Thrift Savings Plan G Fund Monthly Returns Monthly Insights: Thrift Savings Plan Monthly Returns (2024)

FAQs

Thrift Savings Plan G Fund Monthly Returns Monthly Insights: Thrift Savings Plan Monthly Returns? ›

Basic Info. Thrift Savings Plan G Fund Monthly Returns is at 0.38%, compared to 0.33% last month and 0.35% last year.

The G Fund Yield Advantage—The G Fund rate calculation results in a long-term rate being earned on short-term securities. Because long-term interest rates are generally higher than short-term rates, G Fund securities usually earn a higher rate of return than do short-term marketable Treasury securities.

The TSP C-Fund which approximates the S&P 500, has had an average annual 12.29 percent gain between 1988 and 2020; the TSP F-Fund, a broad index representing the U.S. bond market, has had an average annual 6.29 percent from 1988 to 2020; and the G-fund, long term U.S. Treasury notes, has had an average annual of 4.70 ...

The TSP is not necessarily better or worse than other retirement plans. It is a retirement planning option for government employees and servicemembers similar to those available to employees in the private sector.

Basic Info. Thrift Savings Plan G Fund Monthly Returns is at 0.38%, compared to 0.33% last month and 0.35% last year. This is higher than the long term average of 0.37%.

The G-fund can be an incredible tool but is rarely the best option for your entire portfolio. Because everyone's situation is different, the best portfolio is invested in the mix of funds that matches your stage of life and financial situation, but almost always should include some stocks.

F Fund investors are rewarded with the opportunity to earn higher rates of return over the long term than they would from investments in short-term securities such as the G Fund.

There is no such thing as too much money in the Thrift Savings Plan. If you want your TSP balance to be able to generate an inflation-indexed annual income of $10,000, most financial planners will suggest that you have a $250,000 balance at the time you retire.

G Fund (Government Securities Investment Fund):

The G Fund is often considered the safest option among TSP funds.

How does the G fund work? ›

The value of G Fund securities does not fluctuate; only the interest rate changes. Thus, when the monthly G Fund interest rate goes up, G Fund earnings accrue faster; when the G Fund interest rate declines, G Fund earnings accrue more slowly.

Key points for successful investing in a TSP include taking full advantage of employer matching contributions to maximize returns, understanding the difference between traditional and Roth TSP options to optimize tax benefits and selecting an appropriate mix of the TSP's limited but diverse fund options (G, F, C, S, I ...

You might consider investing more in our stock funds (C, S, and I) than in the more conservative G and F Funds at this stage of your career. Stocks present more risk but offer the opportunity for potentially higher returns over time.

TSPs and 401(k) plans are alike in giving employees tax advantages over other approaches to saving for retirement. For federal employees, TSPs' automatic contributions, higher employer matches and low fees probably make them a superior choice.

Dave Ramsey's advice is to save 5% into the TSP to get the full match, then max out a Roth IRA, and then put more into the TSP if you are able to save more after that.

Better Than Inflation

Given that intermediate- and long-term bonds customarily carry real positive yields, it was highly unlikely that G Fund has trailed the rate of inflation since its 1987 launch. In fact, it has not. As the following chart shows, G Fund has easily outpaced the growth of the Consumer Price Index.

When inflation goes up, those TSP investors in the G Fund will see higher returns as the interest being paid on longer-term Treasury bills goes up. During a bull market, those in the G Fund will not receive the same return that stocks may provide.

Staying with the TSP

You can keep your TSP account after you separate from federal service as long as you have a vested balance of $200 or more. Many participants choose to keep their money in the TSP because of the TSP's low-cost funds.

The conservative funds are the G and F funds and the aggressive funds are the C, S, and I funds.