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Author: TRGarner Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 37590  
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 5:47 AM
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YodaCO,

You are giving out GREAT NEWS, whats your secret? :)

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First, Thanks, I've forwarded this email (yours actually) to work for print out and mandatory reading for the troops. THIS IS GREAT NEWS!

Second, The fun part, what would someone SUGGEST as a good plan for the different plans? Any suggestions?

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Taken from Thrift Savings Plan: What is TSP?

A choice of investments in three funds:

Government Securities Investment (G) Fund
Common Stock Index Investment (C) Fund
Fixed Income Index Investment (F) Fund

What is the G Fund?

The G Fund consists exclusively of investments in short-term nonmarketable U.S. Treasury securities specially issued to the TSP. Currently, maturities range from 1 day (on business days) to 4 days (over holiday weekends). G Fund investments earn interest at a rate that is equal, by law, to the average of market rates of return on U.S. Treasury marketable securities that are outstanding with 4 or more years to maturity.

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What is the C Fund?

The C Fund is invested primarily in the Barclays Equity Index Fund, a commingled stock index fund that tracks the Standard & Poor's 500 (S&P 500) stock index. A commingled fund is a fund in which the assets of many plans are combined and invested together.

**** Thus, the Equity Index Fund uses a "passive" investment strategy of duplicating the performance of the S&P 500 index... ****

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The F Fund is invested primarily in the Barclays U.S. Debt Index Fund, a commingled bond index fund designed to track as closely as possible the Lehman Brothers U.S. Aggregate (LBA) index. The LBA represents U.S. Government, corporate, and mortgage-backed securities sectors of the fixed-income securities market. Fixed-income securities represent obligations of issuers (the borrowers) to repay the amount borrowed (the principal) to holders of the securities at maturity. These securities, which include bonds, notes, and debentures, usually pay interest semiannually until maturity.


If anything, I'm unsure of the choices (thus far), to me, it looks like the F Fund is the best choice, however, looking over the different rate of returns, one has to wonder.

Any suggestions?

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