Quick Answer: What Is The Safest Fund In TSP?

What is the best performing TSP fund?

The C Fund had the highest annual return for any of the TSP funds in 2019.

The S Fund finished with a yearly return of 27.97%.

This fund had the second-highest year rate of return among the TSP funds..

What is the current TSP G fund interest rate?

As of December 2020, the TSP G Fund interest rate is 0.875%.DateInterest RateMay 20200.750%April 20200.875%March 20201.250%February 20201.625%8 more rows

Which is better C fund or S fund?

Small Cap Index Investment Fund, or S Fund, follows the performance of Dow Jones U.S. Completion Total Stock Market Index. … As of December 2018, the S Fund provided the 10% returns amounting to an amazing 13.67%, even better than the C Fund.

How do you become a millionaire on TSP?

If you earn 9% on your money per year (which is historically pretty hard for a combined stock and bond portfolio to do), you can turn that into a million dollars within 25 years. It’s no wonder, then, that the average contribution years of a TSP millionaire is over 29 years.

Can TSP G fund lose money?

The G-fund is an incredibly unique fund that isn’t available anywhere else in the world other than in the TSP. When investing in the G-fund you have a guarantee from the U.S. Government that you will not lose money in this fund. … Over the last 10 years, the G Fund has averaged a return of about 2.3%.

What is the C fund?

The Common Stock Index Investment (C) Fund The C Fund is invested in a stock index fund that tracks the Standard & Poor’s 500 (S&P 500) Index. This is a broad market index made up of the stocks of 500 large to medium-sized U.S. companies. It offers you the potential to earn high investment returns over the long term.

What is the current TSP loan rate?

In May 2020, the rate is 0.75%. 13. If you separate from federal service with an outstanding loan, you must either repay it or take a taxable distribution of the outstanding balance. You will be contacted by the TSP with their options shortly after your separation.

Is the TSP F fund safe?

The F fund is low risk, but since it holds some corporate investment grade bonds it has some default risk potential. … In other words, even in a falling interest rate environment the TSP F fund can lose out to other pure Treasury funds or the TSP G fund because of a flight-to-safety risk during financial stress.

What is the best TSP to invest in 2020?

A Surprising TSP Leader The best performance among all TSP funds so far in 2020 is the normally staid F Fund. With two months remaining in the year, this bond fund is up 6.30% in 2020 despite declining 0.42% in October.

What is the TSP G fund paying?

The G Fund is invested in short-term U.S. Treasury securities specially issued to the TSP. Payment of principal and interest is guaranteed by the U.S. government. … The value of G Fund securities does not fluctuate; only the interest rate changes.

Why is TSP bad?

The TSP is possibly the most inefficient account to use for a down payment and to pay for college. Savings in an individual account or a Roth IRA would be much better for the down payment as well as paying for college. A 529 plan would also work well to pay for college.

What happens to your TSP when you die?

A beneficiary who is not a surviving spouse cannot retain a TSP account. The death benefit payment will be made directly to the beneficiary or to an “inherited” IRA. … If a beneficiary participant dies, the new beneficiary(ies) cannot continue to maintain the account in the TSP.

What is a good rate of return on TSP?

7.20%The 7.20% return is the best return for August among all of the TSP Funds. This is the fifth month in a row that the C and F Funds have provided positive returns for investors. The C Fund has ranged from a return of 12.81% in April (after falling 12.4% in March) to its lowest monthly return of 1.99% in June.

Can you take your money out of TSP?

If you are 591/2 or older, you can make withdrawals from your TSP account while you are still employed. This is called an “age-based withdrawal” or “591/2 withdrawal.” You must pay income tax on the taxable portion of your withdrawal unless you transfer or roll it over to an IRA or other eligible employer plan.

Is TSP better than 401k?

Overall, the Thrift Savings Plan compares favorably to 401(k) plans, and if you work for the Federal government and can participate, it very likely makes sense to do so. It serves as a solid adjunct to the FERS pension, and the combination of the TSP and FERS can provide a solid foundation for retirement.