Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: hattend

If you are putting your money in government securities don’t expect much growth from capital appreciation. Bonds can only go down from here in value since interest rates are extremely low. Market values of bonds are inversely associated with interest rates.

HOWEVER, that being true if you are intending to work a long time for the government that will not affect you that much over the long run since the interest will compound without taxes.

Most financial theory indicates you should diversify your holdings so perhaps you should consider splitting your contributions with a couple of more choices.

That is conditioned on how long you anticipate before retirement and the longer that period is means you would profit from weighting toward the more speculative investments.

My buddy just retired from the feds and he did extremely well by investing heavily in the standard and poor’s index funds even after the market collapse after 911 and 2008.


16 posted on 04/14/2011 1:41:51 PM PDT by arrogantsob
[ Post Reply | Private Reply | To 1 | View Replies ]


To: arrogantsob

I’m putting everything in Gov’t Secs now because that is the “default” starting position when the account is started.

But, now that it is established, I can move it around into the 5 choices given.

Thanks for the input!


19 posted on 04/14/2011 2:10:57 PM PDT by hattend (Obama got his 3am call about Egypt. The call went right to the answering machine.- Sarah Palin)
[ Post Reply | Private Reply | To 16 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson