your data under the CCPA. Following are longer term rates of return for each fund, as of August 31, 2022. 2023 Ralph R. Smith. So far in 2022, there has been a change in how TSP investors are allocating their investment funds. Annuity Data Breach The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will depend on how much you (and your agency or service, if youre eligible to receive agency or service contributions) put into your account during your working years and the earnings accumulated over that time. TSP stock funds are still down for the year with very slight gains for three funds in August. Labor Relations Net administrative expense ratio Some TSP investors were feeling more positive at the end of July. This may affect our ability to personalize ads according to your preferences. The G fund was the best performer for the month, with a positive 0.25% return, while the I fund was the worst, falling by 5.79%. Right? The market has already dropped significantly and it has recovered significantly. by NiceUnparticularMan Fri Apr 08, 2022 2:09 pm, Post The others are July, January, September, April, November, May, March, June, December, August and February.". The international stocks in the I Fund saw the worst performance of the TSP's core funds, falling 5.79% in August. These investors are optimistic this is a time to buy when stock prices are low and before they head back up again. Currently, a raise of 4.6% with inflation going up at a yearly rate of 8.5%, and TSP returns in the C Fund down -16.15% so far in 2022, the highest raise in 20 years does not add up to economic prosperity in the immediate future. $0.570/$1,000 account balance 0.057% (5.7 basis points), Benchmark index All rights reserved. The federal Thrift Savings Plan offers five different individual investment funds for participants: The Government Securities Investment (G) Fund. etc.). TSP Planning Report August 2022 - Stephen Zelcer Weighted ER< .10%. by Joe Public Tue Apr 06, 2021 8:30 pm, Post Payment of principal and interest is guaranteed by the U.S. Government. By law, the G Fund must be invested in nonmarketable U.S. Treasury securities specially issued to the TSP. Some of the L Funds have seen better TSP returns so far this year than the core stock funds. Total expense ratio Rapid inflation hurts everyone. Every investors situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Month to month trends as shown above are interesting, but it is important to remember that short term market volatility is to be expected and employees should not be making investment decisions based on short term performance. When reading that 2022 has not been a good year for TSP investors, some readers may assume this refers to problems with the TSP migration to a new website. You If you are within 5 years of retirement, you should email me to get a more customized recommendation. will not hand over your personal information to any third parties. Interesting. A description of each of the TSP funds is here. Historical Annuity Rates | The Thrift Savings Plan (TSP) Get the latest pay and benefits news delivered to your inbox. And if you've ever invested in commercial money market funds, you know that interest rates on these are even lower than T-Bill returns. by MnD Sat Apr 09, 2022 11:18 am, Post Roth The rate is calculated monthly, based on the average yield of all U.S. Treasury securities with 4 or more years to maturity. by mokaThought Tue Mar 02, 2021 7:29 pm, Post The cost of electricity is up. Interest rates are rising. Should FEHB Enrollees Reconsider Medicare Part D? website. Preferences menu of your browser. That good news led to a report in the Wall Street Journal titled Investors Return to Stock Funds, Starting to Reverse Recent Exodus. Unions So far this year, the I Fund has fallen 19.71%. Government Shutdown This website uses cookies to enhance user experience and to analyze performance and ensure the proper functioning of our It offers you the potential to earn the higher investment returns associated with equity investments. July 2022 provided Thrift Savings Plan (TSP) investors with the best month of returns since the Trump Administration. So far in 2022, regarding the performance of the TSP core funds, here is the bad news: The best news is that TSP investors have access to the G Fund which is the only TSP Fund with a positive return so far this year. Holidays International Stock Index Investment (I) Fund. This allows us to lock in a safe investment return while the investment model waits for bullish market conditions to return. by AnnetteLouisan Sat Apr 09, 2022 10:05 am, Post Hope for the best and plan for the worst when allocating money for your future retirement. No one knows yet but the recent bout of inflation may have killed the super bull. All of the other TSP Funds are down so far this year. Performance & Risks Composition Fees & More Info The G fund was the best performer for the month, with a positive 0.25% return, while the I fund was the worst, falling by 5.79%. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. More than $15 billion was transferred into the G Fund between April and July. by delamer Tue Apr 06, 2021 9:28 pm, Post Given rates rising, should I just keep it as is? - Thich Nhat Hanh. At the end of 2021, the C Fund was the most popular fund and the G Fund was second. 