New G Fund Rate?

**dpmp** · 03-09-2009, 10:42 PM

With this pitiful earning rate, it's probably better just to contribute enough for the 5% matching, the rest stays in my pocket or going to an IRA so that I can short this market.

Any thought?

By the way, do you have a guide on how to correlate the gain/loss from those TSP funds into the actual earnings?

**rtrhed** · 03-12-2009, 08:43 PM

I thought we were guaranteed a certain rate of return in the G Fund as government employees. Or is that just an old wives tale?

**SkyPilot** · 03-12-2009, 11:35 PM

Originally Posted by rtrhed

I thought we were guaranteed a certain rate of return in the G Fund as government employees. Or is that just an old wives tale?

The only guarantee is that is will not earn less than 0%. That is to say, you are protected from losses, but you may not keep up with inflation either.

**squalebear** · 03-13-2009, 12:52 AM

Originally Posted by rtrhed

I thought we were guaranteed a certain rate of return in the G Fund as government employees. Or is that just an old wives tale?

The rate fluxuates, last I looked, it was at 2.875% and its last move
came from a previous rate of 2.75%. I'm not sure what the moves are
based on, but in the good old days, it was common to see a penny
every 3-4 days. Now, its a longer wait for a full penny gain.

**saturneptune** · 03-18-2009, 07:23 PM

Today the fed bought up lots of treasuries, lowering the yield. Does this in effect lower the G fund rate from its already historic lows?

**squalebear** · 05-04-2009, 09:44 PM

(G) Fund Rate Increases To 2.875% from 2.51%

**alevin** · 05-05-2009, 02:33 AM

yep, i spent part of the weekend figuring out how much I needed to spend on:

insulation to void the ice dam/wall leakage/potential house electrical fire scenario I dealt with last winter (just read about electrical fires from ice dam wall leakage yesterday while doing home repair research

),

finally create a liveable house tempwise for summer time (totally inadequate on the cooling end of spectrum),

get some improved natural lighting (biggest dissatisfaction with home is it's dark), and

re-roof -if I want to get it all done now before rates go screaming up. Figured out I've got about half of what I need saved in the bank so far-will take another 5-8 months yet to get the savings up to cover everything needs doing, so am thinking it's maybe time to get the TSP loan before G fund rate runs much higher.

I hate thinking about debt burden again, but if I'm going to do it, better go ahead and do it now (and get enough to plow into Roth for next couple years too, while I'm at it too).