G Fund (2024)

FAQs

How is the G fund doing right now? ›

Thrift Savings Plan G Fund Monthly Returns is at 0.30%, compared to 0.35% last month and 0.20% last year. This is lower than the long term average of 0.37%.

The payment of G Fund principal and interest is guaranteed by the U.S. Government. This means that the U.S. Government will always make the required payments.

As a general rule, short-term money should be in more conservative investments like the G and F funds. Long-term money should be in more aggressive funds like the C, S, and I. These aggressive funds are going to be the key to doubling your TSP overtime.

The Aggressive Funds

The C, S, and I funds are the more aggressive of the funds in the TSP. The reason they are called “aggressive” is because they have a much higher chance of sustaining major growth over time. But because of this, they can also be much more volatile than the G and F funds.

These rules of thumb say you should have saved ... 2 to 3 times your income by age 40. 3 to 4 times your income by age 45.

To make equal contributions over the course of the 2023 calendar year (for 26 pay periods), you should contribute $866 each pay period. You should enter your election of $866 into myPay during December 4 – 10, 2022, and your election should be effective on December 18, 2022, the first pay period for 2023.

Average TSP account balances for Uniformed Service Members crested over $40,000 by the end of 2021, while balances for new 'Blended Retirement System' (BRS) participants reached close to $10,000 in just four years since the BRS became operational.

In 2023, every TSP Fund has a positive return. From the lowest return of 0.34% (G Fund) to the highest return of 10.82% (S Fund), all 15 TSP Funds provided positive returns.

Your catch-up contributions will be in addition to the 2023 TSP regular contribution limit, which means employees can contribute up to $30,000 in 2023. To maximize the catch-up contribution amount of $7,500 for 2023, employees will need to contribute an additional $288 per pay period ($7,500/26 = $288.46).

How do I maximize my TSP growth? ›

As an active TSP participant (a current federal civilian worker or member of the uniformed services), you're allowed to borrow money from your TSP account.

The G Fund (the G stands for Government Securities) is the only account in the TSP that is a protected account. It's a popular choice since your money is safe from market downturns.

Just like nominal bonds, G fund will outpace inflation during periods of expected inflation, and disinflation/deflation. However, unlike nominal bonds, G fund does not lose value in a rising rate (rising inflation) environment.

Federal employees who are members of the Thrift Savings Plan (TSP) have the potential of becoming a TSP millionaire, with a fat nest egg in addition to their CSRS or FERS annuity. As of November 2022, there are 65,000 TSP millionaires.

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.

However, the L Income Fund is the most conservative of the L Funds. It focuses on money preservation while providing a small exposure to the riskier funds (C, S, and I Funds) in order to reduce inflation's effect on your purchasing power.

This means that if you make $100,000 shortly before retirement, you can start to plan using the ballpark expectation that you'll need about $75,000 a year to live on in retirement. You'll likely need less income in retirement than during your working years because: Most people spend less in retirement.

Retiring at 50 is an excellent opportunity to enjoy the years ahead without worrying about work and $4 million is a reasonable amount to make it possible. The initial nine and a half years may be difficult since federal penalties bar access to your retirement account.

July is Best Month for TSP Performance Since Trump Administration: One Fund Up 10.32% TSP performance in July was a bright spot in a dismal year for TSP fund returns.

What is the best mix of TSP funds? ›

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.

Your TSP account is a portable retirement benefit. This means that when you withdraw your account, you can have the TSP transfer part or all of your single pay- ment or certain monthly payments to a traditional IRA or an eligible employer plan (for example, the 401(k) plan of a new employer).

Depending on when you begin retirement, you can simply leave the money in the TSP let it continue to grow. If you do not need to access it yet, it might be wise to let it be. Similar to other retirement accounts, you will need to begin minimum withdrawals at age 72. This is called a Required Minimum Distribution (RMD).

Maximizing Agency or Service Contributions

To receive the maximum Agency or Service Matching Contributions, you must contribute 5% of your basic pay each pay period.

Average TSP account balances for FERS participants reached $156,702.00, while average balances for CSRS participants reached $174,679.00 as of October 2022. Average TSP account balances for FERS participants reached $21,302.00, while average balances for CSRS participants reached $29,075.00 as of October 2022.

