You beat me to it. Was about to post that for the retiree with a set and forget it approach, the never-decreasing G Fund can provide the dry powder to rebalance when stocks take a licking. (I can only imagine that in 2022Agree.What you don't want to do is unnecessarily move funds between the TSP and an IRA because you'll be out of the market during the transfer process (usually done by a check mailed to the TSP or from the TSP). "The check's in the mail."
I also view G as an important component of the TSP L Income fund (or other L fund). I presume that you would want to have your G be available to replenish the stock portion of the portfolio when it's down. To me the daily rebalancing is one of the perks of the L funds. Some time ago I read a study on rebalancing that concluded that daily rebalancing bested monthly, quarterly, and annual rebalancing. Of course, most cannot rebalance every day and many feel it wouldn't matter. I wish I could locate that study. Here's one that says daily "pulled out ahead with above-average returns over most time periods":
https://www.morningstar.com/markets/why ... s-pays-off
the L income other L funds took advantage of some of the stock "sale" prices.) Not sure, but perhaps for the retiree that would provide better long-term results than separating out the G fund during inverted yield curved times to invest in a money market fund?
In any event, for the hands off investor who simply wants to take money out of the retirement account and live their lives, the G Fund plays an important role in the L funds in years like 2022.
Statistics: Posted by AlwaysLearningMore — Sat Jun 08, 2024 5:25 pm