Ask The Experts: Money Matters

By Mike Miles

G, F and I funds and debt ceiling struggle

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Q. What would happen to the Thrift Savings Plan investments, specifically the G, F and I funds, if the government can’t raise the nation’s debt ceiling before the Oct. 17 deadline for default? Are we looking at another financial meltdown like we had in 2008?

A. The G Fund will hold its value. The other funds are vulnerable to loss in value. So far, however, the stock markets aren’t predicting disaster. They’re in good shape as of today – still near their multiyear highs.

You should accept that predicting future market behavior is a risky thing to do. If your financial success hinges on your ability to correctly time markets, you’re not doing it right. There are better ways to make your investment decisions. I encourage you to find one with better odds of success.

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