Geithner raiding state Pensions, eyeing G-Fund next

[CountryBoy]

Yeah it's been awhile, but had to get some things in order. Now about our Credit Ceiling.

As a reminder, the only solution that Geithner currently has to run the government, at least until August 2 when even the current funds (state pensions and Treasuries) runs out, is to slowly drain the debt in non-marketable accounts, in the form of Suspension of G-Fund and ESF reinvestments, as well as the Redemption and suspension of of CSRDF Investments. Now I don't know what some of the acronyms mean or care, but I do know what G-Fund means and it's been bandied quite frequently here lately as a source of debt payment.

The Treasury has used three of the tools available: Suspending G-Fund reinvestments, redeeming investments of the Civil Service Retirement and Disability Fund (CSRDF), and suspending new CSRDF investments. In sum, those options use about $147 billion of roughly $264 billion available to Treasury to create room to issue new marketable debt.

I'm retiring at the end of Sept and wondering why should I keep my money in the G-Fund or TSP for that matter, when this is at least 3rd article I've read stating the Feds are going to raid the G fund. They said they will pay it back, but they also said that with SS. It sounds like our G fund is in danger and when I retire, I'm seriously thinking about pulling a bunch of money and putting it in hard commodities.

I haven't invested in TSP for 3 years, because the Gov't has been talking about doing this for over 3 years and they have finally begun doing it. During the past 3 years, I’ve become debt free, new siding, new roof, new windows, new AC and Furnace, new batroom and other hard commodities I'd rather not mention on an open forum.

I've got almost halfway to 7 figures tied up in the G Fund and I don't like the sound of what I've been reading. Need a little advice here, what others think or does anyone think about this?

And please, don't give me where is the link BS comment. Do your own work and find it. It's happening now. I want some serious responses and not looking to debate. That's why I left.

Thanks,
CB

 

[Show-me]

My plan was always to transfer my TSP into a private brokerage account not because I am scared of the .gov stealing my TSP, but because I want better low risk investment options and the ability to hedge inflation (gold/silver).

 

[poolman]

Yeah it's been awhile, but had to get some things in order. Now about our Credit Ceiling.

As a reminder, the only solution that Geithner currently has to run the government, at least until August 2 when even the current funds (state pensions and Treasuries) runs out, is to slowly drain the debt in non-marketable accounts, in the form of Suspension of G-Fund and ESF reinvestments, as well as the Redemption and suspension of of CSRDF Investments. Now I don't know what some of the acronyms mean or care, but I do know what G-Fund means and it's been bandied quite frequently here lately as a source of debt payment.

The Treasury has used three of the tools available: Suspending G-Fund reinvestments, redeeming investments of the Civil Service Retirement and Disability Fund (CSRDF), and suspending new CSRDF investments. In sum, those options use about $147 billion of roughly $264 billion available to Treasury to create room to issue new marketable debt.

I'm retiring at the end of Sept and wondering why should I keep my money in the G-Fund or TSP for that matter, when this is at least 3rd article I've read stating the Feds are going to raid the G fund. They said they will pay it back, but they also said that with SS. It sounds like our G fund is in danger and when I retire, I'm seriously thinking about pulling a bunch of money and putting it in hard commodities.

I haven't invested in TSP for 3 years, because the Gov't has been talking about doing this for over 3 years and they have finally begun doing it. During the past 3 years, I’ve become debt free, new siding, new roof, new windows, new AC and Furnace, new batroom and other hard commodities I'd rather not mention on an open forum.

I've got almost halfway to 7 figures tied up in the G Fund and I don't like the sound of what I've been reading. Need a little advice here, what others think or does anyone think about this?

And please, don't give me where is the link BS comment. Do your own work and find it. It's happening now. I want some serious responses and not looking to debate. That's why I left.

Thanks,
CB

Hi Countryboy,

I have recently been thinking about the federal government using our Retirement money out of the G - Fund to keep the government running.

I'm sure if they do it now they wouldn't hesitate to do it again if needed - But -

In all Honesty I couldn't think of a safer place for our money to be than a per se' Tsp Account or Federal Credit Union or a media that has and has to have Higher standards than any Bank's or financial institutions have to have. The federal government would have to be at the brink of disaster for them to take our money and default on it.

