Only I Fund, G Fund and the L Income fund are in positive territory for the last 12 months. Image: leungchopan/Shutterstock.com
By: FEDweek StaffThe three stock-oriented TSP funds posted mixed returns in March, with the large company stock C fund up 3.67 percent and the international stock I fund up 3.11 percent but the small company stock S fund down 2.9 percent.
All three funds remain positive year-to-date, up 7.49, 8.63 and 5.85 percent, respectively. The I fund now is in positive territory over the last 12 months with a 0.28 percent gain, while the S fund remains down by 14 percent and the C fund is down by 7.76. percent.
The bond F fund gained 2.44 percent in March and is up by 3.14 percent year to date although still down, by 4.56 percent, over the last 12 months. The never-losing government securities G fund gained 0.35 percent on the month, for a 0.97 percent gain year to date and a 3.52 percent gain over the last 12 months.
The March returns for the lifecycle L funds were: Income, 1.05; 2025, 1.38; 2030, 1.87; 2035, 2.01; 2040, 2.14; 2045, 2.24; 2050, 2.34; 2055, 2.54; 2060, 2065, 2.55. They are up from 2.76 to 7.69 percent year to date although only the Income fund is in positive territory for the last 12 months, at 1.31 percent. Losses for the others range from -0.73 to -5.69 percent.
TSP Investment Choices
When investing in the TSP, be sure to make sure you balance both risk and reward. You also should be sure to take into account the risk and reward potential of any other investments you have.
The TSP directly offers the following funds:
-Government Securities Investment Fund (G Fund), special Treasury issues with an average maturity date of about 14 years;
-Common Stock Index Fund (C Fund), which tracks the Standard & Poor’s 500 index of large U.S. stocks;
-Fixed Income Index Investment Fund (F Fund), a combination of corporate and government bonds;
-Small Capitalization Index Investment Fund (S Fund) tracking the Wilshire 4500;
-International Stock Index Investment Fund (I Fund), tracking the Barclays EAFE index; and
-Lifecycle Funds (L Funds), in which investors pick from one of the available target withdrawal dates (2025-2065 in five-year increments) or an “income fund” for those already withdrawing their accounts or close to that point.
Mutual Fund Window—The TSP in 2022 began offering an investment “window” through which account holders can invest part of their money in outside mutual funds. There are a number of restrictions, however, including that such investments must be made by transferring money already in an existing TSP account; they cannot be made through ongoing payroll withholding. Also, there is a minimum $10,000 initial outside investment; a ban on making new outside investments that would bring the share of TSP’s own funds in the total account to less than 75 percent; and annual and per-transaction fees.
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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
