People wearing protective face masks pass the New York Stock Exchange on May 26 as employees arrive for the partial reopening of the trading floor. Mark Lennihan / AP
TSP Portfolios Continue Gains, But Fail to Make Up Earlier Losses
Although all of the funds in the federal government’s 401(k)-style retirement savings program posted modest increases in May, it was not enough to make up for the economic crash at the start of the coronavirus pandemic.
The federal government’s 401(k)-style retirement savings program continued its recent positive trajectory across all portfolios last month, although most still have not recouped the losses sustained when the global economy faltered earlier this year due to the coronavirus pandemic.
The small- and mid-size stocks of the Thrift Savings Plan’s S Fund led the way, gaining 8.79% in May. But so far this year, the fund remains 9.47% in the red. The common stocks in the C Fund increased 4.76% last month, bringing its 2020 losses to 5.03%.
The international (I) fund gained 4.50% last month, although its losses remain the starkest in the TSP this year at 14.04%. The fixed income bonds in the F Fund grew 0.46% in May, bringing its 2020 gains to 5.42%. And the G Fund, which is made up of government securities, gained 0.06% last month. So far this year, the G Fund has grown 0.53%.
All of the TSP’s lifecyle (L) funds, which shift investments to more stable portfolios as participants get closer to retirement, posted gains last month, yet remain in the red so far this year. The L Income Fund grew 1.23% in May; L 2020, 1.31%; L 2030, 3.25%; L 2040, 3.88%; and L 2050, 4.43%.
So far in 2020, the L Income Fund has lost 0.95%; L 2020, 1.49%; L 2030, 4.53%; L 2040, 5.65%; and L 2050, 6.67%.