Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
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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
I honor my personality flaws, for without them I would have no personality at all.
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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
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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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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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Horrible funds, just horrible!
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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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