G Fund

[Ehac]

Hello everyone,

I am so excited to be here. I just want to confirm that the G Fund is the most reasonable for now due to the current market?

Regards,
Joseph

[wingchaser]

Hello everyone,

I am so excited to be here. I just want to confirm that the G Fund is the most reasonable for now due to the current market?

Regards,
Joseph

EHAC:

Welcome, welcome…

That’s a loaded question & you’re bound to get a varying degrees of answers to that posturing based on

-CURRENT MARKET CONDITIONS
-YOUR AGE & REASONABLE DEGREES OF EXPOSURE
…etc.

Short answer, YES the G FUND is a SAFE haven with this kinda’ market volatility…

Best of Luck (everyone) in all you choose to endeavor!!!

[Ehac]

Hello everyone,

I am so excited to be here. I just want to confirm that the G Fund is the most reasonable for now due to the current market?

Regards,
Joseph

EHAC:

Welcome, welcome…

That’s a loaded question & you’re bound to get a varying degrees of answers to that posturing based on

-CURRENT MARKET CONDITIONS
-YOUR AGE & REASONABLE DEGREES OF EXPOSURE
…etc.

Short answer, YES the G FUND is a SAFE haven with this kinda’ market volatility…

Best of Luck (everyone) in all you choose to endeavor!!!

Hello Wingchaser,

Thank you for the feedback. This is my first time in the weeds. A very low exposure.

Regards,
Joseph

[Aitrus]

One of the things to keep in mind about the G Fund is that it's safe, but it doesn't keep up with inflation. Your money loses buying power over time if you stay invested in the G Fund for long periods. Better to think of it as a safe place to stash your TSP money when the market looks too squirrelly for comfort, and that level of comfort is different for each investor.

[Ehac]

One of the things to keep in mind about the G Fund is that it's safe, but it doesn't keep up with inflation. Your money loses buying power over time if you stay invested in the G Fund for long periods. Better to think of it as a safe place to stash your TSP money when the market looks too squirrelly for comfort, and that level of comfort is different for each investor.

Hello Aitrus,

Thank you so much! Initially, I distributed funds to the S Fund but lost quite a bit within the past week or so. Until, I landed on this site and everything changes. Someone had posted, because of the current market, invest 100 percent in the G fund. I thought that was a smart move but when can I invest in other funds in the future? I really want to invest wisely!

Regards,
Yusuf

[Aitrus]

You ask a difficult question, Ehac. Yes, you can invest in other Funds in the future, but when you do so depends on a number of factors, such as your personal risk tolerance, the parts of the market you wish to invest in, etc. In a way, "invest wisely" is a subjective term because what works for me at my stage of my life and career may not work for you. That said, take comfort in the fact that you're at least interested and are willing to learn, which is more than a lot of other people.

It sounds like you're still in the process of learning about TSP. I'm going to recommend that you take some time to read the first few posts of my Seasonal Musings thread (link in my signature below). The thread is mostly information about a particular approach to investing that is widely discussed here on TSPCenter. However, for your purposes I think it's best if you learn some of the basics about the Funds themselves, what parts of the market they track, and how they perform. I recommend you read is up to the post when I begin detailing the first Mix that I discuss in the thread, which is Jahbulon's Basic Mix. There will be a lot of Seasonal Strategy information in those posts as well, but focus more on information about investing in general and the Funds themselves.

By the way, you asked "when" can you invest in other Funds. The answer is that TSP has a rule that you can make only two IFT moves per month to any Fund, and after that can move only to the G Fund. For example, you can be in the G Fund on the 1st trading day of the month, move to S on the 2nd, and move to F on the 3rd. That's your two moves. Any further moves must be to the G Fund. In addition, you don't have to move 100% of your money. You can be 25% F, 50% C, 25% S, and decide to change that to 25% F, 50% C, and 25% I. That would count as one of your two IFTs for the month. So you can move right at the beginning of the month, or wait until the very end. When you use your IFTs is up to you.

