The Treasury has suspended investments in the TSP’s G Fund recently, and it has caused panic among the federal employee community. In this video, Thiago Glieger discusses exactly what this means, why it happened, and what you should do about it. #retirementplanning #fersretirement #federalemployees

OTHER POPULAR VIDEOS:

[HOW TO PROTECT YOUR RETIREMENT PORTFOLIO]

[REDUCE TAXES WITH THIS PERSONAL TAX GUIDE]

[WHY FIDELITY IS WRONG ABOUT YOUR RETIREMENT]

———————————————————————————————————————–

►Visit our federal employee retirement website:

►If you’re interested in setting a time to meet with Thiago Glieger, click here:

►If you’d like help from a team of Certified Financial Planner (CFP) professionals that specialize in working with federal employees, learn more here:

—
Subscribe to TFC channel and click the Bell icon to be notified when we release new content.

The Fed Corner is a purpose built channel of information and financial planning strategies specifically designed for Federal Employees. We’re fiduciary financial planners by trade, and we talk about money, building wealth, navigating your federal benefits, financial planning, the economy, the markets, and more. The things we talk about on here are not to be taken as advice, visit our site for disclosures and seek help from appropriate advisors.

Copyright © 2023 The Fed Corner – All Rights Reserved. Investment Advisory services offered by Risk Management Group d/b/a RMG Advisors, a registered investment adviser. Reviewing, posting, commenting or otherwise engaging on this site is not intended to be endorsements of RMG, our advisors or our services, and are not compensated. Activity on this site is not a substitute for working one-on-one with an investment advisor and does not constitute an engagement. RMG only provides advisory services when a financial services agreement has been executed. Please be aware that while we monitor comments and “likes” left on this page, we do not endorse or necessarily share the same opinions expressed by site users….(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

The Thrift Savings Plan (TSP) is a retirement savings program for federal employees and members of the military. One of the funds offered in the TSP is the G Fund, which invests in short-term U.S. Treasury securities.

On August 17, 2021, the Federal Retirement Thrift Investment Board (FRTIB), the agency that manages the TSP, announced the temporary suspension of investments in the G Fund. Here’s what you need to know about the TSP G Fund suspension.

Why was the G Fund suspended?

The G Fund is considered one of the safest funds in the TSP, as its investments are backed by the full faith and credit of the U.S. government. However, due to the federal debt ceiling, the U.S. Treasury has reached its borrowing limit, and the government is unable to issue new debt to fund its operations.

To prevent the government from defaulting on its obligations, the Treasury has implemented “extraordinary measures” to fund its operations, which includes suspending investments into certain government securities, such as the G Fund.

How long will the G Fund be suspended?

The suspension of investments in the G Fund is expected to last until October 18, 2021, or until the debt limit is raised or suspended by Congress. FRTIB also announced that it will hold all G Fund assets in a special fund that will receive interest on new investments during the suspension period, which will help to ensure that participants receive the same rate of return as they would have if the G Fund continued to operate normally.

What are the options for TSP participants during the G Fund suspension?

Participants who currently have investments in the G Fund will not be able to make new contributions or allocate new investments to the G Fund during the suspension period. However, participants can still make contributions and invest in other funds offered in the TSP, such as the C, S, I, and F Funds.

Participants can also change the allocation of their existing investments among the other funds. FRTIB has advised participants to review and adjust their investment strategies based on their risk tolerance and investment goals.

What happens when the G Fund suspension ends?

Once the debt ceiling is raised or suspended and the Treasury is able to issue new debt, FRTIB will lift the suspension and allow investments in the G Fund to resume. The special fund that was established during the suspension period will be dissolved, and the interest earned on new investments will be distributed to G Fund participants.

In conclusion, the temporary suspension of the TSP G Fund is a result of the federal debt ceiling, and it is expected to last until October 18, 2021, or until the debt limit is raised or suspended by Congress. While participants cannot invest in the G Fund during the suspension period, they can still make contributions and invest in other funds offered in the TSP. Participants should review and adjust their investment strategies based on their risk tolerance and investment goals, and once the suspension ends, investments in the G Fund will resume.