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TSP

Administered by the Federal Retirement Thrift Investment Board, this defined contribution plan for federal employees has roughly 4,614,874 participants, and over $358 billion in assets under management. Ask your TSP questions and post related topics here.

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VAer1  
#1 Posted : Tuesday, August 25, 2020 7:00:37 PM(UTC)
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I believe that G fund almost has zero risk, how about the risk level for F fund? Should I worry about risk of F fund? F fund has slightly better return than G fund.

Thanks.
DaVinci95  
#2 Posted : Wednesday, August 26, 2020 7:51:52 AM(UTC)
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G is the only one guaranteed not to lose money. F has a slightly higher return in exchange for some, but still low, risk.
VAer1  
#3 Posted : Wednesday, August 26, 2020 8:00:34 AM(UTC)
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Originally Posted by: DaVinci95 Go to Quoted Post
G is the only one guaranteed not to lose money. F has a slightly higher return in exchange for some, but still low, risk.


How much difference for return between G fund and F fund during current low interest rate period? less than 1%, ,more than 1%, or more than 2%, etc?

I am thinking if it is worth to put some in F fund? If "slightly higher" is too small, then just keep it under G fund.

Thanks.
EagleDog  
#4 Posted : Wednesday, August 26, 2020 8:03:15 AM(UTC)

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Originally Posted by: VAer1 Go to Quoted Post
I believe that G fund almost has zero risk, how about the risk level for F fund?

Lifetime return on the F Fund is 6.14%.
In it's history, there have been three negative years (since 1988).

Edited by user Wednesday, August 26, 2020 8:04:18 AM(UTC)  | Reason: Not specified

VAer1  
#5 Posted : Wednesday, August 26, 2020 8:07:04 AM(UTC)
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Originally Posted by: EagleDog Go to Quoted Post
Originally Posted by: VAer1 Go to Quoted Post
I believe that G fund almost has zero risk, how about the risk level for F fund?

Lifetime return on the F Fund is 6.14%.
In it's history, there have been three negative years (since 1988).


6.14% is a lot better than G fund, and it still comes with VERY low risk. Then I think I will prefer F fund over G fund.

Thanks.
TheRealOrange  
#6 Posted : Wednesday, August 26, 2020 9:30:35 AM(UTC)
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Originally Posted by: VAer1 Go to Quoted Post
Originally Posted by: EagleDog Go to Quoted Post
Originally Posted by: VAer1 Go to Quoted Post
I believe that G fund almost has zero risk, how about the risk level for F fund?

Lifetime return on the F Fund is 6.14%.
In it's history, there have been three negative years (since 1988).

6.14% is a lot better than G fund, and it still comes with VERY low risk. Then I think I will prefer F fund over G fund.

Thanks.

The lifetime return for the G Fund is 4.94%, so the difference is 1.2%. Of course, interest rates have been low for quite a while, so that definitely is a consideration at present.
DaVinci95  
#7 Posted : Wednesday, August 26, 2020 2:28:44 PM(UTC)
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Originally Posted by: VAer1 Go to Quoted Post
Originally Posted by: EagleDog Go to Quoted Post
Originally Posted by: VAer1 Go to Quoted Post
I believe that G fund almost has zero risk, how about the risk level for F fund?

Lifetime return on the F Fund is 6.14%.
In it's history, there have been three negative years (since 1988).


6.14% is a lot better than G fund, and it still comes with VERY low risk. Then I think I will prefer F fund over G fund.

Thanks.


How long do you have until retirement? If you've got a way to go yet, then parking your TSP in either F or G isn't advisable. You'll get a much better long-term return from the C, S, or Lifecycle funds.
https://www.tspfolio.com/tspfunds
roger.d  
#8 Posted : Friday, August 28, 2020 6:22:33 PM(UTC)
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Originally Posted by: DaVinci95 Go to Quoted Post


How long do you have until retirement? If you've got a way to go yet, then parking your TSP in either F or G isn't advisable. You'll get a much better long-term return from the C, S, or Lifecycle funds.
https://www.tspfolio.com/tspfunds


Looking at the history of the international fund, I am hard pressed to recommend the Lifecycle fund.

Determine what your "sleep well" allocation is, and stick to it. Is it 80% stocks and 20% bonds. Or 50/50%.

Of your stock portion, go 80% C and 20% S. That will come close to representing the total stock market.

Being ~5 years from retirement, I am still close to 90C/10F.

Edited by user Saturday, August 29, 2020 5:35:03 AM(UTC)  | Reason: correct 90/10

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