In tumultuous times, investors have tumultuous thoughts. Some federal employees invested for retirement in the Thrift Savings Plan's ultra-safe G Fund became unnerved recently. They worried that with the government on the hook for billions of dollars in financial rescue funds, it might raid the G Fund to help pay for it.

TSP Executive Director Gregory T. Long had to go online to calm nerves. He posted a letter on the program's bland but informative Web site, http://www.tsp.gov, to reassure investors that this will not happen.

"The answer is no," Long wrote. "By law, the assets in the TSP are held in trust for each individual participant. So, you don't have to worry about anyone 'tapping' your retirement investments for another purpose."

The episode highlights the high anxiety that afflicts government workers, just like everyone else saving for retirement. The TSP is similar to 401(k) programs offered by the private sector. Like other mutual funds, the three stock-oriented TSP funds slumped last month, posting losses between 9 and 12 percent, with further drops so far this month. The year-to-date figures are worse, with loses ranging from 16 percent to 28 percent for the three funds.

As bad as that is, it's better than the Standard & Poor's 500-stock index, which is down 32.9 percent so far this year.

Administrators have a message for the nearly 4 million people who save for retirement in the TSP: Don't let this financial crisis freak you out. The TSP is distributing a poster that shows a convoy of 18-wheelers snaking through very rocky and hilly territory.

But the road itself is smooth and relatively straight.

"Stay in it for the long haul," the caption advises.

For the most part, investors have not let their anxiety get the best of them, the program's officials reported at a TSP board meeting yesterday.

"Our participants have done well. They have weathered the volatility in the market by not bailing out," said Renée Wilder, director of research and strategic planning.

Many have changed direction, however, and are seeking safer investments. In the first 15 days of October, there were 181,000 transfers of money from one fund to another. That's more than all of the transfers for September, when the crisis began.

The more than 166,000 transfers last month shifted a net $3.5 billion into the G fund. Most of that money came from the large-company stock fund and the international stock fund.

The transfers amount to only a small slice of the more than $218 billion invested in TSP funds at the end of September.

"We have obviously had a very tumultuous market. The month of October in particular has been very difficult," Long said in a telephone interview after the meeting. "We have had expressions of concern by our participants and some anxiety."

The TSP has registered the increased anxiety in the increased activity on its customer service line and Web site. The number of phone calls has been higher than average almost every day in October and was double the average on Oct. 10. Some of those calls came from "people who wanted their hands held," Long said. His letter reminded that the program is a long-term retirement plan and said this is "a time for prudence, not panic."

During anxious times, "there's a general notion that's called in the investment business 'flight to quality,' " he added. "People are flying to quality, leaving investments which have some risk associated with them and trying to move to Treasury bills or gold or anything that is seen as safe."

The G Fund is very safe. It never declines in value. In September, it was up 0.31 percent, almost 3 percent for the year. That's not much, but it looks pretty good compared with the other funds.

TSP officials are quick to note that participants can move money to the G Fund at any time, without the restrictions imposed on shifting to other funds.

Long urges prudence, and that includes reassessing your investment portfolio. For some people, that could include a look at TSP's L Fund, which Long considers a good bet in any market. It diversifies a participant's investment among all the program's funds and tailors the investment strategy to timelines consistent with when an investor will need the money.

For example, the L Income Fund, for those whose older years makes financial risk less attractive, is 74 percent in government securities, while the L2040 Fund, for youngsters, has only 8 percent in that category and 82 percent spread across stock funds.

"People who are retiring or going to start drawing their money out in 2010 have had some (L Fund) loses, but quite frankly, they've been relatively minor," Long said.

And for those who still have many years to go, the drop in the stock market represents a good time to buy.

"For people who are 20 years to retirement," Long said, "this should be seen as an opportunity."