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Most TSP Portfolios Tumble in October
Only two funds in the federal government’s 401(k)-style retirement savings program saw increases last month.
Most of the portfolios in the federal government’s 401(k)-style retirement savings program lost ground for the second straight month in October.
The Thrift Savings Plan’s S Fund, invested in small- and mid-size businesses, was one of only two portfolios to increase in value, gaining 0.50% last month. So far this year, the S Fund has increased 3.97%.
The G Fund, which is made up of government securities, grew at 0.06% in October, bringing its 2020 gains to 0.82%. The fixed income bonds in the F Fund lost 0.42% last month, bringing its 2020 gains down to 6.30%.
The common stocks in the C Fund fell 2.66% last month. So far this year, the C Fund has increased 2.69%. And the international (I) fund lost 3.97%, bringing its losses in 2020 to 10.53%.
All of the TSP’s lifecycle (L) funds, which shift to more stable investments as participants get closer to retirement, fell in October. The L Income Fund, for those who have already begun making withdrawals, fell 0.58%; L 2030, 1.61%; L 2040, 1.91%; and L 2050, 2.17%.
So far this year, the L Income Fund has gained 1.01% and L 2030, 0.12%. The L 2040 fund lost 0.21% and L 2050 fell 0.56%.
The new five-year L funds, established over the summer, were not spared from the recent downturn in financial markets. The L 2025 Fund lost 1.30%; L 2035, 1.76%; L 2045, 2.04%; L 2055, 2.60%; L 2060, 2.60%, and L 2065, 2.60%. Since these funds were created in July, the TSP is not tracking their performance over time this year.