Informative Speech: Retirement Savings Plans
TSP
Specific Purpose: To inform my audience about the different funds and possible risk and rewards of the Thrift Savings Plan.
Central idea: The main types of funds that you can invest in are the G, F, C, S, and I funds, and lifecycle funds.
Introduction
I. Many of us have financial worries in the present and neglect to think about how financially stable we will be in the future. National Institute on Retirement Security released a new report on the current state of retirement savings in America. The study confirmed 38 million working-age households (45%) do not own any retirement account assets. 80% of all working people ages 25-64 have less than 1 times their annual income in retirement savings.
II. We as government employs can prevent …show more content…
The safest option is the G fund or Government Securities Investment Fund.
a. The G Fund's objective is to produce a rate of return that is higher than inflation while avoiding exposure to credit (default) risk and market price fluctuations.
b. 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.
c. 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.
d. Consider investing in the G Fund if you would like to have all or a portion of your TSP account completely protected from loss. If you choose to invest in the G Fund, you are placing a higher priority on the stability and preservation of your money than on the opportunity to potentially achieve greater long-term growth in your account through investment in the other TSP funds.
II. Another less risky option is the F fund or Fixed Income Index fund.
a. The point of the F Fund is to match the performance of the Barclays Capital U.S. Aggregate Bond Index, a broad index representing the U.S. bond …show more content…
The C, S, and I Funds track different segments of the overall stock market without overlapping. This is important because the prices of stocks in each market segment don't always move in the same direction.
IV. The S fund or small cap investment fund, also focuses on American companies.
a. The S Fund's investment objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index, a broad market index made up of stocks of U.S. companies not included in the S&P 500 Index.
b. The earnings consist of dividend(profit sharing) income and gains (or losses) in the price of stocks.
c. Your investment in the S Fund is subject to market risk because the Dow Jones U.S. Completion Total Stock Market Index returns will move up and down in response to overall economic conditions.
d. While investment in the S Fund carries risk, it also offers the opportunity to experience gains from equity ownership of small to mid-sized U.S. companies.
V. The I fund or international stock fund focuses on international stocks.
a. The I Fund invests in a stock index fund that fully replicates the Morgan Stanley Capital International EAFE (Europe, Australasia, Far East) Index. The earnings consist of gains (or losses) in the price of stocks, dividend income, and change in the relative value of
Specific Purpose: To inform my audience about the different funds and possible risk and rewards of the Thrift Savings Plan.
Central idea: The main types of funds that you can invest in are the G, F, C, S, and I funds, and lifecycle funds.
Introduction
I. Many of us have financial worries in the present and neglect to think about how financially stable we will be in the future. National Institute on Retirement Security released a new report on the current state of retirement savings in America. The study confirmed 38 million working-age households (45%) do not own any retirement account assets. 80% of all working people ages 25-64 have less than 1 times their annual income in retirement savings.
II. We as government employs can prevent …show more content…
The safest option is the G fund or Government Securities Investment Fund.
a. The G Fund's objective is to produce a rate of return that is higher than inflation while avoiding exposure to credit (default) risk and market price fluctuations.
b. 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.
c. 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.
d. Consider investing in the G Fund if you would like to have all or a portion of your TSP account completely protected from loss. If you choose to invest in the G Fund, you are placing a higher priority on the stability and preservation of your money than on the opportunity to potentially achieve greater long-term growth in your account through investment in the other TSP funds.
II. Another less risky option is the F fund or Fixed Income Index fund.
a. The point of the F Fund is to match the performance of the Barclays Capital U.S. Aggregate Bond Index, a broad index representing the U.S. bond …show more content…
The C, S, and I Funds track different segments of the overall stock market without overlapping. This is important because the prices of stocks in each market segment don't always move in the same direction.
IV. The S fund or small cap investment fund, also focuses on American companies.
a. The S Fund's investment objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index, a broad market index made up of stocks of U.S. companies not included in the S&P 500 Index.
b. The earnings consist of dividend(profit sharing) income and gains (or losses) in the price of stocks.
c. Your investment in the S Fund is subject to market risk because the Dow Jones U.S. Completion Total Stock Market Index returns will move up and down in response to overall economic conditions.
d. While investment in the S Fund carries risk, it also offers the opportunity to experience gains from equity ownership of small to mid-sized U.S. companies.
V. The I fund or international stock fund focuses on international stocks.
a. The I Fund invests in a stock index fund that fully replicates the Morgan Stanley Capital International EAFE (Europe, Australasia, Far East) Index. The earnings consist of gains (or losses) in the price of stocks, dividend income, and change in the relative value of