nash031
Thinks s/he gets paid by the post
While I can see your point about taking risk in TSP, I think you're misleading yourself regarding the G fund. The value in the G fund is that it is basically guaranteed in all but extremely high inflation situations to match or beat inflation, and it has very low costs. There is no other fund out there that can guarantee its price will not fall, and has practically no risk. So, its yield has been low the last few years because inflation has also been low. Thus, the value of the G fund is for capital preservation.I'm kind of surprised so many people who responded consider the biggest asset of the TSP to be the G fund. It has historically performed better than any other similar interest bearing account, however, the yield over the last few years has been been lower than 2%. I'd consider the low cost other funds to be a lot better value than the G fund. Once you are within 5 years of retirement or fully retired I can understand the fear of losing part of your nest egg, but, for most of us, this is only a part of our retirement income. Our pensions are virtually risk free, so the TSP is a place to take some risks. But, again, each to his or her own investment process.
Now, is that enough to maintain a TSP account open? Probably won't be for me because I'll have a COLA pension to give me similar "guarantees" and I will be equity heavy in retirement assets, probably far more so than those who do not have a similar pension. As you said, personal preference...
Last edited: