Q: The letter from Treasury Secretary Tim Geithner to Harry Reid said that they could suspend re-investment of the G-FUND if the debt ceiling was not increased. How would this impact the G-FUND? A: This has been done before and the government will make up any losses, so there should be no affect on participants’ accounts.
Browsing: investment
Q. I am an avid follower of the Federal Times Q & A section and would like some clarification on a statement I often see. When people write in asking for any type of TSP investment advice, the answer is that there is no “one-size-fits-all” answer, which I could not agree with more. However, when it comes to leaving funds in the TSP, rollovers, etc., the answer is always that the TSP is the best investment vehicle available. In my opinion, this is another situation where there’s no “one size fits all” and would like to understand why there is…
Q: I’ve been in civil service for 4 1/2 years. I’ve been in Thrift Savings Plan for about 3 years. I have my TSP invested 100 percent in the I Fund. I intend to work maybe another 10 years. I was thinking about putting 35 percent in the S Fund, 35 percent in the C Fund and the rest in the I Fund. The percentages are not set in stone but I am thinking about investing in the S Fund and the C Fund. Any suggestions? A: I can’t provide specific investment advice through this forum — it would be…
Q: First question: My wife and I are both in the Thrift Savings Plan, and we intend to retire in nine years. I heard somewhere that if I used my TSP funds to pay off my home loan and land loan that it will not be taxed. Is this true? I am under the GL scale and will have 31 years of federal service and four years of military service at age 57. My wife works for the Postal Service and will have 20-plus years of service at age 55. My second question is, if I decide not to withdraw…
Q: Can you comment on Thrift Savings Plan Pilot? I am five years from retirement and took a big hit from the last dip in the market. I need to maximize my TSP; how am I to know what the proper percentages are to allocate to the five funds? A: I don’t believe that market timing services are a reliable way to manage a portfolio for retirement income. Like anything else, your assets should be managed to acheive your goals, not to beat this or that arbitrary benchmark. Asking how to determine the proper asset allocation to support your goals…
Q: I consider myself very good at saving money for and with my family as well as managing my family’s budget. We have a young toddler, and my wife and I are still building our family. I am 34, have been with FERS (active employee) since I was 33, and I have four years of active military time I am almost done buying back. I have my wife saving a little more than 11 percent of her incoming from teaching school (company doesn’t match), and I save 15 percent per paycheck (20 percent if you count my federal match). I…