Year-to-date, the C fund leads with a 19.5 percent gain. Image: Bigc Studio/Shutterstock.com
By: FEDweek StaffAll TSP funds posted gains in August, led by the international stock I fund, up 3.15 percent, followed by the large company stock C fund, up 2.42 percent.
The other stock-based fund, the small company S fund, gained as well—up 0.25 percent—but that was exceeded by the gains of the bond F fund, up 1.43 percent, and the government securities G fund, up 0.35 percent.
Year-to-date, the C fund leads with a 19.5 percent gain, followed by the I fund, 12.3 percent, and the S fund, 9.99 percent. The F fund is up 3.14 percent and the G fund up 2.97 percent for the year.
The August returns for the lifecycle L funds were: Income, 0.98; 2025, 1.1; 2030, 1.69; 2035, 1.82; 2040, 1.93; 2045, 2.04; 2050, 2.13; 2055, 2060, 2065, 2070, 2.38. They are up from 6.25 to 15.59 percent on the year.
In a repeat of early August however, markets retreated with the Dow dropping 626 points on Tuesday after data pointed to weakness in manufacturing, renewing fears of a slowdown. On August 5th markets globally plunged, partly due to fears of an economic slowdown, and also the unwinding of institutional and fund bets tied to Japanese currency.
Automate Your Savings: If You Don’t See it, You Won’t Miss It
I remember hearing that during the annual Savings Bond drives. Savings Bond drives faded into obscurity with the advent of the FERS retirement system and the Thrift Savings Plan. You might have heard the phrase from your parents as you entered the workforce.
In his 2004 book The Automatic Millionaire, Bach encouraged people to “pay themselves first”, setting aside one hour’s earnings for their own goals (retirement related or otherwise). This advice goes hand in hand with not seeing and not missing savings and investments. How is it possible that I do not see and do not miss the money I’m setting aside? By automating my savings, that’s how. That’s also where the title The Automatic Millionaire comes from. And we have tools at our disposal to automate our savings.
We fund the TSP by payroll deduction. In fact, other than a rollover from another plan, payroll deduction is the only way in which we can put money into the TSP.
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See also,
How Do Age and Years of Service Impact My Federal Retirement
The Best Ages for Federal Employees to Retire
