Middle wrote:2. I have no idea what your G Fund is. Is it a fixed income fund? Government bond fund? But again, whether the Spartan bond fund or your G fund will perform better is anyone's guess. The general line of thinking that I have seen is that the outlook for bond funds is not great, but you have them there for the purpose of maintaining a certain AA. If you are still making regular contributions into them then you will be buying them at low prices.
hoppy08520 wrote:All of which is to say, I wouldn't stress too much over the I Fund. All that being said, if you ever wind up splitting out your TSP funds for whatever reason, then you might as well leave the I Fund out of it, and perhaps boost G Fund since your other accounts will of course not have the G Fund if you want all/some of your bond allocation in the G Fund.
Default User BR wrote:As you know, the G fund is a principal-protected fund. Its current rate is 1.5%, which very low compared to corporate stable-value funds, although G has a somewhat greater overall safety. Given your age, I really wouldn't try to guess the bond market. Your fixed-income allocation is relatively small, so what F does in the short term won't make a lot of difference. Should interest rates rise, then the share value of F will fall, but the yield will increase. I would come up with a split between G and F and just ride it. 100% G wouldn't be the worst thing in the world, nor would 100% F. I have had 50/50 between stable-value and aggregate bonds funds in my portfolio.
In the grand scheme, this is going to have much less impact than your stock decisions.
TSR wrote:I'm just going to bump this thread one last time to see if anyone has thoughts about the G-Fund issue. I may post it later as an independent question along the lines of, Does the G-Fund offer protection from what is often perceived as a problematic next five or ten years for bond funds; if so, should one put the entirety of one's bond allocation in the G-Fund if possible?
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