When people go into something like the Thrift Savings Plan, they think of it as a long term investment. Most believe that things like the bond-index F fund and the treasury securities G fund are the safest. Most also concede — and the long term numbers bear it out — that stocks outperform bonds over time.

What is the most profitable TSP fund?

For the month of March, the C Fund came out on top of all of the underlying TSP core funds with a return of 4.38%. The C Fund is also up 56.32% for the past 12 months and up 6.17% for the year-to-date. The TSP Fund with the best quarterly return was the S Fund with a return of 7.79%. The I Fund was 3rd with 3.52%.

Is TSP taxed as income or capital gains?

Money withdrawn from the Tax-Deferred TSP account in retirement is taxed as Ordinary Income and not as Capital Gains. When you elect to make contributions to the tax-free (ROTH) component of the TSP, you are choosing to pay taxes now.

Which is the best TSP fund to invest in?

The G Fund is one of the five index funds which is invested in U.S. government securities that are only issued to the TSP. It’s attractive to some because it offers the lowest volatility, allowing you to earn interest without fear of losing your principal.

Are there any TSP funds for federal employees?

There are five TSP funds that federal employees and members of uniformed services can invest in. They are: Each of these funds has one or two ticker symbols that represent the fund or track the same index.

What is missing from a TSP investment strategy?

He explains that most notably what is missing from the TSP funds is value funds, which is a key component of his strategy to boost typical index fund returns. He does make specific recommendations for TSP owners using what is available to us.

How is the G Fund rate calculated for the TSP?

The G Fund rate is calculated by the U.S. Treasury as the weighted average yield of approximately 153 U.S. Treasury securities on the last day of the previous month. By law, the G Fund must be invested in nonmarketable U.S. Treasury securities specially issued to the TSP.