Welcome to TSP Strategies

Welcome to TSPstrategies.com! This Web site is dedicated to exploring the benefits of saving and investing in the Thrift Savings Plan.

The companion book, TSP Investing Strategies: Building Wealth While Working for Uncle Sam, lays out a simple set of strategies for long-term, buy-and-hold investors to consider while investing in the TSP. This Web site and accompanying blog will build on those concepts, while focusing on new investing options and developments related to the TSP.

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Monthly Archives: July 2013



Where Are the G Fund Earnings Coming From?

Ok, I admit it.  I read the June TSP announcement on the debt ceiling with too jaundiced of an eye. Back in early June, the Executive Director posted this message, which reads in part: “…On May 31, the U.S. Treasury notified me that it is unable to fully invest securities in the G Fund at this time. However, this will not directly impact the accounts of G Fund investors.  G Fund earnings are fully guaranteed by the Federal Government, and … more

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August Annuity Rate Highest in Two Years

TSP annuity rates have climbed slowly since March, from the historically low 1.75% to 2.625% in August.  Here is the trend over the past twenty-four years: The 2.625% is still very low, to be sure, but it is a positive trend.  It could be a slow-moving one since the Fed wants to keep rates at “exceptionally low” rates until unemployment drops below 6.5% into 2014. The annuity rate is still lower than many mainstream dividend-paying investment funds, which could serve … more

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Caught in the Middle, In More Ways Than One

We are almost two months removed from when the United States hit its debt limit in May (again).  In a tiringly familiar ritual, the Treasury Secretary issued a letter to Congress describing the steps it was taking to put off default on U.S. debt. TSP participants know that among the options, “Treasury may…suspend the daily reinvestment of the Treasury securities held by the Government Securities Investment Fund (G Fund) of the Federal Employees’ Retirement System Thrift Savings Plan,” as described … more

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20-Something Feds Act Downright Old

A recent study of TSP participant behavior found the age group allocating one of the largest amounts to the G Fund is…20-somethings.  As a group, 20-somethings had almost 45% of their of their TSP funds allocated to the G Fund. Only 60-somethings and 70-somethings allocated more to the G Fund, at about 50% and 55% respectively.  This is according to a demographic study of TSP participant behavior from 2006 to 2010 (see slide 18). The G Fund may be the least … more

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