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With inflation running at 8.3% year-to-year many federal-military Thrift Savings Plan investors are looking for a safer haven both for their current account balance and future purchases.

After a record long run, the stock market has been acting funny. A European war, worldwide pandemic and broken supply chain will do that. Both to stock markets and our mental wellness.

The price-at-the-pump, which the media and politicians love to track, has never been higher. And an 80-1 odds late starter won the Kentucky Derby. Go figure!

Each time there is an economic bump in the road, and this one is more like a sink hole, some people panic. And feel they need to do something. Anything, but something. And sometimes they are correct. Which is where the super-safe, never-has-a-bad-day G fund comes in. Of all the options in the TSP, it is the only one that doesn’t have a government guarantee that it will not lose money. While stock indexed funds like the C, S and I options have by far the best track record, they can and do tank — and currently have. So in that sense the G fund looks good to many with its recently increased 3% guaranteed return. The highest in decades. It fits the definition of a safe haven.

Many financial planners say that depends on what the definition of safe is. If it’s not losing money, bingo! But if it is also not keeping pace with inflation that also means that overtime your nest egg will shrink in value. A 3% return, over time, isn’t much comfort if your available funds shrink in value. Federal CSRS retirees get full inflation adjustments each January, like Social Security. But for FERS retirees, which includes most current workers, there is a diet COLA feature. Over times of high (3% or more) inflation that diet offset can reduce the buying power of retirees dramatically. So I asked Arthur Stein, a well-known Washington area financial planner for his thoughts on the G-fund. Most of his clients are active or retired feds. Several are TSP millionaires. And he’s a frequent guest on FNNs Your Turn radio show on Wednesdays. Here’s what he said:

There are two advantages to the G Fund: Zero volatility and all holdings are guaranteed by the government.

However, G (and F) Fund investors need to recognize that, historically, long-term investments in the G and F Funds lost purchasing power. G Fund annual returns have gradually declined since it was introduced in April of 1987. In 2021, the return was 1.4%, 84% lower than in 1988. The cost of living (inflation) more than doubled over this period. Follow link to read more: TSP’s G-fund: Nag or derby winner? | Federal News Network

May is a month to celebrate the older Americans in our country and honor their lives and the accomplishments they still have ahead of them.

Older Americans Month was established in 1963 by President John F. Kennedy to bring awareness to the types of programs and support older Americans need to succeed. The Administration of Community Living sets a theme for Older Americans Month every year. This year’s theme is “Age My Way.” Community support, participation, and accessibility are essential for people of all ages, especially for older Americans.

If you identify as an older American, we have some tips to help you take care of your mind, body, and finances:

• Stay Active: Physical activity is important for people of all ages, but it’s vital for older Americans. If you don’t have complete mobility, you     may still want to add some gentle physical activity to your routine.

• Grow Your Community: Socialization helps keep your mind sharp as you age but making new friends can seem daunting. If you have a passion, it’s likely that someone else shares that passion, too.

• Refresh Your Estate Strategy: As you age and life continues to change, it’s a good idea to revisit your estate strategy to make certain it still reflects your goals. Now’s a great time to have those conversations with your family members to make sure everyone knows what your wishes are.