Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Building the Hybrid Cloud
- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
- Federal Executive Forum
- Federal Tech Talk
- The Future of Government Data Centers
- The Future of IT: How CIOs Can Enable the Service-Oriented Enterprise
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Moving to the Cloud. What's the best approach for me
- Navigating Tough Choices in Government Cloud Computing
- The New Generation of Database
- Satellite Communications: Acquiring SATCOM in Tight Times
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Value of Health IT
- Air Traffic Management Transformation Report
- Cloud First Report
- General Dynamics IT Enterprise Center
- Gov Cloud Minute
- Government in Technology Series
- Homeland Security Cybersecurity Market Report
- National Cybersecurity Awareness Month
- Technology Insights
- The Cyber Security Report
- The Next Generation Cyber Security Experts
Shows & Panels
TSP returns: Holding steady vs. moving around
Monday - 8/22/2011, 3:53pm EDT
Federal News Radio
People who stuck with their investments through the 2008-09 crash had a bigger pay-off than those who made changes.
Reuters reports that Fidelity Investments analyzed 7.1 million 401(k) accounts and found those who changed allocations and pulled out of stocks only saw an average increase of 2 percent. Those who exited stocks and returned saw an average of 25 percent. Meanwhile, investors who didn't move at all saw an increase of 50 percent.
The lesson to hold steady could hold true during the most recent market slides after the S&P downgraded U.S. credit.
"An awful lot of people have gotten it, they understand it and they built up the intestinal fortitude to stay during these rocky days," said Tom Trabucco, director of external affairs for the Federal Retirement Thrift Investment Board, which oversees the Thrift Savings Plan.
"If you look at it from a larger perspective - and hopefully people over time can get to that point - you see the wisdom of having a long-term plan and staying with it for the long haul," Trabucco said.
Debt limit and the G Fund
When the government reached its $14.3 trillion borrowing limit in May, the Treasury Department stopped issuing securities to the Thrift Savings Plan's G Fund so the government could continue borrowing.
But your G Fund investments were and are still safe, Trabucco said.
When the government reaches the debt limit, the Treasury Secretary - by law - immediately issues securities that "replicate what would've been there if issued in an uninterrupted period," Trabbuco said.
When the debt limit was raised, the Treasury paid the securities' net interest that would have accrued over that same period. Treasury must also file a report within 30 days of the debt being raised. That report will be posted on the TSP website once the board receives it, Trabucco said.