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Update Feb 4

February 5th, 2012 at 01:24 am

Went to the accountants today. I didn't bring one of my 1099s and W2s, but everything else is done and accounted for. I am hoping I will be able to contribute a bit to my ROTH IRA.

I got my log in info for my TSP, and found out the deduction I asked for hadn't gone through. I have the signed paperwork so I don't know why, but I'll add it to my things to do at HR next week. I think I might want to up it to 10% instead of 5. This is a percentage from 1/2 my income, so will end up being 5% of my total income. I'm not that crazy about the fund choices, right now I have everything in an Government securities fund which is making like 4%. There are a couple of bond index and other index funds I might like too.

4 Responses to “Update Feb 4”

  1. Amber Says:

    Good for you, on upping that % amount

  2. snafu Says:

    I'm not familiar with your government securities fund, do you only hold bond or interest instruments? Do you hold any equities [stock]? The better, low MER funds have made significant gains in the past two years.

    There is considerable risk in bonds in a low interest rate environment as inflation can significantly lower purchasing power. We've all seen increases at the gas pumps and grocery store.

  3. rob62521 Says:

    You are on the ball!

  4. PurpleLight Says:

    Thanks for the comments! Here is info about the G fund. All my other pension funds are in stocks or mutual funds, so I may keep some monies in here just for 'balance'. I will also be investing in the index funds they have - they offer 4 - S&P, Dow, Barclays Capital U.S. Aggregate Bond, and Morgan Stanley Capital International EAFE. There are also a few 'lifestyle' funds that are a combination of these funds and geared towards your age group (and if you're already retired, etc). Administration fees for all the funds is 0.025%. I usually do S&P index accounts but I might try some of the other ones too. I'll update when I decide (and when I get my form filled in to up my contribution).

    Fund Objective

    The G Fund's investment objective is to produce a rate of return that is higher than inflation while avoiding exposure to credit (default) risk and market price fluctuations.
    Investment Strategy

    The G Fund invests exclusively in a nonmarketable short-term U.S. Treasury security that is specially issued to the TSP. The earnings consist entirely of interest income on the security.
    Risks

    The G Fund is subject to inflation risk, or the possibility that your G Fund investment will not grow enough to offset the reduction in purchasing power that results from inflation.
    Rewards

    The payment of G Fund principal and interest is guaranteed by the U.S. Government. This means that the U.S. Government will always make the required payments. In other words, your G Fund investment is not subject to credit (default) risk.

    The G Fund interest rate calculation is based on the weighted average yield of all outstanding Treasury notes and bonds with 4 or more years to maturity. As a result, participants who invest in the G Fund are rewarded with a long-term rate on what is essentially a short-term security. Generally, long-term interest rates are higher than short-term rates.

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