Likes Likes:  0
Results 1 to 6 of 6

Thread: G-fund under attack from the government...

  1. 10-19-2004, 10:26 PM #1
    zoeb's Avatar
    zoeb
    zoeb is offline Newbie Reputation: 0
    AutoTracker

    Join Date
    Aug 2004
    Location
    , ,
    Posts
    8

    Post imported post

    I'm sort of new here in that I haven't posted...still trying to figure out this economic stuff but I enjoy reading everyone's ideas on investments. I came a across a story on the Internet today that has me concerned. I'm even thinking about reducing my TSP contribution and looking for other ways to save...maybe a Roth IRA, mutual funds...I don't know yet what I'm going to do. My question is do we have any guarantee that the money we put in the TSP will be there when we need it and this stupid administration won't continue to raid it?

    The original story came from a posting in Rural carriers usenet. I did a yahoo search and it also had a similar storyabout Sec. John Snow.

    >US President George Bush's administration has weathered a pre-election
    >mauling by announcing emergency measures to skirt a $7.38-trillion
    >debt limit.
    >Treasury Secretary John Snow said he would use pension money to keep the
    >government running. In a letter to US Senate majority leader Bill Frist on
    >Thursday, Snow said he was immediately suspending payments to a federal
    >employees' retirement scheme, the Government Securities Investment Fund (G-Fund). The missing money would be repaid in full later, with no net effect on the
    >fund or retirees, he promised.

    I think we had the same promise on social security too....:X

    Reply With Quote Reply With Quote

    2.  
  2. 10-19-2004, 10:58 PM #2
    tsptalk's Avatar
    tsptalk
    tsptalk is online now Moderator Reputation: 44268
    AutoTracker

    Join Date
    Feb 2004
    Posts
    29,204
    Blog Entries
    4105

    Post imported post

    Welcome zoeb!

    I saw that too. Scary.

    Thanks.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
    Reply With Quote Reply With Quote
    3.  
  3. 10-20-2004, 04:11 AM #3
    Mike's Avatar
    Mike
    Mike is offline Club TSP Reputation: 294
    AutoTracker

    Join Date
    Jul 2004
    Location
    Twin Cities, Minnesota, USA
    Posts
    1,283

    Post imported post

    How exactly is that legal?

    I guess from now on, I'll just be putting money in F, C,S, and I.

    Then again, if they can tap into G fund, they can tap into any of them - but I'd imagine they started with G since most federal employees stupidly dump their money into that one and leave it there.
    Reply With Quote Reply With Quote
    4.  
  4. 10-20-2004, 09:17 AM #4
    Show-me's Avatar
    Show-me
    Show-me is offline TSP Guru Reputation: 4866
    AutoTracker

    Join Date
    Sep 2004
    Location
    Missouri
    Posts
    8,619

    Post imported post

    From what I understand its a paper shuffle. They track your contributions and gains. Hold them until the debt ceiling problem is resolved and then the Treasury pays you back.This is all done while they use your money tooperate the gov't. You don't loose anythingbut I also do not like the way its done.
    Socrates: "Democracy, which is a charming form of government, full of variety and disorder, and dispensing a sort of equality to equals and unequaled alike."
    Reply With Quote Reply With Quote
    5.  
  5. 10-20-2004, 09:58 AM #5
    Mike's Avatar
    Mike
    Mike is offline Club TSP Reputation: 294
    AutoTracker

    Join Date
    Jul 2004
    Location
    Twin Cities, Minnesota, USA
    Posts
    1,283

    Post imported post

    I don't trust them. I'm avoiding G from now on- until they pass through this "debt crisis" anyway.
    Reply With Quote Reply With Quote
    6.  
  6. 10-20-2004, 05:17 PM #6
    zoeb's Avatar
    zoeb
    zoeb is offline Newbie Reputation: 0
    AutoTracker

    Join Date
    Aug 2004
    Location
    , ,
    Posts
    8

    Post imported post

    I also got this message from a political sight I posted on:

    Several years ago The Thrift Savings Plan for Federal employees contracted with a private company to upgrade and modernize the record keeping procedures. The company charged millions but failed to meet their deadlines and do the work on the system that they had promised. The millions paid for these promised enhancements came from the federal employees funds. When the Thrift's administrators tried to take legal action to get back money that they had paid the contractor, their attempts were blocked by the Justice Department.

    Guess what, the company had close ties to Bush & Co. and got to keep their overcharges. The last I heard the Thrift fund administrators who raised hell about what was done, still had not gotten any satisfaction in recovering the money so the employees rates of return on their investments were reduced accordingly.

    This stuff just makes me nervous to know that it can take hits like this and there aren't laws protecting the funds...or there doesn't seem to be anything prohibiting this. :X
    Reply With Quote Reply With Quote
    7.  
« Previous Thread | Next Thread »

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Forum Rules

S&P500 (C Fund) (delayed)
G-fund under attack from the government...
(Stockcharts.com Real-time) 		DWCPF (S Fund) (delayed)
G-fund under attack from the government...
(Stockcharts.com Real-time) 		EFA (I Fund) (delayed)
G-fund under attack from the government...
(Stockcharts.com Real-time) 		BND (F Fund) (delayed)
G-fund under attack from the government...
(Stockcharts.com Real-time)
Yahoo Finance Realtime TSP Fund Tracking Index Quotes