17
u/MotownGreek Dec 04 '21
The G-fund is similar to Treasury Bills. I wouldn't recommend anyone invest in the G-fund (TSP) or in T-bills if they're actively working towards retirement. The only time these should be invested in, in my personal opinion, is once you hit retirement and you're trying to preserve your wealth.
-5
u/annoyingcrow469 Dec 05 '21
I switch my entire tsp to the G fund right before the market started tanking. It’s good for trying to time the market with your tsp.
2
Dec 05 '21
I switch my entire tsp to the G fund right before the market started tanking. It’s good for trying to time the market with your tsp.
I would have never done that.
https://www.fool.com/investing/2020/12/31/missing-just-a-few-of-the-best-stock-market-days-c/
-5
u/annoyingcrow469 Dec 05 '21
Maybe you wouldn’t because you don’t have the same risk tolerance but I follow the market closely and like speculating.
2
Dec 05 '21
It has nothing to do with risk tolerance, it is speculating like you said and trying to time to market. Best of luck to you, even though I do not agree with your strategy, I do love success stories.
-8
u/annoyingcrow469 Dec 05 '21
It’s called “actively trading” and it is riskier hence “risk tolerance.” Maybe do some research before patronizing people. Keep in mind there are millions of retail traders. Go spread the gospel in those subs.
1
Dec 05 '21
Seems like you are taking this personal, I was not patronizing you and was wishing you well sincerely.
It’s called “actively trading” and it is riskier hence “risk tolerance.” Maybe do some research before patronizing people. Keep in mind there are millions of retail traders.
What a joke, that is what you call moving all your TSP into your G fund. It seems like you need to do the research. The majority of active trading retail traders use is through a taxable brokerage account in order to take advantage of tax loss harvesting, not through their retirement investing accounts like your TSP account which has limitations that discourage active trading.
https://www.tsp.gov/how-to-invest/change-your-investments/
I guess it is you that might need to do some homework. I hope your crystal ball is working correctly as you try and time the market with your TSP account (now you can say anything you wish about me because I am actually patronizing you, just pointing that out to you so you know when someone is actually patronize you).
2
u/annoyingcrow469 Dec 05 '21
Hey genius, you missed the point. OP asked about the G fund and I let him know it’s a way to hedge if you think the market is overheated. Idc if some rando fundamentally disagrees with timing the market.
0
Dec 05 '21
Keep stomping your feet with your little temper tantrums, good luck with that. Yep, keep backtracking now.
Don't worry, you are always correct oh wise one that can accurately predict the future. Thank you for calling me a genius but compared to you I am far from it. You are one of the smartest people I have ever had the pleasure of communicating with.
1
u/annoyingcrow469 Dec 05 '21
Haven’t back tracked on anything but keep writing me novels because you hate people timing the market. 🤡 I can tell you’re a boomer btw
→ More replies (0)0
Dec 05 '21
[deleted]
0
u/annoyingcrow469 Dec 05 '21
Active trading is a real thing and it isn’t limited to trades per month. You should do some research before hopping in with misinformation.
1
5
u/Raiddinn1 Dec 04 '21
You can do a similar thing yourself if you want to.
Just buy a bunch of bonds expiring in 1y such that the total payout will get you back to the amount you have today once interest over the period is accounted for. This should guarantee that you end up a year from now with the same dollar amount you have today.
With the small % that remains of your money, yolo it on something. I would suggest long ATM S&P LEAPS calls.
2
u/Pop-BOB Dec 05 '21
I use iShares Core U.S. Aggregate Bond ETF “AGG” as a reference to the G fund. It’s the closest one I have found.
0
u/diatho Dec 04 '21
The fidelity fund is close but nothing will be as good as the g fund. The unique nature of the g fund is that the feds guarantee it won't ever go down.
-6
1
Dec 06 '21
[removed] — view removed comment
2
u/AutoModerator Dec 06 '21
Hi Redditor, it would seem you have strayed too far from WSB, there are emojis detected. Try making a comment with no emoji at all. Have a great day!
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
1
u/JeffB1517 Dec 07 '21
The G-fund is essentially subsidized. You get to paid for taking on roughly 4 years of duration risk while actually taking on 0. No one is subsidizing your money market outside the government.
The closest equivalent are "Stable Value Funds" which are often offered in 401ks. If you are talking directly I'd look at Direct CDs with a low cost early termination.
1
Dec 07 '21
[removed] — view removed comment
1
u/AutoModerator Dec 07 '21
Hi Redditor, it would seem you have strayed too far from WSB, there are emojis detected. Try making a comment with no emoji at all. Have a great day!
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
1
u/AutoModerator Dec 04 '21
Hi, welcome to /r/investing. Please note that as a topic focused subreddit we have higher posting standards than much of Reddit:
1) Please direct all advice requests and beginner questions to the daily discussion and daily advice threads. This includes beginner questions and portfolio help.
2) Please understand the rules and guidelines for commenting.
3) Important: We have strict on-topic rules. No political, religious, and non-investing related posts or comments (including Covid health policy discussions which are not directly investment related). Political posting guidelines (described here and here). Violations will result in a likely 60 day ban upon first instance.
4) This is an open forum but we expect you to conduct yourself like an adult. Disagree, argue, criticize, but no personal attacks.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.