The returns in the underlying funds also resulted in losses for each of the lifecycle L funds. Image: Sergei ua/Shutterstock.com
By: FEDweek StaffAll TSP funds posted losses in October except the small company stock S fund, up 0.59 percent and the government securities G fund, up 0.33 percent.
The international stock I fund fell 5.17 percent, the bond F fund fell 2.48 percent, and the large company stock C fund fell 0.91 percent. However, those five core TSP funds remain up for the year by 1.35, 3.65, 6.48, 1.93 and 20.93 percent, respectively.
The returns in the underlying funds also resulted in losses for each of the lifecycle L funds: Income, -0.5; 2025, -0.61; 2030, -1.36; 2035, -1.54; 2040, -1.7; 2045, -1.85; 2050, -1.95; 2055-2065, -2.21; 2070, -2.22. Those funds remain up for the year from between 7.31 and 14.82 percent.
G Fund Risks
The main “risk” the G Fund carries is missing out on far greater returns possible in the other funds, namely the stock funds. And over a career that could wind up being the difference of hundreds of thousands for those maxed out and getting the government’s free-money, full 5% matching contribution. “The April 2024 statistics had approximately 117,000 TSP Millionaires for 6.9 active TSP plan participants. Let’s look at the role of fear and procrastination in keeping that club from being even bigger,” writes Abe Grungold, who considers that role after shifting to the G Fund in October, then calculating the gains he missed out on here: There Could be More TSP Millionaires but for These Two Things.
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See also,
How to Handle Taxes Owed on TSP Roth Conversions? Use a Ladder
The Best Ages for Federal Employees to Retire
Best States to Retire for Federal Retirees: 2025