I hear about all the Bank's that go Belly up and that have gone Belly up since 2007. Well if a Bank goes Belly up and your money is in that bank and there where not stipulations for account holder's to either get there money or a percentage of there money or whatever then Your Chit out of luck and Your money disappears.

Financial Brokerages, Institutions, (TDA, Fidelity, Bear Stearns, etc...) can go Belly up or Fail.

I see our TspAccounts being one of the safest retirement means that there is. There are too many Big Boy Ego's on the line to be involved with this type of financial disaster or Failure.

The saying to Big to Fail does have merit when it's the Federal Government.

I have No problem leaving my Wife's and my money in the Tsp Account when we retire. I don't know if this was the kind of answer you where looking for but that is how I feel.
______________________________________________________________________________________________________

A couple of other Points.

I try to avoid debates myself. It is the fastest way that I will become dis-involved with whatever I'm involved in.

Congratulations on You Retiring, You have earned and deserve retirement.

 

[nasa1974]

CB,
Nice to see you back. Some things you will have to do. Obviously get the information from TSP on how to move your money and find an investment firm that you trust. It really isn't a bad idea to get your hard earned dollars out of the TSP.

 

[James48843]

Nice to see you back. You were missed.

 

[nnuut]

I'm going to put mine in Mason Jars and bury them in my backyard!

 

[CountryBoy]

Thanks for the advice guys,

For the time being I plan on staying though I'll withdraw heavier early to increase my stack (ala Show-me) and look around to see what is out their. The 3 years have been good stacking years and plan on stacking higher. Truer words Poolman and thanks. Norm I'm using Ammo cans for mine. Yeah NASA, it's a tough call.

Well you boys taker easy and stay well if'n I don't see ya'll again. I do miss so of ya'll.

CB

 

[Steel_Magnolia]

Great to hear from you, CB. You've been in our thoughts while you were gone.

About four months ago I pulled all of my TSP out and put it into an IRA account with Tradeking. Five dollar trades and very easy to use platform. I also have an account with Scottrade, $7 trades and excellent research tools. Since I made the switch I feel like I have a lot more control over the funds. That's been both good and bad. While I have an infinite variety of places to choose from, I have to do a lot more research. But I've learned of several more places to do that research and it's working well for me so far. And I have abilities to, for example, buy inverse ETF's, mutual funds and precious metals, just to name a few choices that I would never have had with my TSP account.

 

[Boghie]

Cowboy,

Don't just miss us, join us

If you think about it you have 'safe' zones via F/C/S/I. I know those aren't 100% 'safe' as investments, but they cannot be 'appropriated' by the Treasury via some backdoor method.

The nicest thing one can say about the 'G Fund' is that it is advertised as 100% safe - AND it has a much better return than money markets. My recommendation is that you transfer the money you want 100% safe to a brokerage firm and invest that money in true money market assets. Also, I would run - not walk - to a Ray Lucia or Ric Edelman affiliate. Edelman's website has a great initial portfolio designer; Lucia's concept of 'buckets of money' seems to be a perfect retirement plan. Both have actually referenced each other on their radio shows as financial advisors they trust - and not in an advertising way.

The 'Buckets of Money' approach is designed around multiple buckets. Bucket (1) contains enough safe assets to survive on for between 5 and 7 years with no risk (money market, annuities, and other very safe assets). Bucket (2) contains safe assets that currently return about 5% - 7%, but are more volatile (bonds, REITs, etc). Bucket (3) is stock and stock mutual funds. The idea is for Bucket (1) to give Buckets (2) and (3) time to grow and resolve volatility. I like the idea - none of us have enough assets to sit around like a trust funding Kennedy.

By the way, Lucia's main office is almost across the street from me. He offers a free review that I used. The radio personality called 'Professor Plum' (yuk, yuk - but I can't remember his name. He is a FERS and State retirement expert) gave us the review. It was obvious he enjoyed yakking with me and the wife thing. He spent about two hours with us and in the end told us we were doing quite fine. Absolutely NO hard sell.

Finally, me thinks there is bubbly under 'hard' assets like gold. All you need to have that bubble deflate is for Bernanke do his job and defend the dollar. That my come into play this month. Or, Congress forces sanity on gubmint spending. Or, a President Reagan gets elected. Then hard assets will devalue rapidly. Just my opinion. And not worth much.