Any reason to NOT go all G Fund for Bond Allocation?

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BrianMc
Posts: 131
Joined: Sat Feb 07, 2009 9:03 am

Any reason to NOT go all G Fund for Bond Allocation?

Post by BrianMc » Sat Jan 14, 2017 5:04 pm

Hi All,

This is the weekend I usually rebalance my portfolio (Roth IRA and TSP). I keep all of my bonds (25% of my portfolio) in my TSP via the G Fund (20%) and the F Fund (5%). I just looked at the current composition of the L2040 fund, and it currently holds 20.5% in G and 6% in F. I know there are a lot of opinions on this, but I'm wondering if it's now prudent to just put my entire bond allocation into the G Fund. I'm not nearly as wise with respect to bonds compared to many B-heads. I understand that as interest rates rise, bond prices fall, which would negatively affect the F Fund. That's all I'll say about that.

I'd appreciate your wisdom. Thanks. -Brian

retiredjg
Posts: 31502
Joined: Thu Jan 10, 2008 12:56 pm

Re: Any reason to NOT go all G Fund for Bond Allocation?

Post by retiredjg » Sat Jan 14, 2017 5:13 pm

It is frequently suggested to put your entire bond allocation in the G Fund. I don't see any reason not to do that if you want.

Alchemist
Posts: 239
Joined: Sat Aug 30, 2014 6:35 am
Location: Florida

Re: Any reason to NOT go all G Fund for Bond Allocation?

Post by Alchemist » Sat Jan 14, 2017 7:13 pm

My entire bond allocation (10%) is in the G Fund of my Roth TSP. I do not intend to ever bother with another bond fun. No other investment vehicle gives you a guarantee on principle, protection from inflation, and the ability to enter/exit it at will.

Yankuba
Posts: 58
Joined: Wed Dec 07, 2016 10:45 am

Re: Any reason to NOT go all G Fund for Bond Allocation?

Post by Yankuba » Sat Jan 14, 2017 8:49 pm

My bonds are 100% G fund. It's risk free but you earn higher than the risk free rate. It's a rare free lunch

brad.clarkston
Posts: 588
Joined: Fri Jan 03, 2014 8:31 pm
Location: Kansas City, MO

Re: Any reason to NOT go all G Fund for Bond Allocation?

Post by brad.clarkston » Sat Jan 14, 2017 9:01 pm

No reason to not be all in on the golden goose (G fund).

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oncorhynchus
Posts: 136
Joined: Fri May 23, 2014 2:30 pm

Re: Any reason to NOT go all G Fund for Bond Allocation?

Post by oncorhynchus » Sat Jan 14, 2017 10:04 pm

No reason at all. Take your risks in equities.

o
-- Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime. --

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