Q. I tried to locate the letter or column that discussed how to manage F Funds in this low-interest environment. If I recall, you mentioned it was probably a good idea to keep somewhere between 30 percent to 70 percent of what one would normally keep in the F Fund in the G Fund in the current interest rate environment. I recall you mentioned something about 3 percent of something as being a point at which you would consider moving those funds back to the F Fund? Could you provide this information again?
Browsing: G Fund
Q. I am 68 and plan to retire in two years from a civilian position with a district attorney’s office. I have a traditional IRA in a Vanguard account, which consists of both non-deductible and deductible contributions. I no longer contribute, and the IRS Form 8606 reflects a $99,000 non-deductible basis. I would like to move that portion to my Vanguard Roth IRA and direct transfer the remaining portion to my TSP account, mainly to take advantage of the G Fund. If I move the $99,000 to my Vanguard Roth IRA first and then request Vanguard move the rest to TSP, will…
Q. What fund diversification strategy percentages would you recommend for low-risk tolerance that also lets me earn more through my TSP account? I am a 29-year-old U.S. Postal Service employee with almost two years of service. I currently have $10,200 in my TSP with all of it invested in the G Fund.
Q. I thought the G Fund was supposed to be stable and even though you would not gain much, you should not lose money. I received my TSP statement and it says I lost $3,000 in 2016. So if I lost that much, I really lost more because of what I put in and the agency matches. That’s a lot of money. Did someone at TSP make an error? Does that sound correct that I could have lost money in it?
Q. I am currently serving in the Army. I have completed five years of service and have been contributing 5 percent into my traditional TSP account. One-hundred percent of my contributions are going into the G Fund. What fund or percentage of funds would you recommend? I am already a staff sergeant and will serve at least 20 years. I am also aware of the changes to TSP matching for military members and the reduction to retirement percentage that will happen if I elect to defer my legacy plan.
Q. I will turn 50 on March 8. I wanted to ensure that I did the catch-up contributions, so when I called ABC center to confirm that I did everything right, the representative asked me if I saw a box in which I could contribute and a submit button. I replied: “Yes.” He said I could enter the info for the contribution that day (this was Dec, 21, 2016) and the contribution would be effective on Dec. 25, 2016. I explained to the gentleman that I didn’t turn 50 until the year 2017. He said the pay period included 2017. Will I…
Q. My concern about the impact of a federal debt default on TSP accounts is that my account would be subject to bankruptcy as a federal government asset, and therefore be reduced to something like $0.10 on the dollar. Are the funds mine or those of the federal government?
Q. Both the president and OMB nominee have floated the idea of defaulting on national debt in order to settle it at a lower cost. What impact would there be on TSP accounts if debt were defaulted upon?
Q. I have been investing for 10 years in the G Fund with minimal gains. I recently put 50 percent toward the S Fund and 50 percent toward the C Fund. Was that a smart move? I have to retire in 10 years (mandatory 57 years old).
Q. With interest rates likely to rise, driving the value of bond funds down, in the near term, doesn’t this impact the ability of the F Fund to ameliorate risk? Would you advise against new F Fund investments in these circumstances, or is there still a role for F Fund investments?