Browsing: G Fund

Q. You often express the virtues of the TSP, such as simplicity and low fees, but you also cite that the TSP offers eligible investors (i.e., federal employees, retirees and survivors) the unique G Fund. Besides being composed of “special-issue” Treasury bonds, can you elaborate on why the G Fund is a unique and valuable tool for managing ones portfolio and how one can best use the G Fund?

Q. I’m late out the gate with my TSP account, however I’m excited that the C Fund is on a gaining streak right now. I used to have my 5 percent going to the G Fund, then whatever total amount I had in the G Fund I switched it completely over to the C Fund. I also added another 1 percent, so now I have a total of 6 percent of my paycheck going into the C Fund. I’m only a Grade 7 so finances are a little tight, and I’m sure they are going to be even tighter when it comes time…

The election has demonstrated how difficult it can be to predict the effect of world events on the investment markets. If there was a consensus on the effect the outcome would have on the markets, it was that a Trump victory would be bad for stocks. While the stock market did drop significantly immediately following the news that Trump had won, by the end of the following day, it was in positive territory and continuing to climb. During the following weeks, several major stock market indices went on to reach new record highs. Ahead of the election, I did not…

Q. I recently started a job as a civilian with the federal government. I’m 46 years old and I’m using the TSP retirement system. What fund should I use to maximize my money while adding 5 percent to the G fund. Should I change the allotment to another fund on the list?

Q. Let’s suppose I have a TSP account balance of $300,000, and when I die I leave the $300,000 to my spouse in a beneficiary participant account (BPA). She then sets it up so the two children we have are beneficiaries in equal shares. When she passes, my understanding according to TSP rules is the children cannot transfer the money into an inherited IRA to minimize their tax consequences. The money will have to be paid out in equal shares to the children and be fully taxable. I was told that in this case the spouse should transfer the money out of…

Q. My husband is 69 and turns 70 in February 2017. He took a job with the VA at the end of his career and became eligible for and invested in the TSP. He has a small amount in the TSP account, but most of his money is in Vanguard funds. My husband is now fully retired. Is there an advantage to rolling over his IRAs into the TSP?

Q. I am looking to see if it is too late to move money to a life cycle fund. I am 52 years old and in federal law enforcement; I am trying to go to mandatory age 57. Which fund would be best to move to? I’m trying to decide if I should draw monthly at 57 or wait until 62 when the supplement ends. When is the most productive time to move (market down or up)?

Q. My TSP account distribution percentages are G: 45; F: 5; C: 31; S: 5; and I: 14, all totaling $556,000 and $10,000 in a Roth. The TSP return from the past 12 months has been -0.29. I’m thinking about retiring this year at the age of 62, and I need $25,000 from the accounts plus increases based on inflation for 30 years. I plan to keep TSP in retirement. What changes in allocations do I need to meet these needs? Do I change to L2040?