Quote:
Originally Posted by Texarkandy
What the Treasury does do for TSP is issue an exclusive non-marketable security especially for the G-Fund. There is a statutorily prescribed formula based on all marketable Treasuries that determines what the G-Fund earns.
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Well, call what you will. But when they're investing your money in 1-4 day maturity treasuries and guaranteeing you the yields of 11 yr avg maturity treasuries, with no risk of principal, I call that subsidization. That's the only way you can get that kind of special security.
Quote:
Originally Posted by Texarkandy
While TSP G-Fund has the objective of a higher return than inflation - I don't think there is any specific guarantee of that.
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Well yes, that may be the case but I can't imagine that you would lose out to inflation with the structure that they have set up. The bond markets would have to be seriously out of whack for quite a long time for that to happen. I'm no expert on TIPS though.
I was just pointing out the features and structure of the G fund that your OP didn't seem to reflect an understanding of. Hope I've helped. Sorry if I didn't. Maybe somebody with some more financial expertise like Brewer or Yrs to Go can help out.