Avoid the TSP F fund
Moderator: Aitrus
Avoid the TSP F fund
Unless you are making short term trades, there is no reason to be in the TSP F fund these days. The Fed is driving interest rates higher and this means capital losses to the F fund that will offset any yield.
The TSP G fund's interest rates has always been pretty close to the TSP F fund's yield. Only because interest rates have been in a down trend since the inception of the F fund has the F fund out-performed the G fund which incurs neither gains nor losses from interest rate movements.
The TSP G fund is earning about 2.4% interest presently similar to the TSP F fund yield. But the TSP F fund will incur a 5% capital loss for each 1% gain in interest rates. So a half a percent rise in rates wipes out the TSP F fund yield. It will have its ups and downs, but until the Fed reverses course, avoid the TSP F fund.
The stock market is less predictable and can gain or loss 2.4% or more in a day. But it the stock market correction rhymes with previous corrections it should retest its lows soon. Charts posted at TSP Charts: If this Correction Rhymes
Cheers,
The TSP G fund's interest rates has always been pretty close to the TSP F fund's yield. Only because interest rates have been in a down trend since the inception of the F fund has the F fund out-performed the G fund which incurs neither gains nor losses from interest rate movements.
The TSP G fund is earning about 2.4% interest presently similar to the TSP F fund yield. But the TSP F fund will incur a 5% capital loss for each 1% gain in interest rates. So a half a percent rise in rates wipes out the TSP F fund yield. It will have its ups and downs, but until the Fed reverses course, avoid the TSP F fund.
The stock market is less predictable and can gain or loss 2.4% or more in a day. But it the stock market correction rhymes with previous corrections it should retest its lows soon. Charts posted at TSP Charts: If this Correction Rhymes
Cheers,
- Tomanyiron
- Posts: 4973
- Joined: Mon Apr 26, 2010 6:39 am
Re: Avoid the TSP F fund
Do you think that's what causing the bulls to get cutoff at the legs about this time two days in a row?TSPsmart wrote: ...But if the stock market correction rhymes with previous corrections it should retest its lows soon...
"A good decision is based on knowledge and not on numbers." Plato
"Perfect numbers like perfect men are very rare." Rene Descartes
"Perfect numbers like perfect men are very rare." Rene Descartes
Re: Avoid the TSP F fund
I believe the G fund is earning 2.75% for the month of Feb.
from the TSP web page.
Current Rate and Amount Available
The current interest rate is: 2.750%
from the TSP web page.
Current Rate and Amount Available
The current interest rate is: 2.750%
Re: Avoid the TSP F fund
Golly thanks Mister! I hadn't thoughtnof that!
Those who 'abjure' violence can do so only because others are committing violence on their behalf.
Re: Avoid the TSP F fund
That is an annual rate. So February will get 1/12th of that.Moose wrote:I believe the G fund is earning 2.75% for the month of Feb.
from the TSP web page.
Current Rate and Amount Available
The current interest rate is: 2.750%
I also think you are looking at the loan rate, which is not necessarily tied to the G fund rate.
Owner/creator of TSPcalc.com - "Know your numbers"
Re: Avoid the TSP F fund
I believe the loan rate is tied to G, at the time of the loan origination. If I am right, folks may see a different rate depending on if they have a loan, and when that loan was taken.
Fund Prices2024-03-28
Fund | Price | Day | YTD |
G | $18.15 | 0.05% | 1.05% |
F | $19.08 | -0.06% | -0.74% |
C | $82.21 | 0.11% | 10.55% |
S | $82.43 | 0.30% | 6.92% |
I | $42.57 | -0.24% | 5.95% |
L2065 | $16.38 | 0.02% | 8.37% |
L2060 | $16.39 | 0.02% | 8.38% |
L2055 | $16.39 | 0.02% | 8.38% |
L2050 | $32.73 | 0.01% | 6.95% |
L2045 | $14.91 | 0.02% | 6.58% |
L2040 | $54.38 | 0.02% | 6.22% |
L2035 | $14.34 | 0.02% | 5.79% |
L2030 | $47.67 | 0.02% | 5.38% |
L2025 | $13.15 | 0.03% | 3.43% |
Linc | $25.61 | 0.03% | 2.82% |