New federal retiree transfer TSP balance question

[jgman]

What does Schwab offer that is comparable to the TSP G fund?

Unfortunately nothing. It has MM funds around .03 percent LOL

 

[FLSUnFIRE]

G fund might get more lucrative too, about 40% of the TSP (best info I could find was a year ago) is in the G fund. If inflation stays hot, there will be pressure for the G fund to meet/beat inflation -I would not be surprised if this "Transitory" inflation stays around that the Fed employee unions put pressure to increase the rate. Lifecycle funds in the "income" range are really going to feel a hurting if the high-fixed income proportion is eaten by inflation and people will complain.


I intend to keep most in TSP and will start SEPPs from it in the next couple years (may roll over a portion depending on the balance when I start the SEPP. That TSP offers a qualifying SEPP option (I can't really screw it up unless I stop it) and issues a 1099 with qualified distribution is appealing to me. Customer service sucks but my interactions will be minimal once they push the right buttons in the computer.

 

[Redbugdave]

Sounds like you are overthinking this. Your first step was the answer. After the crash you exchange enough of your G fund for equities to bring your total portfolio back into your desired 70/30 AA. Problem solved. After the market recovers, you reverse the process and exchange enough of your TSP C fund for G to restore the 70/30 AA. Problem two solved. Assuming the market roars you might eventually get back to 100 G in the TSP and even have to move some of your Schwab equities into bonds to keep the 70/30 AA.

You and I think alike. That has been my process, too. Going on 8 years, now. I shuffle back and forth in the TSP.

 

[jazz4cash]

G fund might get more lucrative too, about 40% of the TSP (best info I could find was a year ago) is in the G fund. If inflation stays hot, there will be pressure for the G fund to meet/beat inflation -I would not be surprised if this "Transitory" inflation stays around that the Fed employee unions put pressure to increase the rate. Lifecycle funds in the "income" range are really going to feel a hurting if the high-fixed income proportion is eaten by inflation and people will complain.

That’s a good point I never thought of. Come to think of it I never actually knew how the rate is calculated. Here it is:

“The G Fund, by law, is invested in special non-public interest-bearing Treasury securities obligations. The interest rate of these securities resets monthly and is based on the weighted average yield of all outstanding Treasury notes and bonds with 4 or more years to maturity. So, the G Fund interest rate tracks interest rates in the U.S.,” Kim Weaver, director of External Affairs for the Federal Retirement Thrift Investment Board, the organization that manages the TSP, said in an email”

That is a outstanding deal. You’re getting a short term rate based on a weighted average of longer term rates. As you suggest that bodes well for the G rate to rise as rates react to inflation. I don’t believe the Fed Govt unions will have any influence on this. The Best they can do is keep Congress from withdrawing these special securities as an option. Here is the source for the quote: (the article is poorly titled, IMO)

https://federalnewsnetwork.com/tsp/...or-30-years-belying-reputation-for-stability/