As Safe as It Gets
Fearful of what an Asian meltdown, the president's domestic problems or some other crisis may do to your 401(k) retirement fund?</br></br>Federal workers investing in the thrift savings plan can always retreat to one of the safest, most exclusive investment options: the G-fund, guaranteed by Uncle Sam and not available to other investors.</br></br>If this $25.2 billion federal puppy goes belly up, all of us (feds and nonfeds alike) will be battling at the nearest city dump for food and clothing.</br></br>No matter what the stock or bond markets do, the G-fund never has a bad day. Its guaranteed rate of return is set monthly by the Treasury Department. So far it has outpaced inflation (the goal of long-term investing), although it has not done as well as the higher-risk C-fund (stock index).</br></br>Money in the G-fund will be invested at 5.75 percent this month. Last month, the rate was 6.00 percent. In November and December, it was 6.125 percent.