OK, so now it’s official. The G Fund has become the largest of the TSP’s five main funds. Given that the C Fund, the second-largest fund, has approximately $200 billion invested, this is an impressive feat.
While we await final figures from the most recent TSP Investment board meeting, the G Fund is estimated to be worth between $215 and $220 billion, given current market conditions.
So, How Does This Affect You?
What made this happen? The G Fund has risen to the top for a couple of reasons.
The C, S, I, and F Funds all had losses in 2022, which should be noted since other funds are also struggling compared to the G Fund, which benefits from automatic government backing. To rephrase, the G Fund must be up if every other fund is down. Since the G Fund’s size has remained constant regardless of market fluctuations, the other funds’ assets have fluctuated.
Two, many passengers are abandoning the ship. Due to the recent market uncertainty, investors are fleeing the riskier C, S, and I stock funds in favor of the more conservative G Fund. As a result, the value of the other funds is decreasing not only due to market performance but also because individual federal employees are withdrawing their money.
Most government employees, however, are blissfully ignorant that this is the worst time ever to access the G Fund.
A Window of Great Opportunity Presents Itself
There is usually positive and negative market news. The unfortunate news is that it hurts to see account balances decline.
Good news: you have a once-in-a-lifetime opportunity to guarantee your financial stability. You can save substantially by investing while the market is down. Keep it in mind. With a 20% drop in value since January 2022, your TSP contribution can now buy a much larger percentage of the C Fund.
While at work, you might take advantage of the down market by stocking up on bargains to sell at a later profit.
By investing heavily in the G Fund, you are doing the opposite, buying high and selling low. Your retirement savings could suffer in the long run due to this approach. However, it is essential to have professional advice before taking any action. Inquiring with a professional should result in useful recommendations.
Getting Ready for or Currently Enjoying Retirement?
What if you’re approaching retirement and don’t have much time to “buy low” by contributing to your TSP?
For individuals either nearing or already in retirement, it is crucial to have an investing plan to help you purchase low and sell high for the rest of your life. Also, take expert advice into consideration
Bill and his associates of Faith Financial Advisors have over 30 years’ experience in the financial services industry.
He has been a Federal Employee (FERS) independent advocate and an affiliate of PSRE, Public Sector Retirement Educators, a Federal Contractor and Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.
Bill will help you understand the FERS Benefits and TSP withdrawal options in detail while also helping to guide you in your Social Security choices.
Our primary goal is to guide you into your ment with no regrets; safe, predictable, stable and for life using forward thinking ideas and concepts.
> Financial Services consultant since 1984
> FERS independent advocate and an affiliate of Public Sector Retirement Educators (PSRE), a Federal Contractor and Registered Vendors to the
> Affiliate of TSP Withdrawal Consultants
> His goal is to guide individuals into retirement with safe, and predictable choices for stability using forward thinking ideas and concepts.