Retirement funds finish strong in 2010

The investment options in the federal employee retirement savings plan performed well in December 2010, following a volatile November.

The Thrift Savings Plan's I Fund, invested in international stocks, grew the most last month, gaining 8.12 percent after a large loss in November. The S Fund, which invests in small and midsize companies and tracks the Dow Jones Wilshire 4500 Index, was close behind, advancing 7.38 percent in December. It also boasted the biggest increase for 2010, spiking 29.06 percent. The I Fund was up 7.94 percent for the year.

The C Fund -- invested in common stocks of large companies on the Standard & Poor's 500 Index -- grew 6.68 percent. The C Fund had a solid year, posting 15.06 percent gains in 2010. The stable government securities (G) fund had the lowest monthly growth, at only 0.20 percent. The G Fund gained 2.81 percent for 2010.

The fixed income bonds in the F Fund were the only offerings in the red for December, losing 1.05 percent. But the fund remained positive for the year, with a 6.71 percent increase.

All the life-cycle funds, designed to move investors to less risky portfolios as they get closer to retirement, saw gains in December following a month of small losses. The L 2040 rose 5.67 percent for the month; L 2030 increased 4.96 percent; L 2020 gained 4.08 percent; L 2010 was up 1.49 percent; and L Income, for people who have reached their target retirement date and have started withdrawing money, also rose 1.49 percent.

L 2040 was up 13.89 percent for 2010, with L 2030 close behind at 12.48 percent. L 2020 gained 10.59 percent for the year; L 2010, 5.65 percent; and L Income, 5.74 percent.

The L 2010 Fund closed on Dec. 31, 2010, and all investments were transferred to the L Income Fund.