What is the current F fund return?
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%.
| TSP Investment Funds 8/31/1990 - 3/22/2024 | TSP G Fund | TSP F Fund |
|---|---|---|
| Last Price (3/22/2024) | 18.1322 | 19.0485 |
| Change (1-Day) | 0.01% | 0.34% |
| YTD Return | 0.94% | -0.91% |
| 1-Year Return | 4.30% | 1.31% |
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 has grown 7.49% in 2024, marking the best performance among the TSP's core funds. The small- and mid-size businesses of the S Fund posted the strongest numbers in February, gaining 6.03%.
Thrift Savings Plan G Fund Monthly Returns is at 0.33%, compared to 0.34% last month and 0.28% last year.
The conservative funds are the G and F funds and the aggressive funds are the C, S, and I funds.
The G Fund is often considered the safest option among TSP funds. It invests in U.S. Treasury securities, providing a stable return with minimal risk.
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.
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.
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.
Can TSP make you a millionaire?
With a little self discipline and the power of compound interest, millionaire status is available to federal employees who make wise use of the Thrift Savings Plan.
Staying with the TSP
You can keep your TSP account after you separate from federal service as long as you have a vested balance of $200 or more. Many participants choose to keep their money in the TSP because of the TSP's low-cost funds.
If you follow this formula, it should allow you to accumulate your full annual salary by age 30. Continuing at the same average savings rate should yield the following: Age 35—two times annual salary. Age 40—three times annual salary.
If you choose to invest in the G Fund, you are placing a higher priority on the stability and preservation of your money than on the opportunity to potentially achieve greater long-term growth in your account through investment in the other TSP funds.
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 ...
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 performance of the C Fund is evaluated on the basis of how closely its returns match those of the S&P 500 Index.
TSP contributions and investing should be top of mind when you begin your federal career. An employee who earns 50,000 per year and contributes 2,500 dollars with a 2,500-dollar match from the government can reach the TSP millionaire dollar mark in 25-30 years by investing aggressively.
According to the latest figures from the Federal Retirement Thrift Investment Board (FRTIB), the agency that oversees the Thrift Savings Plan (TSP), there are now 116,827 TSP millionaires as of the end of December 31, 2023. At the end of 2022, there were 76,889, which is a 52% increase in one year.
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.
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.
How does the TSP F fund work?
The F Fund invests in a bond index fund that tracks the Barclays Capital U.S. Aggregate Bond Index. This broad index includes U.S. Government, mortgage-backed, corporate, and foreign government (issued in the U.S.) sectors of the U.S. bond market.
If bond yields rise, existing bonds lose value. The change in bond values only relates to a bond's price on the open market, meaning if the bond is sold before maturity, the seller will obtain a higher or lower price for the bond compared to its face value, depending on current interest rates.
The answer is both yes and no, depending on why you're investing. Investing in bonds when interest rates have peaked can yield higher returns. However, rising interest rates reward bond investors who reinvest their principal over time. It's hard to time the bond market.
You may have heard of age-based asset allocation guidelines like the Rule of 100 and Rule of 110. The Rule of 100 determines the percentage of stocks you should hold by subtracting your age from 100. If you are 60, for example, the Rule of 100 advises holding 40% of your portfolio in stocks.
For high earners, a Roth TSP may be one of the best ways to save money after tax, as there is an earnings limit on contributing to a Roth IRA. A traditional TSP may be a better choice if you want to reduce your current taxable income and pay taxes on withdrawals during retirement.
