TSP portfolios end 2023 on a high note

The federal government’s 401(k)-style retirement savings program finished 2023 with a bang, as each of its portfolios increased in value last month and some funds posted more than 20% gains for the year.

The small- and mid-size businesses of the Thrift Savings Plan’s S Fund had the best performance in December, growing by 10.45%. Over the course of 2023, the S Fund increased 25.30%. The common stocks of the C Fund finished December 4.54% in the black, while boasting gains of 26.25% for the year.

The international (I) fund saw the second-best monthly performance of the TSP’s core offerings, growing 5.39%. Since January of last year, the I Fund has posted increases to the tune of 18.38%. And the fixed income (F) fund gained 3.72% last month, bringing its performance to 5.58% for 2023.

The G Fund, which is made up of government securities and grows by a statutorily mandated rate, increased 0.39% in December. Over the course of 2023, the G Fund grew 4.22%.

Each of the TSP’s lifecycle (L) funds, which shift toward more conservative investments as participants get closer to retirement, likewise had strong performances last month. The L Income Fund, designed for people who have already begun making withdrawals, increased 1.87%; L 2025, 2.39%; L 2030, 3.71%; L 2035, 4.05%; L 2040, 4.37%; L 2045, 4.66%; L 2050, 4.93%; L 2055, 5.61%; L 2060, 5.61%; and L 2065, 5.62%.

Over the course of 2023, the L Income Fund grew 8.99%; L 2025, 11.25%; L 2030, 15.76%; L 2035, 16.91%; L 2040, 18.04%; L 2045, 19.03%; L 2050, 20.00%; L 2055, 23.31%; L 2060, 23.30%; and L 2065, 23.31%.