Can I Invest in the G Fund?
- The Thrift Savings Plan is a type of retirement plan that is similar to a 401(k) in the private sector. The main difference is that it is available only to federal employees, civil employees and military members. Before you can contribute money to this type of retirement plan, you have to work for one of these agencies for the required amount time. Once you meet the eligibility requirements, you will be automatically enrolled into the Thrift Savings Plan.
- When you participate in the Thrift Savings Plan, you can contribute part of your own money, and the government will also contribute a percentage of your income into the plan. This money can then be invested into various investments and earn returns on a tax-deferred basis. There are several investment funds to choose from with the Thrift Savings Plan. For example, you can put money into the G Fund, the F Fund, the C Fund or the I Fund.
- Many people who participate in the Thrift Savings Plan choose to put money into the G Fund. The G Fund is a mutual fund that invests in government securities. The fortunes of the fund are directly tied to the performance of the federal government and its associated securities. The United States Treasury issues a special security to the Thrift Savings Plan that pays a regular rate of return. Many government employees choose to put money into this fund because of the safety that it provides.
- When you put money into your Thrift Savings Plan, you can choose to allocate the resources into any funds that you want, and you will have the opportunity to put as much of your money as you want into the G Fund. Some people put all of their retirement money into this fund because they want to guarantee that the money will not be lost in riskier investments. You can allocate the money at your discretion once it is put into the plan.
