Thrift Savings Plan G Fund Monthly Returns Monthly Insights: Thrift Savings Plan Monthly Returns (2024)

FAQs

Thrift Savings Plan G Fund Monthly Returns Monthly Insights: Thrift Savings Plan Monthly Returns? ›

Thrift Savings Plan G Fund Monthly Returns is at 0.41%, compared to 0.35% last month and 0.31% last year. This is higher than the long term average of 0.37%.

As of June 2024, the TSP G fund rate today is 4.75% which is the highest we have seen since 2007. Time will tell if the higher level of rates in the G fund will continue.

The G Fund Yield Advantage—The G Fund rate calculation results in a long-term rate being earned on short-term securities. Because long-term interest rates are generally higher than short-term rates, G Fund securities usually earn a higher rate of return than do short-term marketable Treasury securities.

Investment in the I Fund offers the opportunity to experience gains from equity ownership of non-U.S. companies. Because it represents the stocks of companies in many developed countries (excluding the U.S.), it is an excellent way to diversify the stock portion of your TSP allocation.

For all practical purposes, this makes TSP G Fund like a stable-value fund or a supercharged money market fund: Investors can generally expect the G Fund to never lose money and to pay a modest yield over time.

First, the other funds are struggling. The C, S, I and F funds have all lost money in 2022 while the G Fund has the inherent advantage of being guaranteed by the government. In other words, the G Fund can't lose money while all the other funds have suffered losses.

Although the securities in the G Fund earn a long-term interest rate, the Board's investment in the G Fund is redeemable on any business day with no risk to principal. The value of G Fund securities does not fluctuate; only the interest rate changes.

You can keep your TSP account after you separate from federal service as long as you have a vested balance of $200 or more. Many participants choose to keep their money in the TSP because of the TSP's low-cost funds.

Can I take money out of my Thrift Savings Plan? ›

Having the option of taking an in-service withdrawal from your TSP account can be a lifesaver when you're facing a financial hardship. But before you do, evaluate your options carefully and know the consequences. It's a permanent withdrawal from your TSP account. You can't put the money back.

Regular TSP

To make equal contributions over the course of the 2024 calendar year (for 26 pay periods), you should contribute $885 each pay period. You should enter your election of $885 into myPay during December 3 – 9, 2023, and your election should be effective on December 17, 2023, the first pay period for 2024.

This program features: An IRS match up to 4% No income tax is payable until retirement. The opportunity to invest your money in various investment funds.

If the interest earned is low enough and the fees for the account are high enough, you may lose money. Although money market accounts aren't subject to the ups and downs of the stock market, they may come with higher fees than other savings products.

You are 100% invested in the G Fund

The fund is invested in short-term U.S. Treasury securities that are specially issued to the TSP, so principal and interest payments are guaranteed by the federal government. When the stock market is volatile (and isn't it always?), the G Fund appears to be a safe choice.

Indeed, there is always a chance that you could lose all of your money while investing in stocks, mutual funds, or other financial instruments. Markets can be unpredictable, and the value of investments can be impacted by a number of variables, including the state of the economy, business performance, and world events.

No one will stop you from moving to the G fund or taking a large sum out to pay off your mortgage but whenever possible, I would wait until the market has recovered before making these sorts of moves. That way you can sell way fewer shares to get the same amount of money that you need.

Interest Rate and Repayment Terms of a TSP Loan

The current interest rate is 4.375% (April 2024). TSP will notify your payroll office and start payroll deduction based on the repayment period you selected.

Total TSP assets at the end of 2023 were $845 billion. 4,060,009 FERS TSP accounts with an average account balance of $175,692. To compare, the average 401(k) balance based on 4.9 million defined contribution retirement plans was $112,572 at the end of 2022, according to Vanguard's 2023 analysis.