G Fund

[Gilligan]

Re: G Fund - Chasing the Penny

Is the Daily rate of the (12 yr) (10+5-3) Bond really driving our Penny Pay Day?

The rate I use is the TSP LOAN rate which presently is 4.625%. I dont try to catch the penny everytime. I did much better in the S and I yesterday. I mainly use the G-fund as a haven when the markets drop. The pay day has been about a week apart but I believe that will change in April.

I agree with Wheels, there are no dumb questions, I'm still learning also.

 

[Dave M]

There is another term in the equation and it is negative. Time it perfectly and you get all of G. Have earnings on the off-days in the stock funds, C. But then you must subtract the earnings you did not get because you were in the G-fund, call it little-c. So

G+C-c expresses the change in account value. Rearrange it to (G-c) + C and you see that if the market did well enough you come out behind by being 100G.

In the end it is akin to keeping some money in the G-fund at all times, say 35G, heh.

Dave

 

[DenverAce]

Thanks for the comments Guys.

I love to Learn. Since I found the site, I have been advocating to a lot of others that they at least "watch" their TSP Balances. Watching the dynamics will allow some people to begin to Learn.

Anyway - I LEARNED in the "feeling, kinesthetic, hands-on" way Yesterday. Was 100% G to catch the Penny on the 13th or 14th. Did not know by Mondays deadline of course that I had caught the Penny and therefore was still 100% G on Tuesday. I made my $200 and Missed Making $2,400???

I will have to sleep on Dave's equation some. That little c was huge yesterday! It does however, seem like an equation that expresses value compared to perfection.

 

[grandma]

Fedsmith.com had this lead-in this morning:

How Federal Retirement Funds are Used to Finance Federal Deficit
The Treasury stopped making contributions Feb. 17 to the G-fund. The second step came March 3 when Treasury made a bookkeeping adjustment to the $15 billion exchange stabilization fund used in currency markets. Step three was to suspend investments in the civil service retirement and disability fund.
Date Posted: 3/15


And this is the article:
http://tinyurl.com/q7ypt

It doesn't sound to me like any of us in G fund are getting anything in there except our `donations.'

 

[Rod]

Fedsmith.com had this lead-in this morning:

How Federal Retirement Funds are Used to Finance Federal Deficit
The Treasury stopped making contributions Feb. 17 to the G-fund. The second step came March 3 when Treasury made a bookkeeping adjustment to the $15 billion exchange stabilization fund used in currency markets. Step three was to suspend investments in the civil service retirement and disability fund.
Date Posted: 3/15


And this is the article:
http://tinyurl.com/q7ypt

It doesn't sound to me like any of us in G fund are getting anything in there except our `donations.'

I wouldn't worry about it. Think about it this way- the (G) invests in Gov. Securities, which equates to "security for the gov"!:cheesy:

Heck, our money in our checkings/savings account isn't "really" there either and is "raided" all the time by the banks themselves.

Our only peace is the FDIC. Payment of principle AND interest in (G) is also guaranteed by the US Gov. Pertaining to the US Treasury not making any contributions to the (G), the article you posted continues to say:

"It's a temporary tool and as soon as Congress raises the limit, all interest will be restored and there will be no adverse consequences for G-fund investors,"

So, let's not sensationalize it as if contributions have been stopped for good.

If we can't trust the Gov. with our (G) money, how can we trust them with our money in the banks??? Might as well place the $$$ underneath the mattress.

I just don't see any reason to fuss, unless they began raiding us in equities which ARE NOT backed by the US Gov.

God Bless

 

[charmedboi82]

My issue isn't with the taking of the money itself but rather with the absurd spending and lack of fiscal policy. This G Fund matter is just a symptom of the problem.

 

[Dave M]

Let The G-fund pay once every 5 trading days. Let c be the average daily return of the stock funds during those five days. Then we have the inequality,

(G+4c) > 5c, or

(G-c) > 0.

