The Thrift Savings Plan’s G Fund had the highest percent gain last year. Does this mean all federal employees should move everything to the G Fund? Absolutely not. But, there are reasons why you would choose to invest in the G Fund this year.

In this episode we…
• Compare the G fund returns over the last 15 years to other core TSP funds
• Make suggestions of when to invest or not in the G Fund

Welcome to Financial Planning 4 Feds. We are dedicated to educating federal employees on how to maximize value from their government benefits by developing and executing a financial plan.

0:00 Intro
1:14 Compare the G fund returns over the last 15 years to other core TSP funds
4:34 suggestions of when to invest or not in the G Fund

Federal employees and their spouses are invited to complimentary educational workshops covering their federal benefits. For details, visit:

Federal Benefit Resources:

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G Fund Wins!! Should You Invest?

Investing is an essential step towards building wealth and securing a financially stable future. With a wide array of investment options available, it can be challenging to determine which one is most suitable for your personal financial goals. One investment option that often catches the attention of investors is the G Fund, known for its reputation of consistent success. But should you invest in the G Fund? Let’s delve deeper to find out.

First and foremost, what is the G Fund? The G Fund, or Government Securities Investment Fund, is one of the investment options within the Thrift Savings Plan (TSP) offered to federal employees and members of the armed services in the United States. The G Fund holds Treasury securities issued by the U.S. government and offers a safe place to invest your money without the risk of losing your principal investment.

The G Fund has consistently outperformed many other investment options due to its stability. Being backed by the full faith and credit of the U.S. government makes it an attractive choice for risk-averse individuals. The G Fund’s interest rate is based on the weighted average yield of all outstanding U.S. Treasury notes and bonds. This rate is deemed to be risk-free and reflects the current market conditions, allowing investors to benefit from a reliable return on their investment.

Another factor that makes the G Fund appealing is its liquidity. Investors can freely make withdrawals, transfers, or allocate funds between other investment options within the TSP at any time. This flexibility ensures that investors can easily access their funds whenever needed, making it an ideal option for those who value liquidity.

Moreover, the G Fund provides a hedge against inflation. Inflation erodes the purchasing power of money over time, as the cost of goods and services increase. Treasury securities held by the G Fund typically keep pace with inflation. Investing in the G Fund can protect your money from losing value during inflationary periods, allowing your savings to maintain their real purchasing power.

Despite its numerous advantages, the G Fund does have some drawbacks that should be considered before investing. The main disadvantage is its conservative nature. The G Fund aims for stability and preservation of capital rather than high returns. As a result, the G Fund’s interest rate often lags behind other investment options during times of economic growth. Consequently, investors with a high risk tolerance or those seeking substantial returns might find the G Fund less appealing.

The G Fund is primarily suited for individuals looking for a safe and steady investment option. It offers guaranteed returns, liquidity, and protection against inflation, which make it an attractive choice for some investors. However, it may not satisfy those seeking high-risk, high-reward investments.

Ultimately, deciding whether to invest in the G Fund or not depends on your personal financial goals, risk appetite, and retirement plan. It is always recommended to consult with a financial advisor who can guide you through the decision-making process and help you make informed choices based on your unique circumstances.

In conclusion, the G Fund can be a prudent investment option for risk-averse individuals who prioritize stability and preservation of capital. Its track record of consistent performance, liquidity, and protection against inflation make it an attractive choice for certain investors. However, it may not be the best fit for those seeking high returns or having a higher risk tolerance. As with any investment, thorough research and consultation with a financial professional are crucial to determine whether the G Fund aligns with your financial goals.