What is the current TSP G Fund interest rate? (2024)

FAQs

What is the current TSP G Fund interest rate? ›

Thrift Savings Plan G Fund Monthly Returns is at 0.30%, compared to 0.35% last month and 0.20% last year.

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.

For the past 12 months, it gained 10.19%. So far in 2023, it has gained 11.74%. As noted in a recent article, only 3.7% of TSP investor funds are invested in the I Fund. It is easy to see why this is the case.

TSP Performance Up in March and Year-to-Date in 2023

The C Fund is up 7.49% so far in 2023. The Fund with the best return so far this year is the I Fund which is up 8.63%. Some investors will note that the I Fund is near the bottom in popularity among TSP investors. 3.6% of participant allocation goes into the I Fund.

The G fund and the Lifecycle Income Fund are the only ones with positive returns across the last 12 months, at 3.19% and 0.78%, respectively.

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.

Generally, the prime rate is about 3 percent higher than the federal funds rate. That means that when the Fed raises interest rates, the prime rate also goes up. The prime rate is the rate at which individual banks and credit unions lend to their customers, including large corporations.

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.

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).

In a nutshell, Ramsey advises federal employees to invest at least 5% in a Roth TSP, then invest the rest in a Roth IRA. He also recommends investing in a handful of TSP funds -- funds C,S, and I -- with a higher percent in the C Fund (at least 60 to 80%).

When should I change my TSP for 2023? ›

To contribute the 2023 maximum annual amount for both regular TSP and TSP Catch-up for a combined total of $30,000, you should enter one election amount of $1,154 into myPay during December 4 – 10, 2022, and your election should be effective on December 18, 2022, the first pay period for 2023.

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.

Average TSP balances

As of 2021, the average TSP balance for FERS participants was $181,279, while the average TSP balance for CSRS participants was $194,424. As of October 2022, there was a decline in the average TSP balances for both FERS and CSRS participants.

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 maximum contribution rates in 2023 will be: $22,500 for regular TSP or 401(k) contributions (up from $20,500 in 2022) $7,500 for catch-up contributions for those 50 and over. $6,500 for Individual Retirement Account (IRA) holders, up from $6,000.

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.

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.

Taking a loan from your TSP is a bad idea. The money you're putting into your TSP is for retirement, not for buying a new car. If you leave federal employment with an outstanding TSP loan you have to pay back the full loan balance within 90 days.

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.

So far in 2023, the Fed raised rates 0.25 percentage points twice. If they hike rates at the May meeting, it is likely to be another 0.25% jump, meaning interest rates will have increased by 0.75% in 2023, up to 5.25%.

Will interest rates go down in 2023? ›

Mortgage rates are likely to decrease slightly in 2023, although they're highly unlikely to return to the rock-bottom levels of 2020 and 2021. However, rate volatility may continue for some time.

Today's national mortgage interest rate trends

If you're looking to refinance, today's national average 30-year refinance interest rate is 7.12%, down 3 basis points compared to this time last week. In addition, today's average 15-year fixed refinance interest rate is 6.47%, falling 12 basis points over the last week.

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.

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.

Here are a few opinions. In The Elements of Investing: Easy Lessons for Every Investor , Burton Malkiel recommends these age-based asset allocations: 20-30s – bonds 10-25%, stocks 75-90% 40-50s – bonds 25-35%, stocks 65-75%

If you're a FERS or eligible BRS participant, you receive Agency/Service Matching Contributions on the first 5% of pay you contribute every pay period. The first 3% is matched dollar-for-dollar by your agency or service; the next 2% is matched at 50 cents on the dollar.

It depends, but most people should contribute to their TSP at least up to the matching funds limit (3% of your salary). Beyond this, the TSP is better if your taxes are high today and you expect them to be much lower in retirement. It is better to use your deduction against the higher tax rate.

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.

Basically we divide 72 by our estimated rate of return to find out how many years it will take to double. So if our rate of return is 9%/year then it would take 8 years for our money to double. So if you had $300,000 in your TSP it would take 8 years to turn into $600,000 with an average return of 9%/year.