This will be true sometimes and untrue at other times, obviously. How often? Who knows? You can look it up. Let's say it is true a third of the time by varying magnitude. That means you are going to lose by 2/3rds of c. Therrefore you get (4 and 1/3) out of the possible 5 for 86%, equivalent to a 14G 86C permanent unchanging allocation.

Dave

 

[Rod]

My issue isn't with the taking of the money itself but rather with the absurd spending and lack of fiscal policy.

Unfortunately, that always has been and will always continue to be a problem.

Heck, we're all gov. employees here. We know how wasteful the spending truly is.

God Bless

 

[Wimpy]

Our only peace is the FDIC...

If we can't trust the Gov. with our (G) money, how can we trust them with our money in the banks??? Might as well place the $$$ underneath the mattress.

The FDIC is as bankrupt as the PBGC and Social Security. The FDIC was designed to counter the hoarding of dollars. They are totally helpless when it comes to the dis-hoarding of dollars.

The mattress trick worked back during the depression (deflationary times) when the dollar was KING.

The KING is about to be de-throned. Better put something with more tangible value between the mattresses.

In spite of the FED's 'fear of inflation' buzz, they are committed to creating inflation.

A comic book between your mattresses will hold more of its value than your paper dollars will when the dollar con-fidence game runs out of willing participants.

 

[Rod]

The FDIC is as bankrupt as the PBGC and Social Security.

Well, since you feel that way it sure would be unwise of you to have any bank accounts, wouldn't it?

God Bless

 

[FUTURESTRADER]

I made a 10% transfer out of G before deadline yesterday into S and I and TSP gave me that 10% on the close of the S and I for that day???..for an unexpected +$381..adds up to the dollar. First time I've noticed this. Anyone else? or another explanation??

thanks

 

[dell]

Congratulations !! You lucked out. I did a transfer on 3/14 to take place on 3/15. The transfer took place at the close on the 15th but my balance from the 14th to the 15th did not change; only my allocation. It does get frustrating.

Dell

 

[Wimpy]

Well, since you feel that way it sure would be unwise of you to have any bank accounts, wouldn't it?

God Bless

No, not really. It would be unwise, however, for a bank depositer to accept the 4 cent FDIC sticker, in the bank window, as a suitable hedge against a systemic collapse of the banking system and/or U.S. dollar.

 

[Rod]

No, not really. It would be unwise, however, for a bank depositer to accept the 4 cent FDIC sticker, in the bank window, as a suitable hedge against a systemic collapse of the banking system and/or U.S. dollar.

 

[cowboy]

I made a 10% transfer out of G before deadline yesterday into S and I and TSP gave me that 10% on the close of the S and I for that day???..for an unexpected +$381..adds up to the dollar. First time I've noticed this. Anyone else? or another explanation??

thanks

This is a TSP imput mistake and will most likely be corrected prior to your quarterly statement coming out. I visited with TSP and they informed me that they claim they review all accounts quarterly and correct any errors and they recommend that you call them if you believe they have made a mistake on your quarterly statement as that is the oficial tracking of your account. I had a mistake on mine and they review it if you call in. The person informed me that my account at that time was being reviewed constantly as I made interfund transfers and was active. To make a long story short the TSP called me back and the mistake was actually mine as I was not reading the date of the transfers on the statement correctly. Interfund verifications are not an official balance on the account is my understanding.

 

[Gilligan]

Payday for G fund

I was getting tired of treking back and forth to Mr Howell's Hut to get his G- fund prediction. BTW, he said if it didn't appear on the 17th it would be here on the 20th.

Mr Howell said to watch for the penny on the 27th, however there is a slight chance it could arrive on the 24th!

 

[nnuut]

"G" Penny 3 April 2006.
Carnac the Magnificient told me! :nuts:

 

[mlk_man]

I don't know, paying on a Monday, that may be a stretch..........

 

[nnuut]

Nnuutin' to it; this year!!!

 

[Oldcoin]

"G" Penny 3 April 2006.
Carnac the Magnificient told me! :nuts:

Anyone herd from Carnac?