The I fund remains well ahead year-to-date, up 21.50 percent, compared with the C fund's 10.76 percent gain. Image: yoshi0511/Shutterstock.com
By: FEDweek StaffAll of the five core TSP funds posted gains in August, led by the small company stock S fund, up 4.08 percent and the international stock I fund by 3.96 percent. The large cap stock C Fund posted a 2.03 percent gain, followed by the F fund’s 1.19 percent and, while the government securities G fund rose 0.37 percent.
The I fund remains well ahead year-to-date, up 21.50 percent, compared with the C fund’s 10.76 percent gain, the S fund’s 8.96 percent, the F fund’s 4.99 and the G’s 2.98.
The August returns for the lifecycle L funds were: Income, 1.12; 2030, 1.97; 2035, 2.14; 2040, 2.29; 2045, 2.42; 2050, 2.55; 2055, 2060, 2065, 2070, 2075, 2.95. They are up from 6.24 to 14.21 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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