Is the Thrift Savings Account secured by the full faith and credit

[Leon44]

of the US Government? Many 401K plans have certain guarantees and obviously many bank related products have FDIC insurance.
For example: outside of inflation concerns are the monies in the "G" fund guaranteed by the US government? If so..Then it is just as good as FDIC insurance.

 

[alevin]

Hello Leon and welcome. You asked 2 very different questions in these 2 sentences. Your investments in CSI and F are NOT backed by full faith and credit of USG. G fund is special-issue non-public treasury DEBT, as in short-term bonds. Payment on Bonds can be defaulted, sovereign bonds-probabilities are less, until they are not-see Greece and Spain. USG can borrow against $ in the G fund. full faith and credit they'll pay us back, yes-someday. They've done it (borrowed) a few times the past 20 years, and paid us back fairly quickly, that may not always be the case, the way things are headed. A good portion of F is also in longer-term treasuries.

of the US Government? Many 401K plans have certain guarantees and obviously many bank related products have FDIC insurance.
For example: outside of inflation concerns are the monies in the "G" fund guaranteed by the US government? If so..Then it is just as good as FDIC insurance.