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 future financial worries now by investing in the thrift savings plan. III. The thrift savings plan has many options to invest funds into varying in risk and personal effort/commitment. (Let’s explore these options)
I. 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.
Bibliography: Harris, Karen K. "The Shriver Brief : Poverty Law Commentary & Insights : Sargent Shriver National Center on Poverty Law : Affordable Housing, Healthcare Reform." New Statistics on the American Retirement Savings Crisis : The Shriver Brief. N.p., 07 Aug. 2013. Web. 26 Apr. 2014.
"G Fund: Government Securities Investment Fund." TSP:. N.p., n.d. Web. 26 Apr. 2014. .
"F Fund: Fixed Income Index Investment Fund." TSP:. N.p., n.d. Web. 26 Apr. 2014. .
"C Fund: Common Stock Index Investment Fund." TSP:. N.p., n.d. Web. 26 Apr. 2014. .
"S Fund: Small Cap Stock Index Investment Fund." TSP:. N.p., n.d. Web. 26 Apr. 2014. .
"I Fund: International Stock Index Investment Fund." TSP:. N.p., n.d. Web. 26 Apr. 2014. .
"Lifecycle Funds." TSP:. N.p., n.d. Web. 26 Apr. 2014. .
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