Re: [TSPStrategy] G Fund

The G fund is basically invested in Treasuries and cash. In theory it will not go negative but because the Federal Reserve has lowered interest rates to near zero, G fund is not paying out much if anything. It's very safe investment if you don't want to lose money.

The F fund invests in bonds. They can lose value but are much less volatile then stocks (C fund and S fund). And their returns are much less. Many retired people like to buy bond funds since they generally hold their principle value and pay a dividend each month.

 

If you invest in L funds you will notice the lower the L fund (L fund, L 2020, etc) hold a much higher percent of G and F funds then C, S, and I funds. And the higher the number (L 2050, 2060, etc) the holding percent for G and F are lower.  

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On Sunday, January 17, 2021, 2:04 PM, Mystery girl <MissMarshaLynn@gmail.com> wrote:

I would like some clarification on the F fund vs. the G fund.....isn't it better to use the F fund for safety in a down market ( ie...low interest rates) Seems to me there is greater potential for a higher gain in the F fund compared to the G fund....

On Sun, Jan 17, 2021 at 8:53 AM A Mzzss Williams <aemery04@gmail.com> wrote:

Thank you Sarah!

On Jan 17, 2021, at 11:35 AM, sarah_oz via groups.io <sarah_oz=yahoo.com@groups.io> wrote:



[Edited Message Follows]

January is traditionally a bullish month but has been less so in recent years.  That was the reason I moved to G, to protect profits.
Will the markets pull back?
Will the sun rise in the morning?
February is traditionally bearish.

The charts show a bit more upside as being likely.

I don't care to return to equities with that degree of risk.  I'd prefer to wait. 
When the markets fall, as you know, it will undoubtedly be overdone.
A perfect time to return.