New G Fund Rate?

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Expect it to continue to drop for another reason as well.

1. If they cut interest rates today, the short term rate T-bills could drop to near zero, and
2. since TSP decided at a board meeting not too long ago to increase the percentage that they hold in short term notes vs. long term (30 year) notes,

the overall return rate of the "G" should go down even more. I read that in the TSP Board minutes not too long ago- perhaps a couple of months ago.

Interest rate cut, plus more short term vs. long term notes, means that pretty soon the G fund will be returning barely anything at all.

But then again, anything positive is good, compared to the last year of stock fund returns....:-)
 
Thanks for the heads-up James.

How do you think this will affect future TSP Loans?
 
James48843 said:
Expect it to continue to drop for another reason as well.

1. If they cut interest rates today, the short term rate T-bills could drop to near zero, and
2. since TSP decided at a board meeting not too long ago to increase the percentage that they hold in short term notes vs. long term (30 year) notes,

the overall return rate of the "G" should go down even more. I read that in the TSP Board minutes not too long ago- perhaps a couple of months ago.

Interest rate cut, plus more short term vs. long term notes, means that pretty soon the G fund will be returning barely anything at all.

But then again, anything positive is good, compared to the last year of stock fund returns....:-)
Click to expand...

It wouldn't surprise me if G fund pays out at 1.5 to 2% for the forseeable future. The FED will cut rates so it is cheaper to finanace a multi-Trillion deficit. It kind of reminds me of the sub-prime, 0% interest, and liar loans.....that put the country in this big mess......only the government is the BIG borrower now with a questionable credit rating. :mad:
What is going to happen when all these foreign countries quit buying our debt? Will it take a wheelbarrow full of American dollars to buy a gallon of milk?:worried:
 
Need to buy a loaf of bread and a gallon of milk?

wheelbarrow-mutilated.jpg
 
Anyone know what the symbol is to track the G fund is in stock program? I have Stock Broker Pro on my phone, and I have all the funds set up to get updates, but can't find a way to enter G fund in there. Also, I can't figure out how to calculate it day to day when I enter my shares and share price. I enter the info on the day I moved my money, and it keeps showing me a 3000%+ profit, with the value as 3,000,000 plus. Unfortunately, there's not that much in there. I was hoping it would show me a close approximation of it's value. I must not be understanding how $ calculations work on these programs. I'm new to stock investing, so any help would be appreciated. Thanks!!
 
Hockeyfreak said:
Also, I can't figure out how to calculate it day to day when I enter my shares and share price.
Click to expand...
tsptalk said:
Here's a copy of an old email I sent to someone earlier this year explaining how I do it. The rate and price of the G-fund have changed since then but the formula is still the same:
Click to expand...
"I watch the current loan interest rate to determine the current rate that the G fund is paying.

Let's say it is currently 4.875%. That means it's paying .0134% per day
(4.875% / 365).

With the G fund currently 11.77, that means we make .00158 cents a day.
Divide a penny by .00158 and you get 6.33.

That means we should be getting the penny every 6.33 calendar days on
average, until the loan rate changes again."
 
Hello,
When you say the current loan rate is "4.875%".To what loan rate are you referring?
Pardon my ignorance. I have watched the G rate slide down in the last while and didn't know what it was tied to.
thanks

JTH said:
"I watch the current loan interest rate to determine the current rate that the G fund is paying.

Let's say it is currently 4.875%. That means it's paying .0134% per day
(4.875% / 365).

With the G fund currently 11.77, that means we make .00158 cents a day.
Divide a penny by .00158 and you get 6.33.

That means we should be getting the penny every 6.33 calendar days on
average, until the loan rate changes again."
Click to expand...
 
thanks for the explanation. So if my math is right, that means a penny every 10.41 days.
Wow. I just retired and my estimates were all based on something like 3.75% annual rate of return in the G fund. Hmmm. Time for some rethinking there. Along with some returns in the C, S & I. But mostly G.




Frixxxx said:
He's referring to the loan rate offerred by TSP. If you take a loan out of your account, you still pay an interest rate.

http://tsp.gov/curinfo/data.html

Shows a loan rate of 2.75% as of today. Ouch!
Click to expand...
 
Is todays's G fund increase an error? It is up .0015 today.

I will take the extra money gladly.:)
 
Is it just me or has the G-fund rate gone down?

It appears to have paid out just .0015 over the last three days. :suspicious:
 
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