FAQs
Thankfully, there's an alternative to the G Fund that offers both good returns and protection from market downturns. Our Guaranteed Lifetime individual retirement account (IRA) offers the safety of the G Fund with the potential for higher returns. It's like the G Fund on steroids.
What is the alternative to the G fund? ›
The G Fund invests in special non-marketable U.S. Treasury government securities issued by the U.S. government for the TSP. So, the suggestion here is to use Short-Term Treasury index funds. But these are not guaranteed, so an alternative is to get a CD with a comparable interest rate of 1-2 percent.
What is the safest fund for TSP? ›
The G Fund is invested in U.S. Treasury securities specially issued to the TSP. Payment of principal and interest is guaranteed by the U.S. government. Thus, there is no “credit risk.”
Which is better, the F fund or the G fund? ›
In periods of falling interest rates, the F Fund will experience gains from the resulting rise in bond prices. So in the long run, you may expect F Fund returns to exceed those of the G Fund; however, you should also expect greater price volatility (up and down movements).
What is the most conservative TSP fund? ›
The fifth core fund, the G Fund, invests in very low-risk, low-yield government bonds and guarantees principal protection to investors. The G Fund is intended for very conservative investors.
Should I put all my money in the G fund? ›
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.
What is the current interest rate for the G fund? ›
Thrift Savings Plan G Fund Monthly Returns is at 0.38%, compared to 0.33% last month and 0.35% last year.
Is the TSP G fund FDIC insured? ›
It is also important not to deplete your retirement investments by taking large withdrawals too early in your retirement. Even the G Fund (which invests in government securities) isn't protected by the FDIC. But under federal law, the payment of G Fund principal and interest is guaranteed by the U.S. government.
What is a good TSP balance at retirement? ›
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.
What happens to the G fund when interest rates rise? ›
Although the securities in the G Fund earn a long-term interest rate, the Board's investment in the G Fund is redeemable on any business day with no risk to principal. The value of G Fund securities does not fluctuate; only the interest rate changes.
Your best bet is to stick with the C, S and I Funds. Here's the ratio we recommend for your portfolio: 80% in the C Fund, which is tied to the performance of the S&P 500. 10% in the S Fund, which includes stocks from small- to mid-sized companies that offer high risk and high return.
What is the best TSP fund to invest in 2024? ›
The C Fund has grown 7.49% in 2024, marking the best performance among the TSP's core funds. The small- and mid-size businesses of the S Fund posted the strongest numbers in February, gaining 6.03%. That's good enough to bring the fund 3.48% into the black in 2024.
What is the most secure TSP fund? ›
The G Fund is often considered the safest option among TSP funds.
Should I use the L fund in TSP? ›
You should consider investing in the L Income Fund if you were born before 1961, are currently withdrawing money from your TSP account, or you plan to begin withdrawing money this year. Am I ok with market and inflation risk? The L Income Fund can have periods of gain and loss, just as the individual TSP funds do.
What is the L 2025 fund in TSP? ›
The L 2025 Fund's investment objective is to achieve a moderate level of growth with a moderate emphasis on preservation of assets. The Fund's allocation in the G, F, C, S, and I Funds is adjusted quarterly.
Is the TSP G fund a good investment? ›
Long-Term Rates and Short-Term Security
The way the interest rate is calculated on the G Fund, along with investing in short-term maturities, gives TSP investors the advantage receiving longer-term rates. In plain English, you get a very good deal the rest of America's investors do not get. Short-term notes are safer.
