Is CASH a better option right now than the Thrift Savings Plan (TSP) G fund?

FinEd for Feds is dedicated to providing financial planning education that is relevant for U.S. Federal Government Employees. Federal Employee benefits are complicated yet extremely valuable. Our goal is to make your benefits easier to understand and explain how they integrate with other aspects of your financial life. Ultimately, we want you to be educated during your working years and to feel confident and empowered to retire comfortably from federal service. Discovery Wealth Planning LLC is a Registered Investment Advisor. We are fee-only, which means we do not sell products for a commission. We are also a fiduciary and we put client interests first 100% of the time. We offer one-time and ongoing financial planning engagements with a CERTIFIED FINANCIAL PLANNER™ for U.S. Feds. To learn more, please visit This channel is purely educational and should not be considered as financial, legal or tax advice.

Discovery Wealth Planning LLC (“DWP”) is a registered investment advisor offering advisory services in Virginia, Maryland and Washington, D.C. and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training.

This communication is for informational purposes only and is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon as the sole factor in an investment making decision.

Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal the performance noted in this publication.

The information herein is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible pursuant to applicable laws, DWP disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose.

All opinions and estimates constitute DWP’s judgement as of the date of this communication and are subject to change without notice. DWP does not warrant that the information will be free from error. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information is at your sole risk. Under no circumstances shall DWP be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided herein, even if DWP or a DWP authorized representative has been advised of the possibility of such damages. Information contained herein should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.

This site may contain endorsements by non-clients who are not users of our products and/or services. These endorsements reflect their own opinions or views and may not be representative of our own. We are not affiliated with users who provide endorsements and they are not paid or otherwise compensated directly or indirectly for them….(read more)

LEARN MORE ABOUT: Thrift Savings Plans

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Is Cash a Better Option Than the Thrift Savings Plan (TSP) G Fund?

Investors are always on the lookout for the best options for their hard-earned money. One such comparison often arises when considering whether cash is a better option than the Thrift Savings Plan (TSP) G Fund. Both choices have their merits, but it ultimately depends on an individual’s financial goals, risk tolerance, and market conditions.

The TSP’s G Fund is known for its stability and safety. It is a government security fund that invests in US Treasury bonds. These bonds have a guarantee from the US government, making them one of the most secure investment options available. For risk-averse investors who prioritize capital preservation, the G Fund provides an attractive choice with a reliable rate of return.

On the other hand, cash offers immediate liquidity and no risk of capital loss. Holding cash reserves can be advantageous during uncertain times or when there is an expectation of short-term expenses. It provides individuals with the freedom to access their funds whenever required without any penalties or restrictions. However, holding onto cash for extended periods can lead to missed opportunities for growth and potential loss due to inflation.

To determine which option is better, one needs to consider the current economic climate. In times of volatility or uncertainty, cash can be a safe haven, protecting investors from potential market downturns. This was evident during the global financial crisis of 2008, where cash became an appealing choice for many due to the instability of traditional investment options.

However, in more favorable market conditions, the G Fund holds an advantage. When the economy is growing steadily, the G Fund offers the potential for higher returns compared to cash. While not as significant as the returns from riskier investments such as stocks, the G Fund’s conservative approach can still lead to moderate long-term gains.

Another factor to consider is an individual’s risk tolerance. For those who are risk-averse or near retirement, the G Fund can be an ideal choice. Its stability and guaranteed returns provide peace of mind, ensuring that the invested capital will not diminish. On the other hand, individuals with a higher risk tolerance may opt for allocating a portion of their portfolio to cash, while diversifying the remainder into potentially higher-yielding assets.

It is important to note that the G Fund is designed as a long-term investment option for retirement, and therefore, it may not be suitable for individuals with short-term financial goals. For such investors, cash may offer the flexibility and security they desire.

In conclusion, the choice between cash and the TSP’s G Fund depends on an individual’s financial objectives, risk tolerance, and the prevailing market conditions. While the G Fund offers stability and guaranteed returns, cash provides immediate liquidity and protection during times of uncertainty. It is advisable to consult with a financial advisor to evaluate one’s specific circumstances and make an informed decision that aligns with their goals and risk appetite.