Two positive economic reports – stronger-than-expected growth in employment and lower-than-expected inflation – prompted speculation about the pace of further monetary easing by the Federal Reserve. Image: orhan akkurt/Shutterstock.com
All TSP funds posted gains in January, led by the small company stock S fund, up 4.99 percent, followed by the international stock I fund, up 3.68 percent, and the large company stock C fund, up 2.78 percent.
The bond F fund gained 0.51 percent and the government securities G fund 0.39 percent.
Monthly gains for the lifecycle L funds were: Income, 1.2; 2025, 1.28; 2030, 2.21; 2035, 2.38; 2040, 2.56; 2045, 2.71; 2050, 2.86; 2055, 2060, 2065, 2070, 3.36.
For the first time, the TSP included a “market commentary” with the release of the monthly figures. It reads:
“Two positive economic reports – stronger-than-expected growth in employment and lower-than-expected inflation – prompted speculation about the pace of further monetary easing by the Federal Reserve. The central bank kept its target range for short-term interest rates unchanged, citing a solid labor market and somewhat elevated inflation. The C and S Funds posted gains. The I Fund also finished higher, thanks in part to a modestly weaker U.S. dollar. The F Fund rose as longer-term interest rates edged lower. All L Funds posted gains.”
Doubling Your TSP (C Fund vs G Fund)
Federal employees enjoy the benefit of having a retirement account called the TSP (Thrift Savings Plan). The TSP was created in 1987, starting with the G fund. Federal employees now enjoy more options like the F, C, S, I, and ten different L funds. Each fund has unique characteristics that give federal employees the ability to meet their retirement goals.
The C and G funds are very popular among federal employees. They are often described as polar opposites. Let’s take a look at their returns over time.
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See also,
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The Best Ages for Federal Employees to Retire
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