Thread: New Investor - Stupid Question

Originally Posted by My Land

As a person that's getting closer to retirement (13 years) and taking a more active roll in what happens to my money - I've rolled a civilian 401K into TSP. I've been in for a month and a half and have pretty much split my money equally between the C, S, and I funds. So far so good - I've had a 20% increase in value. Here are my stupid questions......
1. When a fund is earning .24 (like the G) how is that computed? ie... If I have 100k do I make 24k a year? or 2k a month? so, if I make more than that - I'm ahead of what I could make with a safer fund?
2. Is this a "fantasy league" or are actual fund returns posted?
3. There is a 2 move per month limit, right? so it limits frequent moves?
I appreciate any help - As for stupid questions.... at least I only ask them once! Thanks.

First of all, welcome to the MB! There are a lot of friendly folks here and we're all trying to learn together.

My shot, right or wrong, at answers for you:

1. If G Fund is earning .24, that means that a $100,000 TSP account would earn 0.24% per month, or $240. (Don't spend it all in one place. )
2. I'm assuming you're referring to the TSP account tracker page. It tracks percentage of return, based on what each actual fund (G,F,C,S or I Funds) does each business day, and according to what each member posts for their fund allocations. We don't track dollar amounts and suggest that you don't share that information with anyone.
3. Boy, does it ever limit frequent moves! Two moves anywhere and then unlimited incremental moves to G Fund. That's it.

Please let me know if you have additional questions, or if the answers above aren't clear. And again, welcome!

Lady

Originally Posted by My Land

As a person that's getting closer to retirement (13 years) and taking a more active roll in what happens to my money - I've rolled a civilian 401K into TSP. I've been in for a month and a half and have pretty much split my money equally between the C, S, and I funds. So far so good - I've had a 20% increase in value. Here are my stupid questions......
1. When a fund is earning .24 (like the G) how is that computed? ie... If I have 100k do I make 24k a year? or 2k a month? so, if I make more than that - I'm ahead of what I could make with a safer fund?
2. Is this a "fantasy league" or are actual fund returns posted?
3. There is a 2 move per month limit, right? so it limits frequent moves?
I appreciate any help - As for stupid questions.... at least I only ask them once! Thanks.

Hello and Welcome to the TSPTalk Circus, Check into all the links that are involved in this site and you can go far ($$$).
Everyone, theoretically, is completely honest about everything on this site, although I suppose that there may be some a little less. If they give even a few posts to the Leaderboard List then you have a good knowledge of their status. FOLLOW THE LEADERS, but be careful.




1. The G fund can only return ~.04 a year. I'm not sure where that figure of .24 if from but look at the long term:

10-Year Summary of TSP Individual Funds Annual Returns

Year

G Fund

3.75

% F Fund

5.45

% C Fund

-36.99

% S Fund*

-38.32

% I Fund*

-42.43

2. Everyone, theoretically, is completely honest about everything on this site, although I suppose that there may be some a little less. If they give even a few posts to the Leaderboard List then you have a good knowledge of their status. FOLLOW THE LEADERS, but be careful.
3. You have 2 IFT's per month, then your only other move left is 100% G fund, then you are done til the start of the next month. There are certain <1%IFT's check Squalebear threads for details.
THERE ARE NO STUPID QUESTIONS. JUST STUPID ANSWERER'S TO THE QUESTION.

So movements "to" the G fund are mearly a way to stop the bleeding if other funds are tanking??

But if your first move is to the G fund that counts as one of your IFTs.

Yes, the G fund is where you run when the sky ( NYSE ) is falling and you're trying to keep your balance where it is. However, the TSPTalk Grandmaster Birchtree, Mr. Buy-and-Hold, will hold on forever. It's your money, do what you think is best.

Yes, G Fund is the "safety" fund. It's almost like going to cash holding in a broker account. And Birch brings up an important point. If one of your first 2 IFTs in a month is to the G Fund, that still counts as one of your two unlimited moves to any fund.

Some people have thought that a move to G didn't count in their allotment of 2 IFTs per month, and have found out the hard way that it is wrong. The rule is "two moves anywhere, and then only to G."

Lady

Thanks for the info!