Investors in the Thrift Savings Plan (TSP) stock funds are understandably discouraged. Investors have been fleeing to the safety of the G fund. When did the C fund last return more than 10% in a month? It has been almost 18 years. But here is good news: The March returns (so far) are very good for all of the stock funds and are now close to setting new records for the biggest monthly returns for these funds.
TSP investors are setting records for putting money into the G fund. Does this mean we have reached a market bottom?
What is the link between the “Family Smoking Prevention and Tobacco Control Act”, and the Thrift Savings Plan? They are part of the same legislative package in the House of Representatives.
Active federal employees save about $820 a year because they are able to pay for health insurance out of pre-tax money. A bill introduced in the House would give the same benefit to federal civilian retirees as well as active duty military personnel and retirees.
The Congressional Budget Office has several proposals to reduce the cost of government. None of these options will necessarily be passed into law but, with an eventual effort to reduce the federal debt, some of the options would save billions and may be tempting–to the disadvantage of federal employees and retirees.
When it comes to investing our money, most people put short-term political views aside. When spending their money, they focus on the future of business and the prospects for future growth. If they are confident, stock prices go up. If they are pessimistic, stock prices go down. TSP stock funds dropped dramatically again in February with one fund, the G fund, the only TSP fund with a positive return for the month and for the year.
How much will your pay raise be in 2010? President Obama has proposed 2% for civilians to bring federal pay and benefit practices “more in line with the private sector.”
Government contracting may change dramatically under the provisions of the appropriations bill that is now being considered by the House. Significant limits on contracting are contained in the House bill and there would, instead, be an emphasis on having more work done by federal employees.
How much of a cost of living adjustment will federal retirees see in 2010? Perhaps there will not be one. That has not happened before but we are in unusual economic times.
You have reason to feel your financial future is at risk. We are in an uncertain economic situation. So what about your future retirement? Should you be putting money into the G fund, the F fund or into stocks? Here is a summary of professional investment prognosticators at a recent event for investors. It is not optimistic but may be helpful to you in planning your financial future.
