With the financial world in chaos, it’s understandable why some small investors, like military members who were faithfully contributing to the TSP, might abandon their plan. They might be thinking, “Hey, I pinch pennies to scrape by and save for the future, but my balance goes down month after month. That’s stupid!”
It is discouraging to see your TSP balance go down, but remember, this is a long term investment. For the typical military family, you are saving money now that you won’t use for 20-30 years! With that kind of time horizon, you need to keep a significant portion of you investments in the stock market. Why? Because business will go forward, people will find a way to do things better, and they’ll be rewarded for their efforts. Investors willing to stay in the game will do great over time. A few companies will go away. Some stocks will go to zero, but others will thrive. That’s capitalism. That’s the American Way.
Save now. Stay invested. Focus on the bright future ahead.