What is the rate of return on the TSP G fund? (2024)

What is the rate of return on the TSP G fund?

G Fund Returns

What is the rate of return on TSP funds?

Is TSP G fund a good investment?

The G Fund Yield Advantage—The G Fund rate calculation results in a long-term rate being earned on short-term securities. Because long-term interest rates are generally higher than short-term rates, G Fund securities usually earn a higher rate of return than do short-term marketable Treasury securities.

What is the best TSP fund to invest in?

The G Fund is often considered the safest option among TSP funds. It invests in U.S. Treasury securities, providing a stable return with minimal risk.

Which TSP fund has the best return?

The C Fund has grown 7.49% in 2024, marking the best performance among the TSP's core funds.

How safe is the TSP G fund?

A protected account is an investment account that can grow but cannot lose money. 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.

What is the TSP performance in 2024?

After a strong finish in December 2023, Thrift Savings Plan started 2024 with negative returns in January. After a strong finish in December 2023, Thrift Savings Plan started 2024 with three funds posting negative returns in January. The remaining 12 funds posted positive returns.

What is the most aggressive fund in the TSP?

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

Is TSP the best retirement?

TSPs and 401(k) plans are alike in giving employees tax advantages over other approaches to saving for retirement. For federal employees, TSPs' automatic contributions, higher employer matches and low fees probably make them a superior choice.

What happens to G fund when interest rates rise?

Also, when interest rates rise, the G Fund rate will rise right along with them — again, without the loss of principal that you would experience in the F Fund under the same circ*mstances. From this perspective, as far as bond funds go, the G Fund is still a better deal than just about anything else out there.

Does the TSP G fund beat inflation?

Better Than Inflation

Given that intermediate- and long-term bonds customarily carry real positive yields, it was highly unlikely that G Fund has trailed the rate of inflation since its 1987 launch. In fact, it has not. As the following chart shows, G Fund has easily outpaced the growth of the Consumer Price Index.

How often does the G fund pay interest?

The G Fund rate is set once a month by the U.S. Treasury based on a statutorily prescribed formula (described below), and all G Fund investments earn that interest rate for the month.

What does Dave Ramsey recommend for TSP?

Dave Ramsey's advice is to save 5% into the TSP to get the full match, then max out a Roth IRA, and then put more into the TSP if you are able to save more after that.

How to retire a millionaire with TSP?

Is TSP better than 401K?

A TSP and 401K are similar, but they have their distinct differences, too. If you are a Federal Government employee, a TSP is the better choice. It has lower fees, higher matching, and there are still many ways to customize it how you'd like with investments and withdrawal options.

What is the most conservative TSP fund?

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.

How much should I have in my TSP at 40?

Age 40—three times annual salary. Age 45—four times annual salary. Age 50—five times annual salary. Age 55—six times annual salary.

Can you be a millionaire from TSP?

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.

What is the alternative to the G fund?

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

What is the best thing to do with your TSP when you retire?

You can leave your TSP account intact and open an IRA or participate in your employer's retirement plan for new yearly contributions. This enables you to continue to save for retirement after TSP. If you want to learn more about the different options after TSP, check out our video.

What is the average TSP return per year?

The TSP C-Fund which approximates the S&P 500, has had an average annual 12.29 percent gain between 1988 and 2020; the TSP F-Fund, a broad index representing the U.S. bond market, has had an average annual 6.29 percent from 1988 to 2020; and the G-fund, long term U.S. Treasury notes, has had an average annual of 4.70 ...

Why is the TSP F fund losing money?

But the G Fund does not, the F fund does. It's down because the Federal Reserve has been raising interest rates. But those bonds, you know, even the corporate bonds, it doesn't mean they're not going to pay off. And it certainly doesn't mean that they're not paying interest, which they continue to do.

How many TSP withdrawals per year?

You may only take up to four age-59 ½ withdrawals per calendar year. If you have two separate TSP accounts—a civilian TSP account and a uniformed services account—you can only make age-59 ½ withdrawals from the account associated with your active employment at the time of your withdrawal.

How many TSP investors are millionaires?

As of year-end 2023 just under 117,000 TSP investors had $1 million or more in their accounts, an increase of some 40,000 during the year, another impact of the rebound in stock-based investment funds during the year making up for their losses of 2022.

What is the lowest risk TSP fund?

The G Fund is in fact guaranteed not to lose any money, and its standard deviation (zero percent) is by far the lowest of all funds.