Thread: ravensfan's Account Talk

Originally Posted by kb9nvh

I understand your point...My interest in tracking the gains/losses for those funds lies in just knowing how they are doing in relation to the other funds so I can get a feel for how the ratios they have chosen have protected or hurt assets in relation to the other straight funds you track. Since the L funds dynamic is a mix of all. But I suppose it's something I could do if I put in the effort instead of expecting someone else to do it. Lol

I'm not interested in investing in the L Funds, but wonder what the impact of the daily rebalancing has in comparison to if you bought/held the individual funds designated during the quarter (since they change slightly each quarter except for L-Income). I'm sure the results would vary based on fund percentages & market direction...up, down or sideways.

Changed allocation to 50% G Fund, 15% C Fund, 35% S Fund, effective COB 3/30/17

My thinking is that with the nice run up the I fund had in March, that it may have peaked.

Originally Posted by ravensfan

Changed allocation to 50% G Fund, 15% C Fund, 35% S Fund, effective COB 3/30/17

My thinking is that with the nice run up the I fund had in March, that it may have peaked.

The move sounded good at the time. Not sure what I'll do yet.

Here is how the Best Fund, Worst Fund looks as of COB 30 Mar 17.

	G Fund	F Fund	C Fund	S Fund	I Fund
15 DAY TOTAL	0.18%	1.17%	0.25%	1.44%	3.48%
60 DAY TOTAL	0.74%	0.86%	5.28%	3.71%	8.03%

Have a great evening!!!

I quit the I fund many years ago, might take another look!

March was surprising for the "I" fund. Let's hope statistics hold true for April. I could use a little boost before going back to "S".

Originally Posted by nnuut

I quit the I fund many years ago, might take another look!

So did I, but I considered buying in sometime if February. So far, so good, but it too must be watched for past volatility.

Based on current information I've read, I was under the impression that investment in the "G" fund were halted since the government was borrowing from it and until the debt ceiling was raised. Evidently I interpreted the articles wrong, as I figured I was stuck investing in the funds I'm currently in, and could not go back to the "G" if there were trouble on the horizon. If this isn't the case, can someone explain. Thanks in advance.

Here is what a read that addresses a situation that is going on with the G fund – a situation that sounds dramatic but is really a non-event.

"We’ve all grown accustomed to news reports about “raising the debt ceiling”. Often, the process of authorizing more debt encounters dire concerns about the government running out of money. What many folks don’t realize is that one of the ways the government can manage its debt is by playing games with how they account for the special issue treasury securities issued to the G fund. This has happened many times in recent years – and most people do not even realize it.

On Mar 16, the government suspended new investments in the G fund. Essentially, they are booking new G fund investments into non-interest-bearing accounts at Treasury that do not count towards the public debt limit. Suspending new investments sounds dramatic, but in reality, it is nothing more than a temporary bookkeeping adjustment.

It is very important to understand that the situation is temporary. As soon as the debt ceiling is raised, the Treasury will restore all G fund accounts to their normal standing. The rules that allow the Treasury to make this adjustment in the first place, also provide a “make-whole provision” that enables them to set everything back where it would have been – as if nothing had happened.

From the TSP website:

“G Fund investors remain fully protected and G Fund earnings are fully guaranteed by the federal government. This statutory guarantee has effectively protected G Fund investors many times over the past 25 years. G Fund account balances will continue to accrue earnings and will be updated each business day, and loans and withdrawals will be unaffected.”

The government is not “raiding” the TSP. They are not removing any money from the G fund – or any other TSP fund. What they are doing is temporarily adjusting how they account for new G fund investments. When the debt ceiling is raised, the Treasury will readjust all G fund accounts so that they are positioned as if nothing had happened.

We have been through this exact situation several times in recent years – and chances are that you did not even realize it. Practically speaking, there is no impact on TSP investors. Behind the scenes, there is a temporary change in how G fund investments are accounted for. The whole exercise is a bookkeeping manipulation that allows the Treasury to avoid violating the debt ceiling. At the end of the day, there is no impact on anyone.

You can email any questions you have to the TSP.gov website.

Here is how the Best Fund, Worst Fund looks as of COB 31 Mar 17.

	G Fund	F Fund	C Fund	S Fund	I Fund
15 DAY TOTAL	0.18%	1.20%	-0.31%	1.20%	2.09%
60 DAY TOTAL	0.74%	0.98%	4.46%	2.22%	6.25%

Have a great weekend!!!

Hmm, today is looking like a buying opportunity, but the crystal ball is still a little foggy...Probably best to wait one more day before I decide.

Good luck everyone!