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

FAQs

What is the C fund in the Thrift Savings Plan? ›

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.

The S Fund's investment objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index, a broad market index made up of stocks of small-to-medium U.S. companies not included in the S&P 500 Index.

Agency/Service matching contributions

This means that when you contribute 5% of your basic pay, your agency or service contributes an amount equal to 4% of your basic pay to your TSP account. Together with the Agency/Service Automatic (1%) Contribution given to you, your agency/service puts in a total of 5%.

If you are 591/2 or older, you can make withdrawals from your TSP account while you are still employed . You must pay income tax on the taxable portion of your withdrawal unless you roll it over to an IRA or other eligible employer plan .

THE G FUND:

This gives the G Fund the best overall risk/reward ratio of any Treasury investment, and it's only available to TSP investors. More specifically, the G Fund interest rate is based on the average of U.S Treasuries with a duration of 4 years or more, and the interest rate resets monthly.

While there is some volatility, the C Fund is very popular because there is tremendous opportunity for significant dividends as market prices shift. Have questions about the C Fund and how to make the most of your TSP? Contact us to learn more.

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. If you extrapolate this number, you can see that if you want to get $40,00 a year, you're shooting for a $1,000,000 balance.

Age 40—three times annual salary. Age 45—four times annual salary. Age 50—five times annual salary. Age 55—six times annual salary.

Dave Ramsey's advice is to save 5% into the TSP to get the full match, then max out a Roth IRA, and then put more into the TSP if you are able to save more after that.

Should I put more than 5% in TSP? ›

If you are contributing less than 5% of your basic pay, you are missing out on free money. You can also elect to contribute more than 5% of your basic pay to your TSP account, as long as the contributions do not exceed the IRS deferral limit.

Small-Capitalization Stock Index Fund (S Fund)

The S Fund is considered one of two funds with the greatest risk in the TSP. 5 It has outperformed the C Fund with proportionately greater volatility over time. The BlackRock iShares has no exact S Fund equivalents.

Total TSP assets at the end of 2023 were $845 billion. 4,060,009 FERS TSP accounts with an average account balance of $175,692. To compare, the average 401(k) balance based on 4.9 million defined contribution retirement plans was $112,572 at the end of 2022, according to Vanguard's 2023 analysis.

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.

The TSP C-Fund which approximates the S&P 500, has had an average annual 12.29 percent gain between 1988 and 2020; the TSP F-Fund, a broad index representing the U.S. bond market, has had an average annual 6.29 percent from 1988 to 2020; and the G-fund, long term U.S. Treasury notes, has had an average annual of 4.70 ...

Investors generally should consider Class A shares (the initial sales charge alternative) if they expect to hold the investment over the long term. Class C shares (the level sales charge alternative) should generally be considered for shorter-term holding periods.

While there is some volatility, the C Fund is very popular because there is tremendous opportunity for significant dividends as market prices shift. Have questions about the C Fund and how to make the most of your TSP? Contact us to learn more.

You may change how your money is invested by logging into your TSP account on the TSP website and making a Contribution Allocation and/or an Interfund Transfer. You can also call the ThriftLine at 877-968-3778 and follow the automated prompts.

How can I use the F Fund in my TSP? 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).