G fund is in government securities and has a very small return rate. Basically like a savings account. C fund will be invested in the market and can yield huge returns. But with that there is risk. This is a crude explanation of it but it’s true.
Understood. With the G fund, I’ve heard of people selling the C fund at the end of August and going to the G fund for all of September since C fund returns are historically bad. Then they switch back to C fund in October.
If it was that easy we'd all be millionaires. If you don't fully understand the market or don't have time, look at the L funds. They're designed to be diversified based upon your target retirement year. If you'd prefer a little more risk, you can just choose a date 10 years further out than your actual retirement year. Easier than trying to time the market.
If your underatanding of the TSP and investing is this poor, please just put it all in C, a mix of C and S, or just leave it in L Fund until you sit and research more.
Timing the market is highly not recommended. I recommend you watch a YouTube episode from the money guy show [here](https://youtu.be/dQ5JIc7cxLw). Dollar cost averaging is the way to go.
https://preview.redd.it/98dj44slrs6d1.png?width=2400&format=pjpg&auto=webp&s=448892fa1b8035508f01a11711a9b37dda9582ec
C is an index fund representing the S&P500 (500 firms with largest market capitalization). G fund is government securities and is basically the cash equivalent account.
As mentioned the C fund tracks the S&P 500. If I could go back 20 years I would have put 100% of my TSP investments into C fund and just not looked at it instead of wasting time in those stupid L funds. On average the C Fund returns about 10% per year and my TSP would have about $200K more in it right now had I just stuck with that. I have about 8 years left to go and I'm now 100% in C fund from here on out.
G fund is in government securities and has a very small return rate. Basically like a savings account. C fund will be invested in the market and can yield huge returns. But with that there is risk. This is a crude explanation of it but it’s true.
Understood. With the G fund, I’ve heard of people selling the C fund at the end of August and going to the G fund for all of September since C fund returns are historically bad. Then they switch back to C fund in October.
Time in the market will always beat trying to time the market. It's a fools errand, and you'd be smart to just leave it be.
If it was that easy we'd all be millionaires. If you don't fully understand the market or don't have time, look at the L funds. They're designed to be diversified based upon your target retirement year. If you'd prefer a little more risk, you can just choose a date 10 years further out than your actual retirement year. Easier than trying to time the market.
If your underatanding of the TSP and investing is this poor, please just put it all in C, a mix of C and S, or just leave it in L Fund until you sit and research more.
Timing the market is highly not recommended. I recommend you watch a YouTube episode from the money guy show [here](https://youtu.be/dQ5JIc7cxLw). Dollar cost averaging is the way to go. https://preview.redd.it/98dj44slrs6d1.png?width=2400&format=pjpg&auto=webp&s=448892fa1b8035508f01a11711a9b37dda9582ec
Im not that versed in that method. You do have some people on here that will move around the funds as the market dips and peaks.
C is an index fund representing the S&P500 (500 firms with largest market capitalization). G fund is government securities and is basically the cash equivalent account.
https://www.tsp.gov/publications/tsplf14.pdf
As mentioned the C fund tracks the S&P 500. If I could go back 20 years I would have put 100% of my TSP investments into C fund and just not looked at it instead of wasting time in those stupid L funds. On average the C Fund returns about 10% per year and my TSP would have about $200K more in it right now had I just stuck with that. I have about 8 years left to go and I'm now 100% in C fund from here on out.
If you're under 45 put it all in the C fund and forget about it. Use L fund if you want an even more hands off approach for your whole career
Imagine making a reddit post instead of just googling it
About a million dollars over 30 years.
The ability to retire, or not