Good Morning
Short post, I will provide a more in-depth explanation in a week or two. Bottom Line, I am moving my TSP balance to 100% G-Fund. The markets are NOT responding well to the tariff policies being pushed forward, and while the intent of them is correct (my opinion), the market has other ideas. Some naysayers exist who are lambasting these policies, unfortunately we are seeing this reflected in the financial markets and retirement accounts. I personally am not willing to roll the dice inside the casino called “Geopolitical global trade wars” as a retired guy.
Do what is correct for you, this is not investment advice. My retired status, personal risk tolerance, higher priority on the stability and preservation of my money has resulted in this decision. For further information on the G-Fund may be a tool for you, please see the official guidance at https://www.tsp.gov/funds-individual/g-fund/
Being in the G-Fund is not “leaving the TSP.” The TSP is a gun vault, open the vault, and different shelves exist inside. I am moving my stuff to the “G-Fund shelf.”
This is known as “reallocating” (indeed, the TSP site itself uses the word “Reallocation” of funds when changing funds), and there is nothing evil or “wrong” about reallocation. Some links about this concept are below:
Click to access PAS-model-rebalancing.pdf
https://www.investopedia.com/how-to-rebalance-your-portfolio-7973806
https://www.forbes.com/sites/carriemccabe/2025/02/27/tough-markets-smart-moves-how-investors-are-reallocating-capital/
https://www.aaii.com/journal/article/why-we-dont-rebalance
Thank you for reading
-Bill Pritchard
