G-Fund Concerns (Pillaging the G-fund)

[tsptalk]

Someone sent these to me and I am passing them along, but don't know too much about it myself...

http://www.tsptalk.com/images/mb/G-Fund-Irreplaceable-June-2015.pdf

http://www.tsptalk.com/images/mb/Oppose-any-change-to-G-Fund-interest-rate-June-2015.pdf

http://www.tsptalk.com/images/mb/FPC-Senate-letter-G-Fund-7-15-15.pdf

Basically Congress wants to reduce the rate of return of the G-fund and use the money for something else. I'm not saying I'm for this but JFK's famous quote comes to mind: "Ask not what your country can do for you. Ask what you can do for your country."

As bad as this may be, one of the more disturbing things I read in them was:

"More than 2 million TSP participants (45.10%) hold the G Fund as their sole investment choice."

Our systems must have been on Sell signals when they looked.

 

[Cactus]

Just like our government to count on spending money that isn't there. As soon as the rate goes to zero the FRTIB will have to re-compute the allocations for the various L Funds. This will result in money leaving the G Fund to make up for the reduced return. Next retires will see they are getting nothing for their money just like their bank account now. They will pull their money out of TSP altogether. By the time it's done they will have destroyed TSP and been left with an empty bag to spend. Thanks for more pain guys.

 

[ravensfan]

I can remember when the TSP first came into being. In those days, it was pretty much a given that the G Fund would earn at least 4% every year. Today, it can't even keep up with inflation. Now Congress wants to devalue it even further so can use the money for something else. Just shameful.

 

[Boghie]

Well, according to TSP there are $191 Billion in assets in the G Fund...

Now, we get an article documenting the huge deficit spending in November with this snippet:

The first move was to replenish all of the funds depleted under the “extraordinary measures,” which is what sent debt skyrocketing on Nov. 2.

Such spikes are normal. In 2013, when a debt deal was reached, the government added $328 billion to its borrowing in one day. After the August 2011 debt deal, the amount rose $238 billion in one day.

But the Nov. 2 spike topped them all, at $339 billion in one day.

Of that, about $199 billion is public debt, which is money borrowed from outside sources, and $140 billion is borrowing from within government accounts.

Basically, the Treasury 'monetized' $140 Billion of the $191 Billion in G Fund and Pension assets since hitting the debt limit in March...

Anyone out there feel safe???

Libs will be mad that Conservatives did not call the credit card companies and hope for a credit limit increase. Folks, the politician failed lawyers think that writing a letter gets them a credit increase - but do they get one??? Nope, at some point nobody buys the stuff. Fiscal Conservatives will be mad that we are not living within our means - but when they get in there is all this pent up spending on other 'needs' that just has to happen.

What I am saying is that politicians wiped out your savings and are now filling it with new debt with a promise to repay. Someday they wont...

 

[JTH]

Makes a great case for transferring over to an outside ROTH IRA at the earliest available opportunity.

 

[Frixxxx]

Makes a great case for transferring over to an outside ROTH IRA at the earliest available opportunity.

They'll start adding to the management fees next.....1% government participation fee.....then 2%....They'll get to it.....

 

[Boghie]

They'll start adding to the management fees next.....1% government participation fee.....then 2%....They'll get to it.....

Ouch, hadn't thought of that one.

Should have. Look at our energy, phone, television, and now internet bills. They tack on 'little' fees and taxes that seem to grow and become more complicated as time goes on. They also impose hidden taxes. Yowser...