With over $845 billion across more than 7 million participants at the end of 2023—including 116,000 TSP millionaires—the US Government’s Federal Thrift Savings Plan stands as the world’s largest retirement savings plan. This series of articles answers some of the questions we’ve most frequently received from TSP investors. Have a question about TSP investments? Send it to our TSP feedback survey.
Question: What is the TSP G Fund? How should I use it, and should I be using the G Fund as part of my bond asset allocation? Something else?
Answer: We’ve written a few times about the marvel that is the Federal Thrift Savings Plan’s G Fund. As my colleague John Rekenthaler put it, “If anything resembles the G Fund, I have yet to encounter it.” The G Fund, also known as the Government Securities Investment Fund, pays investors the higher yield that comes from longer-term US government bonds, but it does so without the risk…
