G Fund Return Process

[mlk_man]

imported post

I don't think it actually went anywhere. All depends on the yield return for that particular month. Take a look at 2003 and 2004. You can see how jumpy it can be.

http://www.tsp.gov/rates/history_2003.html

http://www.tsp.gov/rates/history_2004.html

 

[tsptalk]

imported post

John wrote:

I called the TSP a couple of times too and got no results. No one there could explain how earnings are determined. I then wrote them to specifically explain to me how the earnings are calculated. They responded by saying "enclosed is the booklet you requested". This booklet explained nothing. I didn't want a booklet. I read everything there is online. No one that I have talked to has a clue as to how this thing works, although I have heard the theories on how it is supposed to work.

I think the G Fund should be valued at $1.00 a share like money market accounts where you get addtional shares with earnings as well as contributions.

I am also confused. The Fed Funds rate has been raised from 1% to 3.25% in the last 2 years. Where are we seeing this? Credit cards rates perhaps? Mortgages have barely moved but they are tied to longer term rates. So short term rates would likely be where we'd see a difference, yet the G fund has not accellerated its return at all since last year.

I wish TSP would have been more helpful to you John, because I don't get it either.