Q: As the government treasury bond yields go up, does the Thrift Savings Plan’s G Fund share price increase? The opposite would be true of the F Fund, since share prices would be affected in a negative way with rising interests rates. A: While there are times when the daily return for the G Fund is negative, the monthly and annual change in the G Fund’s share price is always positive.
Browsing: F Fund
Q: I have never really understood bonds, and why yields and prices move opposite each other. But what I really need to know is if now is a good time to scale back on my TSP F-account purchases? Interest rates and inflation are very low now, and more likely to go up than down in the future. Am I buying bonds at a bad time now? The F-fund only makes up about 20 percent of my TSP portfolio, so I shouldn’t get creamed if inflation starts to kick in, but I’d just as soon not get hit even on this…
Q: I truly do not know what I’m doing with my Thrift Savings Plan funds. I’ve been told to divesify them; what exactly does that mean? If you were to look at this breakdown (figures rounded slightly) and know that I won’t retire for 21 years, what recommendation(s) would you make? L 2040 Lifecycle Fund: 74.72 percent of total funds, $21,423; F Fund: 5.33 percent, $1,529; G Fund: 5.28 percent, $1,515; C Fund: 4.91 percent, $1,408; I Fund: 4,88 percent, $1,400; S Fund: 4.88 percent, $1,398. A: Consider the following growth allocation: 55 percent C Fund, 26 percent S Fund,…