Episode 56 - TSP G Fund - What You Need To Know

I'm a huge fan of the Thrift Savings Plan offered to Federal Government employees, including military personnel. A cheaper investment platform I do not know. The funds in the TSP average 3.3 basis points in expenses. That means for every $1000 you have invested in the TSP your cost is 33 cents. That's incredible Think about it another way, if you pay 1% in investment expenses it's going to cost you $10 per $1000 per year. Your investment manager must have some pretty good chops to overcome that starting point. And, in fact, he/she most likely won't. In this episode I analyze the G fund in the TSP. The G Fund is the Government securities fund. I show you why you shouldn't expect more than around 3% a year in rates of return over the next decade. Doesn't mean I think it's a bad fund, it just is the reality of the interest rate cycle. Remember folks, bonds do not have capital appreciation. You get paid interest and interest only.