TSP funds earn modest gains in 2007
The government securities (G) fund, which is the most reliable, posted the greatest gains last month out of the five basic investment options, rising 0.41 percent. But the fund's 4.87 percent 12-month return remained the lowest in the TSP.
Fixed-income bonds represented in the plan's F Fund earned 0.25 last month. The fund came in second place out of the five basic options for yearlong growth, rising 7.09 percent.
The S Fund, which invests in small- and mid-sized companies by tracking the Dow Jones Wilshire 4500 Index, fell 0.40 percent. The fund made modest gains in 2007, however, coming in at 5.49 percent.
The C Fund, composed of common stocks on the Standard & Poor's 500 Index of the largest domestic companies, experienced losses of 0.66 percent last month. But the fund's 12-month gains were 5.54 percent.
The international investments represented in the I Fund dipped the most last month, falling 2.25 percent. But the fund's 11.43 percent 12-month return remained by far the highest in the plan.
The TSP also has life-cycle options, a blend of the five basic funds that automatically grows more conservative as investors near retirement.
L 2040, intended for employees with a target retirement date around 2040, dropped 0.82 percent; L 2030 fell 0.63 percent; L 2020 lost 0.54 percent; and L 2010 went down 0.13 percent. The L Income Fund, designed for employees with planned retirements in the very near future, experienced gains of 0.07 percent for the month.
All the L funds posted gains for the year. The L 2040 Fund continued to show the most long-term growth, coming in at 7.36 percent for 2007. L 2030 grew 7.14 percent, L 2020 gained 6.87 percent, L 2010 earned 6.40 percent and L Income made 5.56 percent.
COMMENTS
- Danny Green, is that "First Command" the company once known as USPA & IRA? If so, they were sued by the Federal Government for preditory marketing tactics on military personnel and fined excessively for misrepresentation of their costs and returns. The fine the government received was used to establish an educational program now being taught to government civilians and military alike. Perhaps they've reformed. Perhaps they are now benevolent; but that was far from the the case when I was contacted by them back in 1980. They had a very good patter, SKY HIGH fees, little or no training in fiscal management; just a party line and a tendency to hire retired military to do their sharp shooting for them. Please research before contacts. Tip off Posted January 31, 2008 10:00 AM
- Stan, A company called First Command works with Federal Employees and knows about TSP and other benefits. Do a Google search and you will find them. Good luck Danny Green Posted January 24, 2008 1:01 PM
- I would also double check with TSP as they might mess up your allocations or payroll/national finance center might not properly place your deductions into TSP. I always check and recently noticied that they somehow forgot to allocate one month worth of deductions into my TSP. T Posted January 22, 2008 2:05 PM
