The C fund tracks the performance of the S&P 500, which includes stocks of 500 large to medium-sized U.S. companies and has higher risk/reward. Image: Gorodenkoff/Shutterstock.com
By: FEDweek StaffAll TSP funds except the bond fund posted gains for the year’s first half, led by the large company stock C fund, up 15.28 percent after a 3.58 percent gain in June.
The international stock I fund dropped 1.62 percent last month and the small company stock S fund fell 0.1 percent, but still are up 5.85 and 3.28 percent, respectively on the year.
The bond F fund gained 0.94 percent in June but remains down for the year at -0.63 percent, while the government securities G fund rose 0.31 percent for a 2.28 percent year-to-date gain.
The lifecycle L funds are up from 4.13 to 10.19 percent on the year. The returns for June were: Income, 0.65; 2025, 0.71; 2030, 0.95; 2035, 1; 2040, 1.05; 2045, 1.1; 2050, 1.14; 2055, 2060, 2065, 1.25.
The TSP said that a new 2070 target date lifecycle L fund will launch July 26, and will be the default investment fund for new enrollees born after 2004 – most of them military. Next year the 2025 fund will be merged with the Income fund when their investment profiles match, and a 2075 fund will be launched.
While the L Funds are the default option for most enrollees, the target date of your particular L fund might come well before you begin to draw it down, so bear that in mind when you think allocations. That could be much later in retirement, arguing for a later target date fund with more equities exposure for longer and one reason why a fund hitting its target date in your early 60s might not be for everyone.
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See also,
How Do Age and Years of Service Impact My Federal Retirement
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