Q: I will be rebalancing my portfolio biannually to the initial allocation until I reach an age that justifies a change to a more conservative approach. To complete this action, do I process both an interfund transfer and a contribution allocation? Is biannually OK? A: You’re asking for specific, individual investment advice, which I can’t provide through this forum. In general, I recommend that Thrift Savings Plan investors using this do-it-yourself strategy set the contribution allocation to 100 percent G Fund and then periodically rebalance the existing assets to their selected allocation. I recommend that you rebalance no more frequently…
Browsing: G fund
Q. My question on keeping my money in my TSP when I retire from the Post Office was answered (yes, I can keep it in until age 70 1/2) Now for the next question: If I decide to keep it in the TSP, can I add to it after I retire? I have heard that you can’t, please clarify this. If the answer is no, what would be the advantage of keeping it in? If the answer is yes, how would you do this, automatic from retirement payments? A. The only way to contribute to your TSP account after you…
Q. What fund diversification strategy percentages would you recommend for low to moderate risk tolerance for my TSP account? I am 57 with 27 years of FERS service. I plan to retire at age 60. I currently have $425,000, all invested in the G fund. I moved it to the G fund in October, 2009 after recouping all my losses of 2008. I figured the market would tank again and I would jump back in to take advantage of low share prices. Obviously, I was wrong. I want to get back into the riskier funds to maximize my returns without…
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.
Q: Does TSP have a “bear” fund, or are they planning to introduce that type of fund soon? If not, then how can I take advantages of a “bear” fund? Also, what is the allocation of instruments in the G fund? A: There is no “bear” fund in the TSP — that is a fund that moves inversely to a particular market. Visit www.tsp.gov for a description of each of the available TSP funds and their contents.
Q: I was in federal service for three years and contributed to the Thrift Savings Plan. I left federal service more than five years ago, but I still have money in my TSP account, all in the G Fund. It has grown over the past five years by several thousand dollars despite the fact that I have not put any money into the account in those five years. Is there a way I can contribute to TSP even though I am no longer in federal service and have not contributed any money to the fund recently? A: Yes, you can…
Q: I had read that a fixed amount of money in (not making active contributions to) the G Fund would grow over time based on the G Fund’s rate of return. Is this correct? A: It is correct.
Q. A rumor is going around at work telling everyone to get their money out of the G Fund because the government is going to borrow from it and won’t be able to repay. They said that it almost happened once in the 90s and could happen again real soon, so people should avoid G altogether because, although it has the least risk, it’s not safe from the government getting to it. Sounds like another vicious rumor; what do you think? A. I agree — an unfounded rumor.
Q: I have all of my Thrift Savings Plan money in the G Fund, but I am worried about inflation. Is there any way to buy I Bonds or other inflation-indexed securities through the TSP? A: Not yet.
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,…