Equities rallied in February nothing new index highs. Image: zignal_88/Shutterstock.com
By: FEDweek StaffAfter an up and down start to the year, the main TSP stock funds surged in February reflecting new records for stock indices around the globe, with the stock C Fund (large cap) posting gains of 5.34 percent, the S Fund (small cap) notching a 6.03 percent gain and the international I Fund gaining 2.74 percent.
For the last 12 months, those funds are up 18.93, 30.41 and 15.19 percent, respectively. The government securities G fund gained as always in February, up 0.33 percent, for a 4.28 percent 12-month gain.
The G Fund rose 0.33 percent after a similar gain in January, with only the bond F fund dropping 1.41 percent as yields appear to remain elevated for longer than may have been anticipated (bond prices, and the F fund price go up when yields go down).
February returns for lifecycle L funds were: Income, 1.29; 2025, 2.96; 2030, 2.74; 2035, 2.96; 2040, 3.20; 2045, 3.41; 2050, 3.62; and the mostly stock 2055, 2060 and 2065 funds all popping 4.48 percent.
As of year-end 2023 just under 117,000 TSP investors had $1 million or more in their accounts, an increase of some 40,000 during the year, another impact of the rebound in stock-based investment funds during the year making up for their losses of 2022.
The figure — representing about 2 percent of account holders — tops the previous high in the quarterly reporting of about 113,000 at year-end 2021; the year-end figure for 2022 had been about 77,000.
The average FERS balance is about $176,000 and the average CSRS balance is about $198,000.
As reported earlier, the TSP now has more than 7 million account holders for the first time in its history, and also set a record for the amount on investment at $849 billion in January, data released at the February meeting of the TSP governing board show.
Of the 7,007,504 accounts, just above 4 million are held by current, retired or otherwise separated FERS employees; about 250,000 of those under CSRS; nearly 1.4 million by current or former military personnel under the “blended retirement system” that includes automatic enrollment in the TSP; and nearly 1.3 million military accounts under the prior military retirement system. (Another ~40,000 inherited accounts remain in place.)
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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
