Making money on investment dollars seems harder than ever
these days. Domestic savings account rates of return are near zero in some
cases. Several European countries have even offered government securities that
have a rate of return below zero percent. That means investors are actually
paying for those governments to take their money.
While we aren’t quite near that point in the U.S., there is
one bright spot that has shown great resiliency in a world of economic recessions
and high unemployment. That bright spot is the Thrift Savings Plan.
As of August 16, 2012, year to date rates of return on the
TSP are:
G fund: 0.91 percent
F fund: 3.83 percent
C fund: 11.12 percent
S fund: 8.53 percent
I fund: 3.83 percent
What these figures show us is that no matter which
investment vehicle we chose this year, all have made a return that exceed what
would have been received by stuffing cash into a mattress. Additionally, it
shows that one of the hottest markets to invest in worldwide is the United
States. The C fund, consisting of 500 of the largest companies in the U.S. , has greatly outperformed the Europe, Australasia
and Far East index (I fund).
Where do you think the best investment opportunities will be
in the future?
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