Results 1 to 10 of 10

Thread: G-FUND: Treasury unable to fully invest the G-Fund due to the debt ceiling.

  1. #1

    Default G-FUND: Treasury unable to fully invest the G-Fund due to the debt ceiling.

    Just got an email from the TSP about the G-Fund:

    G Fund and the debt limit



    As of today, March 16, 2017, the U.S. Treasury was unable to fully invest the Government Securities Investment (G) Fund due to the statutory ceiling on the federal debt. However, 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.
    -----------------



    This seems to happen every year or two.

    Thoughts?


  2.  
  3. #2

    Join Date
    Feb 2012
    Location
    Arkansas
    Posts
    2,244

    Default Re: G-FUND: Treasury unable to fully invest the G-Fund due to the debt ceiling.

    One would think Congress would have the whole "statutory debt ceiling" thing down by now. It's not like the debt clock is going to get a meaningful rest any time soon.
    Maybe stop spending so much of our money they don't have?
    Time to step up Republicans.

  4.  
  5. #3

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    1,448

    Default Re: G-FUND: Treasury unable to fully invest the G-Fund due to the debt ceiling.

    Maybe they are using G-Fund as float to pay bills until they up the debt ceiling!?!

  6.  
  7. #4

    Join Date
    Dec 2007
    Location
    inland Northwest
    Posts
    3,930

    Default Re: G-FUND: Treasury unable to fully invest the G-Fund due to the debt ceiling.

    Quote Originally Posted by evilanne View Post
    Maybe they are using G-Fund as float to pay bills until they up the debt ceiling!?!

    of course they are, or already did. Stockman Explains The Mystery Of The Treasury's Disappearing Cash | Zero Hedge
    "life can only be understood backwards, but it must be lived forwards" - soren kierkegaard

  8.  
  9. #5

    Default Re: G-FUND: Treasury unable to fully invest the G-Fund due to the debt ceiling.

    I find it to be ridiculous that they seem to do this every couple years & then wonder why more and more folks choose to leave the TSP as soon as they are able...

    Why pay the higher TSP fees AND be limited to ONLY 2 changes per month when you can roll your TSP over to Vanguard & pay considerably less in fees??? It's a no brainer to me.

    Wife & I each have a ROTH at Vanguard & are diversified in a few of the top funds... such as the "total stock market fund" - the "admiral shares" version of the fund is only about .05% in fees, but we're paying around .35% for the TSP's fees (something like that).

    Over time, the $$$ paid in FEES REALLY adds up.

    I know from firsthand experience.

    We were with "First Command" and were young & didn't realize they were not Fiduciary advisors. So, they set me up w/a "Franklin Templeton" ROTH & didn't realize we'd been paying absolutely outrageous fees to them for 10 or 15 years... We literally paid them tens of thousands of $$$ in FEES that were upwards of 1% or a little more, plus the little hidden "marketing" fees. We had no clue about fees. Okay, I am finished ranting. Thanks!

  10.  
  11. #6

    Default Re: G-FUND: Treasury unable to fully invest the G-Fund due to the debt ceiling.

    I thought our TSP fees were less than that. On the TSP site it said our expense was 0.038% last year.

    https://www.tsp.gov/InvestmentFunds/...enseRatio.html

    https://www.tsp.gov/PlanParticipatio...eExpenses.html
    Allocations as of COB Dec 21 : 100% S. | Retirement Date: Dec 2022
    Past Returns:
    2016 -1.79%, 2015 8.71%, 2014 -7.39%, 2013 17.29%, 2012 2.75%,5Yr Avg 3.57%

  12.  
  13. #7

    Join Date
    Feb 2012
    Location
    Arkansas
    Posts
    2,244

    Default Re: G-FUND: Treasury unable to fully invest the G-Fund due to the debt ceiling.

