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TSP Funds Hit the Skids in September
After months of gains, most of the portfolios in the federal government’s 401(k)-style retirement savings program ended September in the red.
All but one of the portfolios in the federal government’s 401(k)-style retirement savings program ended their months-long streak of gains in September.
Only the Thrift Savings Plan’s G Fund, which is made up of government securities, ended last month in the black, increasing 0.06%. So far in 2020, the G Fund has gained 0.76%.
The common stocks of the C Fund fared the worst in September, losing 3.8% and bringing its 2020 performance down to 5.5%. The small- and mid-size businesses in the S Fund fell 3.04% last month, bringing its gains since January down to 3.45%.
The international (I) fund lost 2.60% in September. It is the only portfolio in the TSP to have negative performance on the year, which now sits at 6.83% in the red. The fixed income bonds in the F Fund fell 0.03% last month, bringing its 2020 gains down to 6.75%.
All of the TSP’s lifecycle (L) funds, which shift to more stable investments as participants get closer to retirement, lost value in September. The L Income Fund, for those who have already begun making withdrawals, fell 0.66%; L 2030, 1.92%; L 2040, 2.30%; and L 2050, 2.63%.
So far this year, the L Income Fund has gained 1.59%; L 2030, 1.76%; L 2040, 1.73%; and L 2050, 1.64%.
Last month, the L 2025 Fund lost 1.58%; L 2035, 2.11%; L 2045, 2.46%; L 2055, 3.2%; and L 2060, 3.2%. Since these portfolios were established in July, the TSP does not yet maintain yearlong performance metrics for them.