults take place.
This account has followed all of the recommended investing ‘rules’ on the Lending Club website – Buy more than 800 loans, spread out your credit risks, etc. After following the Lending Club guidance, all I can state is that the performance is rather unnerving, minus 0.3% Annualized Return: Continue reading