The Value of the F Fund in Your Retirement Planning

The F fund in the Thrift Savings Plan (TSP) is sometimes the Rodney Dangerfield of the TSP funds–It doesn’t get any respect. The G fund is the safe haven; the I fund is used by market timers to try and juice up their returns, the S fund is good for fast growth as we are coming out of a recession and the C fund is the old stock market standby that most people think of when they want to put some of their retirement funds into stocks. But what is the F fund good for?

Exposing Long-Term TSP Investors to Risks They Did Not Anticipate

A recent notice in the Federal Register is the latest step by the Federal Retirement Thrift Investment Board to clamp down on frequent trading in TSP funds. The notice makes the argument that the restrictions are necessary to protect the interests of the majority of TSP investors whose financial investments are being put at risk by the actions of those trying to time the market and forcing all TSP participants to accept additional financial risk they did not anticipate. A press release from a group opposed to the changes states that the cost of trading for each TSP shareholder has declined despite the market timing activities of some TSP participants.

Investing for the Long Term

Some readers are checking their TSP portfolio balance and they get upset. That is understandable as all of us prefer to see our investments go up. Before taking immediate action, take a deep breath and see how your investments have done over the past several years.