If you over contribute, you may request a refund of the excess amount from the TSP. For a limited in January each year, we make the Refund Request Form available. You can get the form by calling the ThriftLine or logging in to My Account. We must receive your excess deferral refund request no later than March 15.

Catch-up contributions should not be dismissed.

They can be crucial if you are just starting to save for retirement in middle age or need to rebuild retirement savings at mid-life. Consider making them; they may make a significant difference for your savings effort.

Knowing this limit helps you decide how much to put away each year. Additionally, this limit does not include matching contributions. If you're eligible for an agency or service match, you're actually saving more.

You should designate a person or persons, your estate, or a trust to receive your TSP account after your death. To designate a beneficiary or beneficiaries, log in to My Account. For us to honor it, your beneficiary designation must be on file with us at the time of your death.

Eligible rollover distributions of your traditional balance may be rolled over to a traditional IRA, an eligible employer plan, or a Roth IRA. taxed in the current year, and no income tax will be withheld. You won't be taxed on this money until you withdraw it from the traditional IRA or the eligible employer plan.

Should I leave my TSP alone? ›

Consider leaving your funds in the TSP unless you don't want to deal with extra paper work or you want more investment options. Otherwise, consider rolling your TSP account assets into your new 401(k) plan if you have one, or one of the other following options.

In most cases $300,000 is simply not enough money on which to retire early. If you retire at age 60, you will have to live on your $15,000 drawdown and nothing more. This is close to the $12,760 poverty line for an individual and translates into a monthly income of about $1,250 per month.

A TSP loan is often the better option because you won't owe taxes or a penalty and you will get the money back into your account once you pay it back. But remember, the true cost of a TSP loan is not the $50 loan fee.

There are two types of TSP loans: general purpose loans and primary residence loans. A general purpose loan can be used for any purpose, including buying or building a house. And you don't have to provide any supporting documentation when you apply.

Typically, another disadvantage of getting a TSP loan is that the term lengths are usually 15 years or less to repay them. On larger loans of say $50,000, this can make the payments relatively high and take a big chunk out of your monthly budget to live.

Thus, there is no “credit risk.” 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.

By this measure, the I Fund is the riskiest, with a maximum drawdown of -60.89%, which occurred during the 2008-2009 global financial crisis.

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

The G Fund provides a higher interest yield rate than the F Fund, but the G Fund can lose significant value during a rise in interest rates. The F Fund does not lose significant value during an interest rate rise, but its interest yield rate currently is lower than G Fund.

Is the G fund suspended? ›

Plan news. G Fund and the debt limit — As of January 23, 2023, the U.S. Treasury was unable to fully invest the Government Securities Investment (G) Fund due to the statutory ceiling on the federal debt. However, G Fund investors remain fully protected and G Fund earnings are fully guaranteed by the federal government.

Every Thrift Savings Plan fund scored positive returns in January, starting out 2023 on a good note for federal investors. The biggest winner was the small cap stock index S Fund, with a return of 10.82%.

The decline in G Fund returns is not because the government has gotten stingy, it is a combination of historically lower inflation and interest rates. For example, if you got a mortgage back in 1990, you would have had an interest rate of around 10%.

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 safest TSP fund? The G fund is generally the safest option as it invests in government securities. Although you won't lose money investing in this fund, your rate of return will be low. This may be a good option if you are close to retirement.

The G Fund invests in special non-marketable U.S. Treasury 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.

Thrift Savings Plan C Fund Monthly Returns is at 1.56%, compared to 3.67% last month and -8.72% last year. This is higher than the long term average of 0.93%.

TSP Stock 12 Months Forecast

Based on 1 Wall Street analysts offering 12 month price targets for TuSimple Holdings in the last 3 months. The average price target is $2.20 with a high forecast of $2.20 and a low forecast of $2.20. The average price target represents a 67.94% change from the last price of $1.31.

While they may not have as many funds to choose from, TSP participants do have one big advantage over most 401(k) investors: lower fees. The total expense ratio, which covers both investment and administrative fees, is 0.066% for individual TSP funds.