Q. The continued drop of the stock market (and therefore the C, S and I Funds) is scaring me and I want to preserve the gains I had in 2017. I just reallocated my TSP balance to C, S and I Funds on January 29, moving from an L Fund allocation. I change my allocation every year in January, but in hindsight it was a bad decision this time.
If I have, say, $200,000 today, will an interfund transfer to the G Fund show my TSP balance to be $200,000 tomorrow? I want to stop my TSP balance from dropping by parking my TSP balance in G funds to preserve the gains I had in 2017 and then thinking about a better allocation sometime in the middle of 2018.
I’m planning to retire in about 10 years. Please advice.
A. The G Fund is the only TSP fund that is guaranteed against loss of principal.
