Vanguard Equiv for the G Fund

General TSP Discussion.

Moderator: Aitrus

Post Reply
Ella
Posts: 5
Joined: Sun Jan 03, 2016 7:23 pm

Vanguard Equiv for the G Fund

Post by Ella »

I'm practicing the Seasonal strategy this year and have money in Vanguard (VG). What would be a VG fund that would be close to the G Fund? I know that the G Fund is specific to the TSP, but I would think that VG has something close.

I appreciate any advice. Thank you.

User avatar
galveston1
Posts: 148
Joined: Tue Aug 16, 2016 5:29 pm

Re: Vanguard Equiv for the G Fund

Post by galveston1 »

VFISX - Short-Term Treasury. But the expense ratio is 0.20%.
In investing, what is comfortable is rarely profitable

paul
Posts: 44
Joined: Mon Dec 13, 2010 6:06 pm

Re: Vanguard Equiv for the G Fund

Post by paul »

You could use their mutual fund as your cash equivalent.
I am not familiar with the seasonal strategies, but their rules for trading are even more restrictive than TSP. The last time I checked (a few years ago), if you want to make a 2nd trade within 2 months you have to send a request via snail mail.

aseamon
Posts: 7
Joined: Wed Jan 04, 2012 2:12 pm

Re: Vanguard Equiv for the G Fund

Post by aseamon »

I disagree, G fund doesn't lose money, VFISX will and often does.

rlinehan
Posts: 96
Joined: Tue Jul 23, 2013 7:37 pm

Re: Vanguard Equiv for the G Fund

Post by rlinehan »

There is no equivalent to the G Fund – anywhere:

http://money.federaltimes.com/2010/05/0 ... -benefits/

http://gubmints.com/2015/01/12/4-reason ... M-fc6Lavcs

The fund mentioned above by another commenter, VFISX, has had a total return of only 0.38% over the past year, compared to the G Fund’s 1.90%. Its TTM yield is a mere 0.89%.

And, as another commenter mentioned above, VFISX can post negative returns, while the G Fund is guaranteed never to lose money.

As the second article linked above notes, the closest equivalents to the G Fund are CDs, specifically those of 5-year terms, some of which currently yield much more than the G Fund:

http://www.bankrate.com/cd.aspx?ic_id=C ... 6,19,27,28

For lists of low-risk bond funds, including those offered by Vanguard, see:

http://www.kiplinger.com/article/invest ... -2017.html

http://news.morningstar.com/articlenet/ ... ?id=795074

Check out VFSTX, which has had a 1.92% TTM yield and a total return of 2.14% over the past year.

Note, though, that it, too, can post negative returns over short periods of time.

Scorpio70
Posts: 432
Joined: Thu Dec 24, 2015 11:49 am

Re: Vanguard Equiv for the G Fund

Post by Scorpio70 »

I am leaving my Vanguard monies all in with the Total Market Admiral shares. Over time I figure that money can be buy and hold.

JDD4J4J
Posts: 48
Joined: Thu Jan 05, 2012 2:21 pm

Re: Vanguard Equiv for the G Fund

Post by JDD4J4J »

I recommend taking advantage of the benefits you earned through federal employment and if applicable complete a TSP-60 to transfer your Vanguard funds into TSP. You will be able to invest into any of the TSP funds, including if you would like to, secure it in Government Securities Investment Fund, G fund, where it is guaranteed interest return.

Ella
Posts: 5
Joined: Sun Jan 03, 2016 7:23 pm

Re: Vanguard Equiv for the G Fund

Post by Ella »

Thanks everyone for opinions and advice. I'll do some thinking and research. I have thought about moving the money to TSP, but TSP is so restrictive for taking money out.

JDD4J4J
Posts: 48
Joined: Thu Jan 05, 2012 2:21 pm

Re: Vanguard Equiv for the G Fund

Post by JDD4J4J »

That is a concern of TSP, however most people are not just going through retirement by the seat of their pants. They have a plan of what they are doing. TSP allows you to take a partial withdrawal at separation, if needed, such as to pay off debt. Then pays you the remainder broken down as a monthly maintenance payment for generally the following 26 years. Though, once a year, you can submit a request to have the monthly payment amount change the following January if you choose.

User avatar
TSPsmart
Posts: 212
Joined: Fri Nov 14, 2014 12:24 pm

Re: Vanguard Equiv for the G Fund

Post by TSPsmart »

I agree that there is no other fund like the TSP G fund. Once you are near or in retirement it becomes a greater benefit since you should be keeping more of your nest egg in low risk funds.

Too many investors compare the past returns of funds to judge them. You can not do that with fixed income funds. The G fund is better than any bond fund including the TSP F fund.

If you have non-TSP accounts, you could transfer money into the TSP fund. Or you could look at your two accounts holistically and over-weight the G fund in the TSP account and over-weight your equity investing in your non-TSP account. Assuming you have enough in both accounts to meet your needs.

Cheers

Post Reply

Fund Prices2024-03-28

FundPriceDayYTD
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%

Live Charts

Pending Allocations

Under development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".