Many participants choose to keep their money in the TSP because of the TSP's low-cost funds. And you can always move money into your TSP account by making rollovers from eligible employer plans and from traditional IRAs. You always control how your money in the TSP is invested, even if you aren't making contributions.

How often do you have to rebalance your TSP? ›

To maintain each L Fund's target allocation, we rebalance it at the end of every trading day. We do this by buying and selling the individual funds that make up the L Fund so that the percentages go back to what they were at the beginning of the day.

Pros – Your money can continue to be invested and may grow in value over time. Cons – You are limited in your investment choices – you can only invest in the specific funds in the TSP.

TuSimple Holdings Inc (NASDAQ:TSP)

The 4 analysts offering 12-month price forecasts for TuSimple Holdings Inc have a median target of 3.60, with a high estimate of 10.36 and a low estimate of 2.00. The median estimate represents a +121.54% increase from the last price of 1.63.

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.

The rule of 55 is an IRS provision that allows workers who leave their job for any reason to start taking penalty-free distributions from their current employer's retirement plan once they've reached age 55.

When interest rates are rising, both businesses and consumers will cut back on spending. This will cause earnings to fall and stock prices to drop. On the other hand, when interest rates have fallen significantly, consumers and businesses will increase spending, causing stock prices to rise.

Higher interest rates make it more expensive for people to borrow money and encourage people to save. Overall, that means people will tend to spend less. If people spend less on goods and services overall, the prices of those things tend to rise more slowly. Slower price rises mean a lower rate of inflation.

The financial sector has historically been among the most sensitive to changes in interest rates. With profit margins that actually expand as rates climb, entities like banks, insurance companies, brokerage firms, and money managers generally benefit from higher interest rates.

This results in a decrease in the Net Asset Value (NAV) of debt mutual funds as the value of their underlying assets declines. In addition, when interest rates rise, the returns offered by new bonds issued in the market increase, making the existing bonds held by the mutual fund less attractive to investors.

And when the Fed raises its target rate, banks typically follow suit and increase their interest rates—including those on CDs. That's because when the Fed's target rate goes up, the cost of borrowing from other banks increases.

Is Fed going to raise interest rates again? ›

On Wednesday, the Federal Reserve is expected to raise its benchmark interest rate for the 10th consecutive hike since March 2022 as part of its campaign to temper the hottest inflation in four decades.

“The winners tend to be people who have high savings, and obviously benefit from high interest rates,” Oliver says. “The losers tend to be those with net debt. Those with more net debt tend to suffer because they pay more on interest rates servicing that debt.

'I believe by the end of 2023 we will see rates start to fall with a target of between 2.5 to 3 per cent in 2024. 'I believe if the base rate can get back to circa 2.5 per cent, then we will see rates hovering around that mark with a return to products that have not been seen in the mortgage industry for some time.'

Rate hikes could make it more difficult for older Americans to retire and for current retirees to stay retired. Here's why: Dips in 401(k)s and IRAs. Interest rate hikes usually result in tumbling stocks (the S&P 500 is down about 20% from its 2022 peak), which can play havoc with retirement accounts.

As a general rule of thumb, when the Federal Reserve cuts interest rates, it causes the stock market to go up; when the Federal Reserve raises interest rates, it causes the stock market to go down. But there is no guarantee as to how the market will react to any given interest rate change.

Conclusion. Interest rates are a charge on borrowing money, but also a credit for saving money. High inflation leads central banks to raise the interest rates, and this has a domino effect on companies. High interest rates tend to negatively affect corporate earnings and hence stock prices.

Will CD rates go up in 2023? The answer is already yes. At both the January and the March 2023 Federal Open Market Committee (FOMC) meeting, the Fed raised interest rates by a quarter of a percentage point.

With shorter–term funds, the chances of drastic movements in interest rates are also lower. If you want to minimize the risks posed by interest rate fluctuations, then it may be a good idea to invest in short and medium-term debt funds rather than long-term ones when interest rates rise.