Thread: G Fund Return Process

Wonder Woman wrote:

In June and July 2003 the G Fund paid the penny as much as 8-11 days apart.

Yeah, that makes sense. The interest rate paid on the G-fund was lower then, so it took longer between the penny increments.

When things don't look too good I like to BAIL OUT to the "G" and get my penny. They know this. It's just like IFT's, no guarantee, 1 to 2 days. If they {TSP} wanted to they could make the schedule known, but this way there is no guarantee They are in the clear.:*I think they have variables too. The Gov'tmay belate on the paymentfor The "G" etc.. Don't see them late when I lose in the "C", "S", or "I"!!:@That would be nice and fair. WHAT! Listen to me!!!!!!:X

Yeah, that makes sense. The interest rate paid on the G-fund was lower then, so it took longer between the penny increments.

Jul 21th 2003 "G" Fund 10.04, May 12 2005 "G" 10.85--- What?:%

2003



July
0.30

2005

Apr0.37

I don't get your point Greg???o

Norman

I think we need to know the interest rate to predict the penny day. The rate is the loan rate listed on the TSP site, but I don't have the data for what this rate was going back to June of 2003. If we can find pepople who took out loans and are are willing to report loan date and interest rate we might be able to piece all the data together.

Craig

nnuut wrote:

I don't get your point Greg???o

All I was referring to is that if G-fund is paying 4%, then the number of days between when the penny is added to the share price would be ~50% longer than when it was paying 6%.

Ya'll probably already knew this. My statement was probably poorly worded.

Why?:%

nnuut wrote:

Why?:%

Assume I is the daily interest rate and N is the number of days needed to go from $10.00 to $10.01.

Then we need to solve for N in

10*(1+I)^N = 10.01.

We get N = ln(10.01/10)/ln(1+I)

But ln(1+I) is about equal to I (using Taylor Series approx since I is very small), so we can simplify to

N = ln(10.01/10)/I

If I doubles, N will go down by a factor of 2.

Craig

You all are putting way too much into this. Remember, it's a government retirement plan. That being said, I'm sure they only work once a week...........:^

ckb21401 wrote:

nnuut wrote:

Why?:%

Assume I is the daily interest rate and N is the number of days needed to go from $10.00 to $10.01.

Then we need to solve for N in

10*(1+I)^N = 10.01.

We get N = ln(10.01/10)/ln(1+I)

But ln(1+I) is about equal to I (using Taylor Series approx since I is very small), so we can simplify to

N = ln(10.01/10)/I

If I doubles, N will go down by a factor of 2.

Craig

Craig, That was anexcellent explanation!

The Technician wrote:

I think tomorrow the 13th will be the next day....the fund will jump to 10.86.....and then 6 days later it will jump again to 10.87......

Lets wait and see if I got the days correct.....maybe we can predict when the pennies come our way.....:^

The Technician:dude:

Tech, The G fund did not jump. Back to the drawing board?

Figure once a week. That is a 5.2% interest rate since there are 52 weeks in the year and the share price isnear 10.00. (Each penny is roughly one part per thousand and52parts per thousand is 5.2 parts per hundred.)

If 4.5%it will be 7times 5.2/4.5 orseven days plus (15% of a week) which is very close to one-seventhet voila! it is 7+1 = 8 days. So you have 5.2% is every 7 days, 4.5% is every 8 days, etc. Count the days and you have the interest rate.

Since every penny is one part per thousand, count the thousands you have in the fund and that is the number of dollars you get with every penny. Have a hundred grand? You get a hundred bucks a week. That's 200 per pay period; how does that compare with your contribution listed on your pay stub? ? About the same? Less? More?

For me, when those two numbersbecameequal, it was the signalto increase my contribution.

Dave