    Coastalite,
    TSP offers some of the lowest net expense ratio costs available. For 2016, the average net expense was $0.38 per $1,000 invested.
    I, as many TSP participants, agree wholeheartedly that the 2 IFT limitation is well, limiting. 1 or 2 more monthly IFTs would provide numerous options for active TSP traders. But, the TSP board won't change it any time soon. Their stance is that TSP is a retirement fund, not a mutual fund, that's to be treated as one component of government retirement. They, the board and Greg Long, prefer TSP participants who pick a fund and camp out in it for the long term. Sort of a "save you from yourself" attitude.
    They're not too fond of active traders. (And we're not too fond of them). There will eventually be additional TSP investment fund options offered in the future. But, the time it takes Long and the Board to make a decision is about as long the gestation period for Elephants (or longer).
    On the other hand, TSP is one of few investment vehicles that offer an option like the G fund where you can safely park your assets during market downturns, yet still generate some sort of return. The trade-off is, there isn't much fund variety.
    Best thing you can do is decide what percentage of your overall investment strategy TSP will comprise. Personally, I left about 40% in TSP, and moved 60% to a self-directed IRA when I retired. It's worked well for me so far.
    Find something that fits you, and your needs. That's all you can do. Good luck.

  14.  
  15. #8

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    1,448

    Default Re: G-FUND: Treasury unable to fully invest the G-Fund due to the debt ceiling.

    There are quite a few websites that will allow you to compare different brokers and their fees. e.g. Compare Online Brokers - StockBrokers.com & https://www.thestreet.com/online-tra...e-brokers.html

    Each mutual fund or EFT have fees or expenses that are outlined in their prospectus, which is in addition to any transaction or sales fee to purchase or sell Prospectus Definition | Investopedia Many of the discount brokerages allow you free trades for certain EFTs, however, there is generally a minimum holding period of 30 days, or you will be charged a frequent trading fee or penalty e.g. https://www.fidelity.com/etfs/ishares
    Note: A short-term trading fee of $4.95 will be charged for any sales that occur within 30 days of the original purchase of the ETF with the oldest shares in the account being depleted first. The fee for shares sold on FAST, Fidelity's automated phone system, within 30 days of purchase is $12.95.
    So even with a discount brokerage, you don't have unlimited trades without additional fees. If you rollover to full service brokerage for someone to actively manage, be aware that you will most likely end up in a fee based account that will charge you an annual percentage of the value of your account once they fully implement DOL rule for retirement accounts, which makes them a fiduciary.

  16.  
  17. #9

    Default Re: G-FUND: Treasury unable to fully invest the G-Fund due to the debt ceiling.

    Quote Originally Posted by Cactus View Post
    I thought our TSP fees were less than that. On the TSP site it said our expense was 0.038% last year.

    Hi Cactus.

    I found the TSP's April 2016 Highlights PDF... and on page 2 (it's showing 2015's TSP expense fees)...
    they list:

    1) "net" fees;

    2) "gross" fees

    3) additional "Other Expenses" fees (which appear to be similar to 12-b1 "marketing fees" that are common in the industry)


    I don't know how they're getting their numbers... if you look at the "S fund" 2015 fees (for example), it says there's a "net fee" of 0.029%... but, there's also an additional "Other Expenses" fee of 0.038%.
    So, was it 0.029% in total fees for the S fund in 2015, or was it 0.029% + 0.038% of additional "Other Expenses"?

    https://www.tsp.gov/forms/newsletterArchive.html
    Check out the April 2016 newsletter for a PDF of the inserted image.
    Attachment 40950


  18.  
  19. #10

    Join Date
    Feb 2012
    Location
    Arkansas
    Posts
    2,244

    Default Re: G-FUND: Treasury unable to fully invest the G-Fund due to the debt ceiling.

    The S fund had administrative and securities lending fees totaling 0.067%.
    I had read that once before about TSP, but I guess it didn't register.
    Good information for those that aren't aware. Good catch coastalite.
    1 Net administrative expenses are the expenses charged to TSP participants per dollar invested in the respective funds after o setting gross administrativeexpenses with account forfeitures and loan fees.






    Other Expenses:
    2 Fees associated with securities lending are not included in 2015 administrative expenses. Consistent with standard practice in the industry, they are charged inaddition to administrative expenses. e other expenses represent fees paid to the investment manager for administering securities lending programs. Incomeearned from these programs improved the returns of the funds.

  20.  

Tags for this 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
  •  
S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)
DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)
EFA (I Fund)
iShares MSCI EAFE Index (EFA)
AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)