New G Fund Rate?

yep, i spent part of the weekend figuring out how much I needed to spend on:

insulation to void the ice dam/wall leakage/potential house electrical fire scenario I dealt with last winter (just read about electrical fires from ice dam wall leakage yesterday while doing home repair research :eek:),

finally create a liveable house tempwise for summer time (totally inadequate on the cooling end of spectrum),

get some improved natural lighting (biggest dissatisfaction with home is it's dark), and

re-roof -if I want to get it all done now before rates go screaming up. Figured out I've got about half of what I need saved in the bank so far-will take another 5-8 months yet to get the savings up to cover everything needs doing, so am thinking it's maybe time to get the TSP loan before G fund rate runs much higher.

I hate thinking about debt burden again, but if I'm going to do it, better go ahead and do it now (and get enough to plow into Roth for next couple years too, while I'm at it too).
 
Today the fed bought up lots of treasuries, lowering the yield. Does this in effect lower the G fund rate from its already historic lows?
 
rtrhed said:
I thought we were guaranteed a certain rate of return in the G Fund as government employees. Or is that just an old wives tale?
Click to expand...

The rate fluxuates, last I looked, it was at 2.875% and its last move
came from a previous rate of 2.75%. I'm not sure what the moves are
based on, but in the good old days, it was common to see a penny
every 3-4 days. Now, its a longer wait for a full penny gain. :)
 
rtrhed said:
I thought we were guaranteed a certain rate of return in the G Fund as government employees. Or is that just an old wives tale?
Click to expand...

The only guarantee is that is will not earn less than 0%. That is to say, you are protected from losses, but you may not keep up with inflation either.
 
I thought we were guaranteed a certain rate of return in the G Fund as government employees. Or is that just an old wives tale?
 
With this pitiful earning rate, it's probably better just to contribute enough for the 5% matching, the rest stays in my pocket or going to an IRA so that I can short this market.

Any thought?

By the way, do you have a guide on how to correlate the gain/loss from those TSP funds into the actual earnings?
 
squalebear said:
Just a note: It would appear that the Fund Managers have made a change
(possibly temporary) on how they are paying out the (G) Fund. On Friday
the (G) paid out 0.0015 TSP Cents instead of its traditional .0007-.0008
TSP Cents. Today, the (G) Fund paid out 0.0015 TSP Cents as well, in lieu
of its traditional 0.0022-.0023 TSP Cents.

Current Loan Rate remains at 2.125% and I'm sure the figures will result in
the same (G) Fund payout overall. But this is something different then the
norm and I wanted it to be brought to your attention. Maybe this was a
move to change the status quo and avoid timing of the Monday's normally
higher return. Anyway, I thought you'd like to know.
Click to expand...

OIC said the blind man, thanks for the clarification. :D
 
Just a note: It would appear that the Fund Managers have made a change
(possibly temporary) on how they are paying out the (G) Fund. On Friday
the (G) paid out 0.0015 TSP Cents instead of its traditional .0007-.0008
TSP Cents. Today, the (G) Fund paid out 0.0015 TSP Cents as well, in lieu
of its traditional 0.0022-.0023 TSP Cents.

Current Loan Rate remains at 2.125% and I'm sure the figures will result in
the same (G) Fund payout overall. But this is something different then the
norm and I wanted it to be brought to your attention. Maybe this was a
move to change the status quo and avoid timing of the Monday's normally
higher return. Anyway, I thought you'd like to know.
 
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:
 
Corvette said:
Is todays's G fund increase an error? It is up .0015 today.

I will take the extra money gladly.:)
Click to expand...

G fund yield playing catch up?

_tnx
 
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...
 
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...
 
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."
 
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