[Scarfinger]

One of the things to keep in mind about the G Fund is that it's safe, but it doesn't keep up with inflation. Your money loses buying power over time if you stay invested in the G Fund for long periods. Better to think of it as a safe place to stash your TSP money when the market looks too squirrelly for comfort, and that level of comfort is different for each investor.

Hello Aitrus,

Thank you so much! Initially, I distributed funds to the S Fund but lost quite a bit within the past week or so. Until, I landed on this site and everything changes. Someone had posted, because of the current market, invest 100 percent in the G fund. I thought that was a smart move but when can I invest in other funds in the future? I really want to invest wisely!

Regards,
Yusuf

Long term and easy. Put at least 5% in to get the full match. Increase total contributions to at least 10% over time. If you can, get it up to 15%. Just put it in your target date fund. Check it in 30 years and you should have 500K to 1 million?

[wingchaser]

One of the things to keep in mind about the G Fund is that it's safe, but it doesn't keep up with inflation. Your money loses buying power over time if you stay invested in the G Fund for long periods. Better to think of it as a safe place to stash your TSP money when the market looks too squirrelly for comfort, and that level of comfort is different for each investor.

Hello Aitrus,

Thank you so much! Initially, I distributed funds to the S Fund but lost quite a bit within the past week or so. Until, I landed on this site and everything changes. Someone had posted, because of the current market, invest 100 percent in the G fund. I thought that was a smart move but when can I invest in other funds in the future? I really want to invest wisely!

Regards,
Yusuf

Long term and easy. Put at least 5% in to get the full match. Increase total contributions to at least 10% over time. If you can, get it up to 15%. Just put it in your target date fund. Check it in 30 years and you should have 500K to 1 million?

Nice!!!

Though you forgot to add, “Get the heck of G & stay long-term in the C”, if you can’t regulary beat the Buy-and-hold strategies…

Don’t even try!!!

Best of Luck (everyone) in all you choose to endeavor!!!

[Ehac]

You ask a difficult question, Ehac. Yes, you can invest in other Funds in the future, but when you do so depends on a number of factors, such as your personal risk tolerance, the parts of the market you wish to invest in, etc. In a way, "invest wisely" is a subjective term because what works for me at my stage of my life and career may not work for you. That said, take comfort in the fact that you're at least interested and are willing to learn, which is more than a lot of other people.

It sounds like you're still in the process of learning about TSP. I'm going to recommend that you take some time to read the first few posts of my Seasonal Musings thread (link in my signature below). The thread is mostly information about a particular approach to investing that is widely discussed here on TSPCenter. However, for your purposes I think it's best if you learn some of the basics about the Funds themselves, what parts of the market they track, and how they perform. I recommend you read is up to the post when I begin detailing the first Mix that I discuss in the thread, which is Jahbulon's Basic Mix. There will be a lot of Seasonal Strategy information in those posts as well, but focus more on information about investing in general and the Funds themselves.

By the way, you asked "when" can you invest in other Funds. The answer is that TSP has a rule that you can make only two IFT moves per month to any Fund, and after that can move only to the G Fund. For example, you can be in the G Fund on the 1st trading day of the month, move to S on the 2nd, and move to F on the 3rd. That's your two moves. Any further moves must be to the G Fund. In addition, you don't have to move 100% of your money. You can be 25% F, 50% C, 25% S, and decide to change that to 25% F, 50% C, and 25% I. That would count as one of your two IFTs for the month. So you can move right at the beginning of the month, or wait until the very end. When you use your IFTs is up to you.

Thank you

[Horaenaut]

Just a little tip though--Moving to the G fund after a big downturn essentially "locks in" a loss, because you are not riding with the market funds when they go back up. So if you are jumping to a low risk fund (like G), you also won't make your money back. You've sold your shares and cashed out low.

This is a smart thing to do if you think the market funds are going to keep going down. This is not a good thing to do if you think they are nearing the bottom. Because of inflationary pressures (among many other things) the market almost always trends up. As others said, if you are not trying to time things, and you have awhile until retirement, it is *probably* better to stay in the market funds (C and S specifically). If you are going to watch closely, learn about systems that might reduce risk/maximize gains, then hopping back and forth might be for you.

