Stock investments in TSP saw gains after experiencing prolonged losses.
Thrift Savings Plan Sees Growth Across Most Portfolios in May
The Thrift Savings Plan (TSP), the federal government's 401(k)-style retirement savings plan, managed by the Federal Retirement Thrift Investment Board (FRTIB), has shown signs of recovery in May, with most of its portfolios finishing the month in the black.
The common stocks of the C Fund led the way with a gain of 6.29% for the month. The S Fund, which consists of small- and mid-size businesses, followed closely behind with a growth of 7.21%. The international investments of the I Fund also performed well, with a TSP-best 14.42% increase so far this year.
All lifecycle (L) funds, designed to automatically adjust the asset allocation as retirement approaches, finished May in the black. The L 2035 fund saw the highest growth of 4.97%, while the L 2030 fund and L 2025 fund increased by 4.05% and 1.87%, respectively. The L Income Fund, which is designed for retirees, grew by 1.79%.
The L 2045 fund, L 2040 fund, L 2050 fund, L 2055 fund, L 2060 fund, L 2065 fund, and L 2070 fund all saw growth in May, with the L 2070 fund being the standout performer at 5.90%. Since January, the L 2035 fund has increased by 4.23%, the L 2030 fund by 4.05%, and the L 2045 fund by 4.53%. The L 2050 fund has seen an increase of 4.66%, the L 2065 fund and L 2060 fund have both increased by 5.03%, and the L 2070 fund has increased by 5.05%.
However, the fixed income (F) fund, which is made up of government securities, lost value last month, falling 0.71%. Since January, the F Fund has grown by 2.44%. The G Fund, which is also made up of government securities, grew by 0.36% in May as per its statutorily mandated rate. So far this year, the G Fund has increased by 1.85%.
Despite the growth in May, the S Fund remains 3.13% in the red for the year. The L Income Fund has grown by 2.94% since January, while the L 2025 fund has increased by 2.95%. The 2025 performance of the common stocks of the C Fund is now 1.05%.
All but one portfolio of the Thrift Savings Plan finished May in the black, with the fixed income (F) fund being the only exception. As we move forward, investors will be keeping a close eye on these trends to see how the TSP accounts continue to perform.
