What is a TSP plan? How a Thrift Savings Plan (TSP) Works, TSP investment options, Can I exit TSP plans, Taxes, and TSP… You can find answers to these and more in the THRIVING WITH THE TSP Series.
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Capital Financial Advisory Group provides a structured system of wealth management through investment, financial, retirement, estate and tax planning customized to meet the individual financial needs of our clients. Headquartered in Apex, North Carolina, we specialize in helping pre-retirees from late 50s to early 80s remain financially secure in any economy.
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(919) 657-4201
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LEARN MORE ABOUT: Thrift Savings Plans
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If you’re a federal employee or member of the military, you may be familiar with the Thrift Savings Plan (TSP), a retirement savings plan that offers several investment options to help you grow your wealth over time. One of the most popular and stable choices within the TSP is the G Fund, a unique investment fund that offers an attractive combination of safety and return for participants.
The G Fund, short for Government Securities Investment Fund, is essentially a bond fund that invests in non-marketable U.S. Treasury securities. These securities are backed by the full faith and credit of the U.S. government, making them one of the safest investment options available. This means that your principal investment in the G Fund is protected from loss, providing a level of security that is unmatched by most other investment vehicles.
In addition to the safety of the G Fund, participants also benefit from a competitive rate of return. While the G Fund may not offer the high potential returns of riskier investments like stocks or mutual funds, it consistently outperforms other conservative options such as money market funds or certificates of deposit. This makes the G Fund an excellent choice for investors who prioritize capital preservation and steady growth over potentially higher but more volatile returns.
Another advantage of the G Fund is its liquidity. Unlike other TSP investment options that can fluctuate in value, the G Fund maintains a stable net asset value (NAV) of $1 per share. This means that participants can easily buy or sell shares in the G Fund without worrying about market timing or price fluctuations. This makes the G Fund a convenient and accessible option for those looking to manage their retirement savings with ease.
Overall, the G Fund is a valuable component of the TSP that can help federal employees and military personnel build a secure financial future. Its unique combination of safety, competitive returns, and liquidity make it an attractive choice for investors of all risk tolerances. Whether you’re a seasoned investor or just starting out in your retirement planning journey, the G Fund can help you thrive and achieve your long-term financial goals within the TSP.
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