Browsing: G Fund

With another potential collision between the U.S. government’s need to borrow money and the limit currently imposed on its ability to do so, I am receiving frequent questions from TSP participants about whether the G Fund is safe from the threat of the federal debt ceiling. The answer is your investment in the G Fund is at least as safe as any investment you’ll find. Whether or not the debt ceiling is raised, the law states that the government must make good on its obligation to G Fund investors. Here is how the TSP explains the debt limit’s impact on…

Q. I have $600,000 in my TSP allocated as 41 percent in the C Fund, 6 percent in the S Fund, 22 percent in the I Fund, 23 percent in the G Fund and 7 percent in the F Fund. Is this an appropriate allocation for a 54-year-old retiring in two years? I need approximately $2,000-$3,000 a month for 25-30 years. If not, what allocation do you suggest?

Q. I am 38 years old with 15 years of government service as a GS-14. I hope to work no more than 20-22 more years, assuming age 60 will give me the maximum benefit. My TSP allocations are where my concerns lie. I am blindly diversifying my account as follows: G Fund at 10 percent; F Fund at 0 percent; C Fund at 50 percent; S Fund at 30 percent; I Fund at 10 percent. I have no allocations in the L Fund. I am contemplating having future earnings go into the L2040 fund. Would you recommend this, and how much…

Q. I am 69 years of age and have all my funds in the 2030 fund totaling about $ 89,000. I would like to start taking out $500 per month starting in January 2018. What type of allocation of funds would be good for this amount, percentagewise, where would the spread be best to last 15-20 years. Could you give me an example or two of allocations that would be of great help?

Q. I am a FERS employee with 28 years in government service and about five years away from retirement. I evaluate my TSP portfolio allocation based on risk comfort, life expectancy, etc. in isolation from what I expect to receive from Social Security and my FERS pension. My allocation is roughly 60 percent stocks, 40 percent bonds (mostly G Fund). Recently, I have been told that because I will have a guaranteed income stream from my FERS pension, I can afford to take more risk in my TSP and I should move money from the G Fund to the stock side of the portfolio.…

Q. I have accumulated a tidy sum in my TSP investment account. It is diversified between stocks and the G Fund. With the volatile market, should I take money from the stock fund and move it all to the secured G Fund? I would still contribute while working. I plan to retire in two and a half years at age 66½ and worry about having this money secured for retirement.

Q. Although we are not there yet, it seems the expense ratio gap between the Thrift Savings Plan and Vanguard is continuing to narrow. Vanguard recently lowered its expense ratios considerably on many of its funds. Admiral Share-class expense ratios on some funds are within a whisker of being the same as TSP. Do you think that a firm like Vanguard can now offer advantages to individuals who want to roll over their TSP balances to them? At the very least, it should serve as a wake-up call to BlackRock and TSP management that they need to not let the…

Q. I have been a federal employee for 10 years. I am 48 years old and am putting very little in the G Fund, which is at about $14,000 now. Not much. They say it’s never too late. I’m not planning to work until 60. What should I do to gain more money for retirement fast and preferably safe?

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?

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