Retirement funds start the year strong

The investment options in the federal employee retirement savings plan started the year with small across-the-board gains after a strong end to 2010.

The Thrift Savings Plan's I Fund, which invests in international stocks, grew the most in January, increasing 2.41 percent. The C Fund -- invested in common stocks of large companies on the Standard & Poor's 500 Index -- was close behind, advancing 2.37 percent last month. The C Fund had a solid 12 months, posting a 22.18 percent gain. The I Fund was up 16.57 percent in that time.

The S Fund, which invests in small and midsize companies and tracks the Dow Jones Wilshire 4500 Index, grew 1.23 percent in January. It also boasted the biggest 12-month increase, spiking 33.90 percent.

The stable government securities (G) fund saw a small monthly gain of 0.24 percent, while the fixed income bonds in the F Fund, the only offerings in the red for December, had the lowest monthly growth for January, at 0.13 percent. During the past 12 months, the fund has increased 5.23 percent. The G Fund gained 2.76 percent during the same period.

All the life-cycle funds, designed to move investors to less risky portfolios as they get closer to retirement, saw small gains for the second month in a row. The L 2040 rose 1.75 percent for the month; L 2030 increased 1.57 percent; L 2020 gained 1.35 percent; and L Income, for people who have reached their target retirement date and have started withdrawing money, rose 0.63 percent. The new L 2050 Fund opened on Jan. 31 after the L 2010 closed at the end of last year.

L 2040 was up 19.32 percent during the past 12 months, with L 2030 close behind at 17.17 percent. L 2020 gained 14.40 percent in that time; and L Income, 6.89 percent.