The average TSP account grew by about $14,000 in 2020 for both FERS and CSRS investors while the program total crossed the $700 billion mark for the first time.
The average FERS account stood at $164,399 at year-end 2020, up from $151,116 a year earlier, while the average CSRS account rose to $175,031 from $161,101, figures from the monthly TSP board meeting show.
Overall asset allocations were unchanged, ending the year with about 30 percent in the government securities G fund, 29 percent in the large company stock C fund, 11 percent in the small company S fund, 4 percent each in the bond F fund and the international stock I fund and 22 percent collectively in the lifecycle L funds.
However, a significant swing had occurred early in the year as some investors moved money into the safety of the G fund as stock markets fell sharply as the pandemic’s first effects on the economy were felt; the G fund share rose to almost 40 percent at the end of March. Afterward the percentages started changing back as stocks recovered and some investors moved money back out of the G fund.
The total on investment at year-end was $709.6 billion, up from $632.6 billion over the year, and the total number of accounts including active and retired military personnel was just below 6.2 million, up by more than 300,000.
Markets Touch New All Time Highs: Short Bets Squeezed Out
A Reddit subgroup with 2 million members has performed coordinated attacks on individual stocks by buying call options en masse, nearly driving a major hedge fund into bankruptcy. There is a lot of unusual market activity occurring and equity valuations on average are higher than any time since the peak of the dotcom bubble.
Market Exuberance Hits a Peak
There are various threads on social media where young investors are plowing stimulus checks into call options or shares of highly-valued stocks. With little else to do during lockdowns, trading volume among retail investors is at record highs over the past year.