imported post
This is my first post here ... So, a big hello to everyone.
I have a question concerning the Thrift Savings Plan (TSP) G fund.
I understand that the G Fund's rate of return is based on short term government securities.
What I don't understand is the fact that the G Fund has been giving an average monthly rate of return of between 0.37% to 0.39% for the past 2 years, [but] the Fed has increased the prime lending rate 8 times in the last year or so. Those 8 increases of a 1/4% per increase equals a very substantial total increase of 2.0%
I can remember a few years ago when the Fed decreased interest rates, and of course the G Fund's rate of return fell like a rock at the same time ... Now, the opposite is happening, but the G Fund's rate of return has not been going up at all.
Can anyone here explain this to me?
Confused, :%
This is my first post here ... So, a big hello to everyone.
I have a question concerning the Thrift Savings Plan (TSP) G fund.
I understand that the G Fund's rate of return is based on short term government securities.
What I don't understand is the fact that the G Fund has been giving an average monthly rate of return of between 0.37% to 0.39% for the past 2 years, [but] the Fed has increased the prime lending rate 8 times in the last year or so. Those 8 increases of a 1/4% per increase equals a very substantial total increase of 2.0%
I can remember a few years ago when the Fed decreased interest rates, and of course the G Fund's rate of return fell like a rock at the same time ... Now, the opposite is happening, but the G Fund's rate of return has not been going up at all.
Can anyone here explain this to me?
Confused, :%