The Truth About TSP F and G Funds

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SpaceCommander
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The Truth About TSP F and G Funds

Post by SpaceCommander » Mon Jul 29, 2013 8:43 am

An article I stumbled across recently on the MOAA website. Should help contribute to the stampede out of bonds and bond funds.
Are you a TSP contributor? Are you sitting in the G Fund; or maybe the F Fund? Did you know you are losing money?... With returns like these by the time you factor in taxes and inflation, you are losing money... The lesson? Being safe and conservative does not build wealth
Superficial analysis coupled with a recommendation to pile on the stocks. No issues that Bogleheads aren't already aware of. For what it's worth:

The Truth About TSP F and G Funds
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Blues
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Re: The Truth About TSP F and G Funds

Post by Blues » Mon Jul 29, 2013 8:49 am

It's unfortunate that the victims of this sort of myopic and incomplete advice are those (by and large unsophisticated) investors that can least afford to follow it. I guess it would have been too much trouble to flesh out and present the big picture.
“Tactics without strategy is the noise before defeat.” - Sun Tzu | "Everybody has a plan until they get punched in the mouth." - Mike Tyson

Ricola
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Re: The Truth About TSP F and G Funds

Post by Ricola » Mon Jul 29, 2013 10:10 am

TSP G is for those that are more concerned with the return of their money, than the return on their money.

Default User BR
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Re: The Truth About TSP F and G Funds

Post by Default User BR » Mon Jul 29, 2013 12:44 pm

This is true of most fixed-income investments, especially in current conditions. You'll be lucky to keep up with inflation. Over the past few years, the G Fund has been particularly poor. However, it's looking a lot better now. It's finally caught up to the Stable-Value fund at MyMegaCorp as far as rate. From a peek at the Treasury yield curve, I expect that G will look even better in a few days.


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gkaplan
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Re: The Truth About TSP F and G Funds

Post by gkaplan » Mon Jul 29, 2013 1:58 pm

First Command?
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MnD
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Re: The Truth About TSP F and G Funds

Post by MnD » Mon Jul 29, 2013 2:17 pm

Horrible funds, just horrible! :mrgreen:

G Fund
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F Fund
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70/30 AA, Global market cap equity. Rebalance if FI <25% or >35%. Weighted ER< .10%. 5% of annual portfolio balance SWR, Proportional (to AA) withdrawals.

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gnosis
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Re: The Truth About TSP F and G Funds

Post by gnosis » Tue Jul 30, 2013 10:13 am

I might agree with just the last sentence in that quote. Being safe and conservative by heavily allocating into F fund and/or G fund do not build wealth. They help to maintain your wealth that you've acquired from riskier assets such as stocks

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