Despite the July loss, the I fund remains well ahead year-to-date, up 16.89 percent. Image: leungchopan/Shutterstock.com
By: FEDweek StaffThree of the five core TSP funds posted gains in July, led by the small company stock S fund, up 2.53 percent and the large company stock C fund, up 2.24 percent, while the government securities G fund rose 0.37 percent.
The international stock I fund however fell 1.52 percent and the bond F fund fell 0.25 percent.
Despite the July loss, the I fund remains well ahead year-to-date, up 16.89 percent, compared with the C fund’s 8.56 percent, the S fund’s 4.69 percent, the F fund’s 3.76 percent and the G fund’s 2.6 percent.
The July returns for the lifecycle L funds were: Income, 0.5; 2030, 0.69; 2035, 0.72; 2040, 0.74; 2045, 0.78; 2050, 0.81; 2055, 2060, 2065, 2070, 2075, 0.95. They are up from 5.07 to 10.94 percent year-to-date.
The Risk of Staying Fully Aggressive – During your working years, the C, S, and I funds (which track large-cap U.S. stocks, small/mid-cap U.S. stocks, and international stocks, respectively) may have delivered strong returns—especially when markets were thriving. In fact, since their inception, these funds have had impressive average annual returns:
● C Fund: ~10.88%
● S Fund: ~8.87%
● I Fund: ~5.09%
These kinds of returns are great if you have time. But what if the market crashes right when you need to start withdrawing funds for retirement income? Should your TSP investments change at retirement?
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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
