Fedweek

Starting in October two new funds also will be available — an international (I) fund and a small-capitalization U.S. stock (S) fund. Investors can prepare by watching the performance of the indexes those funds will track – the Barclays EAFE Index and the Wilshire 4500, respectively. Those funds historically have been even more volatile than the most variable of the TSP’s current three funds, the common stock (C) fund. However, they will give investors the opportunity to further diversify their TSP portfolios, assuming they are willing to bear the investment risk. Also, investors planning to apply for a loan or withdrawal in the next few months should be aware that the processing of such requests might be delayed in September during the transition to the new system. (See Publisher’s Note on TSP at the bottom)