Thrift Savings Plan F Fund Monthly Returns Monthly Analysis: Thrift Savings Plan Monthly Returns (2024)

FAQs

What is the return on the Thrift Savings Plan F fund? ›

Thrift Savings Plan F Fund Monthly Returns is at 2.33%, compared to 0.94% last month and -0.07% last year. This is higher than the long term average of 0.44%.

The TSP I Fund is an international stock index fund that tracks the investment performance of the Morgan Stanley Capital International ACWI IMI ex USA ex China ex Hong Kong Index.

The C Fund holds all the stocks included in the S&P 500 Index in virtually the same weights that they have in the index.

More specifically, the F Fund tends to be a better investment than the G Fund when interest rates are flat or falling, while the G Fund is better when interest rates are rising. Right now, interest rates are rising, and so it is safer to have money in the G Fund.

You can request to receive a total distribution of your entire TSP account balance if you want to take all of your money out of the TSP. Once processed, your TSP account balance will be $0, and you'll no longer be able to move money into the TSP from eligible plans.

On the opposite side of the volatility spectrum, the S Fund (small cap U.S. stocks) has the largest annualized standard deviation: 21.44% as of this writing, and is therefore the riskiest.

The I Fund can be useful in a portfolio that also contains stock funds that track other indexes such as the C Fund and the S Fund. By investing in all segments of the stock market (as opposed to just one), you reduce your exposure to market risk. The I Fund can also be useful in a portfolio that contains bonds.

In periods of falling interest rates, the F Fund will experience gains from the resulting rise in bond prices. So in the long run, you may expect F Fund returns to exceed those of the G Fund; however, you should also expect greater price volatility (up and down movements).

Fees and Expenses: While the TSP has low fees compared to many other retirement plans, fees and expenses can still impact your overall returns and potentially lead to losses. Lack of Diversification: If your TSP investments are concentrated in a few funds or asset classes, you may be exposed to higher risks.

Should I put all my money in the TSP C fund? ›

If you are approaching retirement and are planning to take withdrawals from your TSP soon, 100% in the C fund is almost never a good idea. As we saw from the graphs, the C fund is very volatile and very difficult to predict in the short term.

Your best bet is to stick with the C, S and I Funds. Here's the ratio we recommend for your portfolio: 80% in the C Fund, which is tied to the performance of the S&P 500. 10% in the S Fund, which includes stocks from small- to mid-sized companies that offer high risk and high return.

There's a one-word answer to that question: More! There is no such thing as too much money in the Thrift Savings Plan. If you want your TSP balance to be able to generate an inflation-indexed annual income of $10,000, most financial planners will suggest that you have a $250,000 balance at the time you retire.

The G Fund is invested in U.S. Treasury securities specially issued to the TSP. Payment of principal and interest is guaranteed by the U.S. government. Thus, there is no “credit risk.”

In periods of falling interest rates, the F Fund will experience gains from the resulting rise in bond prices. So in the long run, you may expect F Fund returns to exceed those of the G Fund; however, you should also expect greater price volatility (up and down movements).

The C fund continues to post the highest year-to-date return at 15.28%, and a 11.08% return over the last 12 months.

G Fund Returns

The G Fund has earned a compound annualized return of 4.2% since August 1990. Its year-to-date return is 3.04%, and its 1-year return is 4.57%. A $1,000 investment in 1990 would be worth $4,116 today.