Every TSP Fund Rebounded in July

After months of volatility and declining returns, every portfolio in the federal government’s 401(k)-style retirement savings program finished July in the black.

Leading the charge was the Thrift Savings Plan’s S Fund, which is composed of small- and mid-size businesses and gained 10.32% last month. That brings the fund’s 2022 performance up to -20.48%. And the common stocks of the C Fund increased 9.22% in July. So far this year, the C Fund has lost 12.58%.

The international stocks in the I Fund finished July 5.15% in the black. Since January, the I Fund has lost 14.77%. And the fixed income (F) Fund gained 2.47% last month, bringing its performance this year to -7.86%.

The G Fund, which is made up of government securities, increased by its statutorily mandated rate of 0.26%. Despite the strong July across financial markets, the G Fund remains the only TSP fund to post a positive return in 2022, gaining 1.41%.

Each of the TSP’s lifecycle (L) funds, which shift to more stable investments as participants get closer to retirement, saw similar rebounds in July. The L Income Fund, which is designed for people who have already begun making withdrawals, increased 2.21%; L 2025, 3.50%; L 2030, 5.00%; L 2035, 5.47%; L 2040, 5.92%; L 2045, 6.33%; L 2050, 6.71%; L 2055, 7.89%; L 2060, 7.90%; and L 2065, 7.90%.

But last month’s gains were not enough to lift any L Fund out of the red for 2022. So far this year, the L Income Fund is down 2.74%; L 2025, 5.79%; L 2030, 8.53%; L 2035, 9.53%; L 2040, 10.48%; L 2045, 11.34%; L 2050, 12.13%; L 2055, 14.27%; L 2060, 14.27%; and L 2065, 14.28%.

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