Inflation’s affect on the TSP
Moderator: Aitrus
Inflation’s affect on the TSP
It’s been such a long time since inflation has been an issue, does anyone know how it will affect the different TSP’s funds?
Re: Inflation’s affect on the TSP
I suppose the answer to your question is, "it depends". The Fed seems to feel that this is an inflationary cycle that will not cause a trigger for rate increases. The Fed looks for a sustained 2% inflation rate and has stated that they don't see any rate increases until 2023. I don't think many investors are taking that as gospel. If the current inflationary signals continue (currently we are a little north of 4%), there will likely be a negative reaction by markets.
- Tomanyiron
- Posts: 4973
- Joined: Mon Apr 26, 2010 6:39 am
Re: Inflation’s affect on the TSP
G fund daily returns (7 days a week) should increase.
Re: Inflation’s affect on the TSP
Yup. I remember a time earlier this century when my local bank's checking account was returning 7% APR. If hyperinflation happens in a decade or so, it could be as high as 15-20% like between 1979-82.
Re: Inflation’s affect on the TSP
I remember getting my first car loan in 1982 that I though was a steal at 14%. My savings account was getting 10% interest. You could easily get double-digit Certificates of Deposit (CDs)... Inflation is a time when you want to have a stash of cash...
Re: Inflation’s affect on the TSP
Well I’m retired, no home or auto loans. A safe return of 4-5% in the G fund could actually be comforting. However what will groceries and utilities cost?
What about the F fund during higher inflationary periods?
What about the F fund during higher inflationary periods?
Fund Prices2024-04-17
Fund | Price | Day | YTD |
G | $18.19 | 0.01% | 1.25% |
F | $18.68 | 0.50% | -2.85% |
C | $78.62 | -0.58% | 5.72% |
S | $76.27 | -0.89% | -1.07% |
I | $40.66 | -0.17% | 1.19% |
L2065 | $15.60 | -0.47% | 3.17% |
L2060 | $15.60 | -0.47% | 3.18% |
L2055 | $15.60 | -0.47% | 3.18% |
L2050 | $31.39 | -0.35% | 2.57% |
L2045 | $14.34 | -0.33% | 2.47% |
L2040 | $52.43 | -0.31% | 2.41% |
L2035 | $13.87 | -0.28% | 2.31% |
L2030 | $46.25 | -0.25% | 2.24% |
L2025 | $12.93 | -0.12% | 1.78% |
Linc | $25.29 | -0.09% | 1.55% |