How is the F fund doing?
Basic Info. Thrift Savings Plan F Fund Monthly Returns is at -1.41%, compared to -0.19% last month and -2.58% last year. This is lower than the long term average of 0.44%.
After a mixed showing to start 2024, nearly all of the portfolios in the federal government's 401(k)-style retirement savings program posted positive returns last month. In February, only the Thrift Savings Plan's fixed income (F) fund finished the month in the red, dropping 1.41%.
Generally, if market interest rates rise, the value of your F Fund shares will fall, and vice versa. The effect of rising interest rates is offset, to some extent, by the interest payments that are periodically received from the bonds and credited to the shares' value.
What is the safest TSP fund? The G fund is generally the safest option as it invests in government securities. Although you won't lose money investing in this fund, your rate of return will be low. This may be a good option if you are close to retirement.
Basic Info. Thrift Savings Plan L 2050 Fund Monthly Returns is at 3.62%, compared to 0.41% last month and -2.16% last year. This is higher than the long term average of 0.81%.
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 small- and mid-size businesses of the Thrift Savings Plan's S Fund had the best performance in December, growing by 10.45%. Over the course of 2023, the S Fund increased 25.30%. The common stocks of the C Fund finished December 4.54% in the black, while boasting gains of 26.25% for the year.
Basic Info. Thrift Savings Plan F Fund Monthly Returns is at -1.41%, compared to -0.19% last month and -2.58% last year. This is lower than the long term average of 0.44%.
The average maturity is 8.9 years, and the average duration is 6.7 years.
The TSP is not all bad in retirement. The TSP certainly does lack some flexibility in retirement but its greatest strength is SIMPLICITY. Fewer options often means fewer ways to make a mistake. You'll have to decide if you value simplicity or flexibility when choosing where to keep your retirement money.
What is the most aggressive TSP fund?
But to summarize that article, the 5 core funds can be broken down into conservative and aggressive funds. The conservative funds are the G and F funds and the aggressive funds are the C, S, and I funds.
You might consider investing more in our stock funds (C, S, and I) than in the more conservative G and F Funds at this stage of your career. Stocks present more risk but offer the opportunity for potentially higher returns over time.
To stay on track to retire at 67, you should have saved 3 times your income by age 40, according to retirement-plan provider Fidelity Investments.
To receive the maximum Agency or Service Matching Contributions, you must contribute 5% of your basic pay each pay period.
Once you retire from federal service, you can no longer contribute to your TSP. However, that doesn't mean that your TSP won't continue to grow. You will benefit from compound interest, and you can still transfer retirement assets from other existing accounts, such as a 401(k) or IRA.
The F Fund (bonds) and the C, S, and I Funds (stocks) have higher potential returns than the G Fund (government securities). But stocks and bonds also carry the risk of investment losses that the G Fund does not have.
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.
For federal employees, TSPs' automatic contributions, higher employer matches and low fees probably make them a superior choice. For people who don't work for the federal government, 401(k) plans are still a good choice for retirement savings and can be central parts of individual financial strategies.
The primary difference between Roth and traditional TSPs is how they're taxed. Specifically, a traditional TSP is better if you want to leverage your account to decrease your current income taxes and pay for withdrawals during retirement.
But before you can even start, you have to decide between the Traditional vs. Roth TSP account. For most, the Roth TSP is the better choice because currently, you're in a lower tax bracket than you'll be in the future.
What happens if you over invest in TSP?
If you over contribute, you may request a refund of the excess amount from the TSP. For a limited in January each year, we make the Refund Request Form available. You can get the form by calling the ThriftLine or logging in to My Account. We must receive your excess deferral refund request no later than March 15.
Thrift Savings Plan C Fund Monthly Returns is at 5.34%, compared to 1.68% last month and -2.44% last year. This is higher than the long term average of 0.96%.
The rule of 72 is a great way to estimate how long it will take for your TSP to double. This rule says that if you divide 72 by your average investment return then you'll get how many years it takes to double. For example, if on average you earn 10%/year then your money will take 7.2 years to double (72/10= 7.2).
Basically, if you leave service before the year you turn 55 then you will have to wait until age 59 and ½ to avoid the 10% penalty (unless you qualify for a different exception). Note: Your traditional TSP withdrawals will still be subject to taxes even if you avoid the 10% penalty.
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 .
