Thrift Savings Plan funds end the year on the downswing

The investments of the federal government’s 401(k)-style retirement savings program encountered a setback last month, as all but one of the Thrift Savings Plan’s portfolios lost value in December.

The G Fund, which is made up of government securities, increased at its statutorily mandated rate of 0.36% last month. Across 2024, the G Fund gained 4.40%.

The small- and mid-size businesses of the S Fund saw the worst performance, falling 7.05% in December. Still, the S Fund finished 2024 up 16.93% from a year ago. The I Fund, which is made up of international investments, fell 2.83%, bringing its 2024 growth down to 4.27%.

The common stocks of the C Fund lost 2.39% last month, but the portfolio still had the best performance for the year, growing 24.96% over 2024.

And the fixed income (F) fund fell 1.71% in December. The F Fund had the worst performance of the TSP’s core funds on an annual basis, growing just 1.33% since last January.

Each of the TSP’s lifecycle (L) funds similarly lost money last month. The L Income Fund, which is designed for people who have already begun making withdrawals, fell 0.66%; L 2025, 0.81%; L 2030, 1.86%; L 2035, 2.08%; L 2040, 2.30%; L 2045, 2.49%; L 2050, 2.66%; L 2055, 3.14%: L 2060, 3.14%; L 2065, 3.14%; and L 2070, 3.13%.

Over the course of 2024, the L Income Fund has grown 7.37%; L 2025, 8.28%; L 2030, 11.52%; L 2035, 12.18%; L 2040, 12.85%; L 2045, 13.42%; L 2050, 14.02%; L 2055, 16.28%; L 2060, 16.28%; and L 2065, 16.28%.

Data regarding the L 2070 fund’s year-to-date performance will begin next month, as the portfolio launched last summer.