Advantages of the G Fund


Q. I’ve taken note of your leanings toward the TSP over external funds. It seems it is the G Fund that you are particularly fond of. Can you tell me the advantages of the G Fund?

A. The G Fund is unique. It guarantees a very high risk-adjusted rate of return. In 2014, for example, the G Fund yielded 2.14 percent and is on track to do about the same in 2015. I don’t know where else you can get that return for so little risk.

Using significant exposure to this fund to your advantage will improve your portfolio’s performance and the income that can safely be derived from it, over your lifetime.

Of course its value to you will depend upon how much money you can expose to it, and how well you use that exposure.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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