The more significant issue is whether the G fund will continue in the future as a preferred fund for TSP'rs with long-term rates which are not available to the general public or will the TSP be forced to go to market rates for what is basically a government daily bond and close to 0% at the moment.
That's where the congressional wonks were headed when they were lobbying for the G fund to be marginalized and the budget effects to be reflected/used for other purposes (like the recent transportation bill). Face with such a prospect, which would be hard to implement retroactively, many would change their investment mix to a more risky set of choices.
On Tue, Aug 4, 2015 at 12:02 PM, michaelhbond@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:
Paul,
You can still do IFTs to the G fund and your money is still in your name. The G fund is simply not paying interest until the debt ceiling is resolved. In the past, they have back interest.
The government is not borrowing from the G fund and there is no risk of confiscation. By not paying interest on your funds in the G fund, they move it off the government debt ledger for the purposes of calculating the debt to meet the debt ceiling requirements. The G fund is not invested in marketable securities on the open market and is basically a virtual Treasury security (on paper only) with a calculated interest rate for the sole purpose of the TSP G fund. So it is easy to change the accounting of it on the government books.
__._,_.___
Posted by: Ralph Architzel <rarch71@gmail.com>
| Reply via web post | • | Reply to sender | • | Reply to group | • | Start a New Topic | • | Messages in this topic (6) |
Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.
.
__,_._,___
Anda baru saja membaca artikel yang berkategori dengan judul Re: [TSP_Strategy] Suspension of G Fund Investments. Anda bisa bookmark halaman ini dengan URL https://1stleadershipworkshop.blogspot.com/2015/08/re-tspstrategy-suspension-of-g-fund_58.html. Terima kasih!
Ditulis oleh:
Andriansyah -
Belum ada komentar untuk "Re: [TSP_Strategy] Suspension of G Fund Investments"
Post a Comment