TSP Funds Bounce Back After Rough September

Nearly every portfolio in the federal government’s 401(k)-style retirement savings program bounced back from a lackluster September to post solid gains last month.

The common stocks of the Thrift Savings Plan’s C Fund led the way, increasing 7% in October. So far this year, the C Fund has grown 24.02%.

The small- and mid-size businesses in the S Fund finished October 5.43% in the black, bringing its 2021 performance to 17.73%. And the I Fund, which is composed of international investments, gained 2.46% last month. Since January, the I Fund has increased 11.23%.

The fixed income (F) fund was the only TSP portfolio to finish October in the red, losing 0.04%. So far this year, the F Fund has lost 1.44%.

The G Fund, which is composed of government securities, increased by 0.13% last month, bringing its 2021 gains to 1.12%.

Each of the TSP’s lifecycle (L) funds, which shift to more stable investments as participants get closer to retirement, posted gains in October. The L Income Fund, for those who have already begun making withdrawals, increased 1.28%; L 2025, 2.33%; L 2030, 3.14%; L 2035, 3.43%; L 2040, 3.72%; L 2045, 3.97%; L 2050, 3.97%; L 2055, 5.12%; L 2060, 5.11%; and L 2065, 5.11%.

So far in 2021, the L Income Fund has increased 4.85%; L 2025, 8.89%; L 2030, 11.31%; L 2035, 12.31%; L 2040, 13.33%; L 2045, 14.19%; L 2050, 15.08%; L 2055, 18.41%; L 2060, 18.41%; and L 2065, 18.41%.