Kiplinger

Federal Workers: Are You Playing It Too Safe with Your TSP?

A lot of people like to play it safe.

That's one explanation for why the conservative G Fund remains the most popular fund among federal employees invested in the government's Thrift Savings Plan (TSP).

Because the fund is invested in short-term U.S. Treasury securities, specially issued to the TSP, principal and interest payments are guaranteed by the U.S. government -- which makes it feel like an especially comfortable, secure investment. And until 2015, it was the default for employees who hadn't chosen an asset allocation when they signed up for the TSP.

You can almost hear a sigh of relief coming from risk-averse federal employees around the country when they read the word "guaranteed." And who can blame them? Market volatility can be a

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