Q. Can you tell me why TSP G Fund doesn’t earn interest every day?
I retired just about two years ago. On the advice of my tax accountant, I consolidated all of my TSP into the G Fund about a year prior to retirement at age 62. I don’t have a lot in the TSP, but it is over $300,000. I created a spreadsheet to track my daily, weekly and monthly interest earned and payouts (that should continue till I am in my 80s).
There are no TSP postings on weekend days, but on the next work day interest is posted, which seems to be two or three days’ worth of the average daily interest amount. This leads me to believe that interest is being earned on Saturday and Sunday. But on some (not all) holidays, there seems to be no interest earned. And recently, Sept. 2 & 3, there was no change in the price of the G Fund shares “0” interest earned.
Can you help me understand this?
A. Probably a correction of accumulated rounding error. By the way, I can’t imagine why you would take investment advice from your accountant or why you would spend time tracking the daily interest accumulations of the G Fund.