G Fund at 3%

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Yankuba
Posts: 84
Joined: Wed Dec 07, 2016 10:45 am

G Fund at 3%

Post by Yankuba » Fri Aug 03, 2018 1:09 pm

https://www.tspfolio.com/tspgfundinterestrate

Hasn't been this high in a long time

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TierArtz
Posts: 325
Joined: Wed Jan 04, 2017 10:33 pm

Re: G Fund at 3%

Post by TierArtz » Fri Aug 03, 2018 1:51 pm

Thanks for posting that information! The TSP was opened to the military very late in my career, so I was not able to fund much. I avoided the G Fund like the plague (still do not like that the USA is a debtor nation) until BH comments on it made it appealing. Some days its the only winner in my portfolio :-)

Tdubs
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Re: G Fund at 3%

Post by Tdubs » Fri Aug 03, 2018 2:03 pm

Woo Hoo!

Ki_poorrichard
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Joined: Sun Aug 17, 2014 3:40 pm

Re: G Fund at 3%

Post by Ki_poorrichard » Fri Aug 03, 2018 2:23 pm

Nothing like the G fund... talk about having your cake and eating it too.
"We are never certain. We are always ignorant to some degree." - Peter L. Bernstein

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Yankuba
Posts: 84
Joined: Wed Dec 07, 2016 10:45 am

Re: G Fund at 3%

Post by Yankuba » Fri Aug 03, 2018 2:34 pm

When it hits 5% I'm moving my entire TSP portfolio to G. I'll keep my stocks in my taxable accounts. A guaranteed 5% is better than a hypothetical 6% to 8%

bayview
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Location: WNC

Re: G Fund at 3%

Post by bayview » Fri Aug 03, 2018 9:01 pm

It’s the closest thing to a stable value fund that I’ll ever see. It sorta kinda mostly matches or beats inflation, so I regard it is the world’s most liquid TIPS fund. (sorta kinda mostly)

It will pain me to draw it down via RMD’s. Even though I’ll pay the taxes from elsewhere and invest it, I’m not really sure what the equivalent would be.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

MnD
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Re: G Fund at 3%

Post by MnD » Sat Aug 04, 2018 8:11 am

The formula for the G-fund yield corresponds to roughly the YTM of a Treasury bond with 11 years duration.
Here's the constant maturity yield of the 10-year for the period the TSP G fund has been in existence for a decent approximation of the fund yield. This is weekly data and the G fund uses a monthly average so G fund would be a little less spikey.

Image
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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gmaynardkrebs
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Re: G Fund at 3%

Post by gmaynardkrebs » Sat Aug 04, 2018 8:59 am

Has anyone charted the growth of $10,000 in the G-Fund compared to a TIPS (VIPSX) fund over the years?

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