Just know that if your system is: be in the S/C until it loses significantly and then jump to the G until the market is back up then you are selling low (locking in the loss) and buying high (getting expensive shares) and you will lose money.

I don't have a better system, but I love when the market goes down because it means the S/C are on sale. I like to keep some in the G to move over for big downturns like this and the rest just rides in the C/S (until I feel like we are nearing peak euphoria) because I have at least 20 years until retirement. I am way worse at timing market peaks than I am at timing market bottoms.

[Ehac]

Just a little tip though--Moving to the G fund after a big downturn essentially "locks in" a loss, because you are not riding with the market funds when they go back up. So if you are jumping to a low risk fund (like G), you also won't make your money back. You've sold your shares and cashed out low.

This is a smart thing to do if you think the market funds are going to keep going down. This is not a good thing to do if you think they are nearing the bottom. Because of inflationary pressures (among many other things) the market almost always trends up. As others said, if you are not trying to time things, and you have awhile until retirement, it is *probably* better to stay in the market funds (C and S specifically). If you are going to watch closely, learn about systems that might reduce risk/maximize gains, then hopping back and forth might be for you.

Just know that if your system is: be in the S/C until it loses significantly and then jump to the G until the market is back up then you are selling low (locking in the loss) and buying high (getting expensive shares) and you will lose money.

I don't have a better system, but I love when the market goes down because it means the S/C are on sale. I like to keep some in the G to move over for big downturns like this and the rest just rides in the C/S (until I feel like we are nearing peak euphoria) because I have at least 20 years until retirement. I am way worse at timing market peaks than I am at timing market bottoms.

Thank you so much, that is one thing I did not know.

[Ehac]

You ask a difficult question, Ehac. Yes, you can invest in other Funds in the future, but when you do so depends on a number of factors, such as your personal risk tolerance, the parts of the market you wish to invest in, etc. In a way, "invest wisely" is a subjective term because what works for me at my stage of my life and career may not work for you. That said, take comfort in the fact that you're at least interested and are willing to learn, which is more than a lot of other people.

It sounds like you're still in the process of learning about TSP. I'm going to recommend that you take some time to read the first few posts of my Seasonal Musings thread (link in my signature below). The thread is mostly information about a particular approach to investing that is widely discussed here on TSPCenter. However, for your purposes I think it's best if you learn some of the basics about the Funds themselves, what parts of the market they track, and how they perform. I recommend you read is up to the post when I begin detailing the first Mix that I discuss in the thread, which is Jahbulon's Basic Mix. There will be a lot of Seasonal Strategy information in those posts as well, but focus more on information about investing in general and the Funds themselves.

By the way, you asked "when" can you invest in other Funds. The answer is that TSP has a rule that you can make only two IFT moves per month to any Fund, and after that can move only to the G Fund. For example, you can be in the G Fund on the 1st trading day of the month, move to S on the 2nd, and move to F on the 3rd. That's your two moves. Any further moves must be to the G Fund. In addition, you don't have to move 100% of your money. You can be 25% F, 50% C, 25% S, and decide to change that to 25% F, 50% C, and 25% I. That would count as one of your two IFTs for the month. So you can move right at the beginning of the month, or wait until the very end. When you use your IFTs is up to you.

Thank you so much!

[acidfly]

Is it time to come out of G? With many countries ending covid restrictions and just today Alberta Canada announced they will be doing the same, it's only a matter of time before our current admin sees the scam is up and with turn tail aswell on the restrictions. The jobs reports are horrible but with the restrictions gone jobs will be created jobs instead of people merely going back to jobs that were already in place. I think March could be a good month for the economy to finally grow.

[GooseJ]

You can never time the market as hard as you may try. As painful as it is, losses are all part of investing in the market. That is the difference between investing and speculating. You just hope for more green days than red days. Only invest based on your risk, or fear, tolerance will allow you to keep a normal blood pressure.

[Ehac]

You can never time the market as hard as you may try. As painful as it is, losses are all part of investing in the market. That is the difference between investing and speculating. You just hope for more green days than red days. Only invest based on your risk, or fear, tolerance will allow you to keep a normal blood pressure.

Thanks, my blood pressure is volatile lol