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. Member FINRA/SIPC, What to Look For in a Fed-Focused Financial Advisor, TSP webinar on the Serving Those Who Serve website. It went up and down after that a number of times but eventually hit its peak on January 4, 2022 when it went to 36,800. technologies for the following purposes: We do not allow you to opt-out of our certain cookies, as they are necessary to **Written by Jennifer Meyer, Financial Planner. VA This article TSP webinar on the Serving Those Who Serve website. Discuss all general (i.e. The 2nd estimate of Q2 GDP shows a negative -.6% GDP. Holidays Personal Information. If you opt out we will not be able to offer you personalised ads and If this is such a great idea why doesnt everyone do it? This month's unemployment rate dropped slightly to 3.5%, from 3.6%. Mr. Zurndorfer does not pay compensation to or receive compensation from STWS in connection with Presentations hosted by Mr. Zurndorfer. by RJC Wed Apr 07, 2021 8:38 am, Post Ralph Smith has several decades of experience working with federal human resources issues. Aggregate Bond Index. That sounds good and makes a good headline. It was established by Congress in the Federal Employees' Retirement System Act of 1986 and offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans. $0.570/$1,000 account balance 0.057% (5.7 basis points), Investment expense ratio1 Strictly Necessary Cookies - Always Active. by AnnetteLouisan Sat Apr 09, 2022 3:28 pm, Return to Investing - Theory, News & General, Powered by phpBB Forum Software phpBB Limited, Time: 0.258s | Peak Memory Usage: 9.35 MiB | GZIP: Off. Ah, yes, inflation: one of the greatest risks to bond investors. It's a nice option to have right now. PMI (Purchasing Managers Index) continued to expand (any reading above a score of 50 means expansion), although slower than in previous months. Consider this: On August 12, 1982, the Dow Jones Industrial Average hit bottom. Is this a better idea than total bond in this environment? Whistleblower. TSP G Fund rate 3.00% (June 2022) - Bogleheads.org by AnnetteLouisan Mon Apr 04, 2022 4:26 pm, Post A $1,000 investment in 1990 would be worth $3,895 today. During the month of July, the S&P 500 rebounded over 9%. Major employers have announced massive layoffs. We are here to serve you! The rate is calculated monthly, based on the average yield of all U.S. Treasury securities with 4 or more years to maturity. 2022 has not been a good year for stock market investors. We are here to serve you! All other funds, including the Lifecycle Funds, are showing a negative return for August. The trend into the G Fund was apparent. This months reading came in at 52, compared to Julys 53, and Junes 56.1. Month to month trends as shown above are interesting, but it is important to remember that short term market volatility is to be expected and employees should not be making investment decisions based on short term performance. Any opinions are those of Jennifer Meyer and not necessarily those of RJFS or Raymond James. FEGLI Because we do not track you across different devices, FEHB This fund offers you the opportunity to earn rates of return that exceed money market fund rates over the long term (particularly during periods of declining interest rates). Top ten holdings as of 12/31/2022 The G Fund rate is calculated by the U.S. Treasury as the weighted average yield of approximately 183 U.S. Treasury securities on the last day of the previous month. The G Fund is up 1.15% so far in 2022. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Social Security The funds with the shorter projected times before potential retirement have a larger amount of investments in the G Fund and less in the more aggressive stock funds. Unions Transfers into the G Fund have been a trend for the past four months. user asks your browser to store on your device in order to remember information about you, such as your and analytics partners. Proudly powered by WordPress Bargaining TSP G Fund - TSP Folio It was 3% in July. Telework The L Funds strategy is to invest in an appropriate mix of the G, F, C, S, and I Funds for a particular time horizon, or target retirement date. Inflation has been going up and is the highest it has been in 40 years. by dukeblue219 Tue Apr 06, 2021 9:45 pm, Post The interest rate paid by the G Fund securities is calculated monthly, based on the market yields of all U.S. Treasury securities with 4 or more years to maturity. Because long-term interest rates are generally higher than short-term rates, G Fund securities usually earn a higher rate of return than do short-term marketable Treasury securities. Please note that not all of the investments and services mentioned are available in every state. by AnnetteLouisan Fri Apr 08, 2022 2:45 pm, Post It was 3% in July. TSP G Fund rate 3.00% (June 2022) - Page 2 - Bogleheads.org COLA According to the latest inflation figures, inflation is up 8.5% over the last 12 months. Higher interest rates also increase the possibility of a recession and raising rates to lower inflation without causing a recession is difficult to accomplish. Backlog by AnnetteLouisan Sat Apr 09, 2022 10:21 am, Post There will certainly be market volatility in September, with market participants guessing which way the Fed will go at the end of the month. So far this year, the L Income Fund has fallen 3.75%; L 2025, 7.52%; L 2030, 11.04%; L 2035, 12.27%; L 2040, 13.44%; L 2045, 14.48%; L 2050, 15.44%; L 2055, 18.00%; L 2060, 18.01%; and L 2065, 18.02%. In March, when money was still flowing into the stock funds, the C Fund had the largest percentage of TSP investor assets with 32.1%. For example, in July 2013, the G Fund interest rate was 2.125%. | "All I need are some tasty waves, a cool buzz, and I'm fine." Few people, if any, can accurately predict when the stock market is going to go up substantially for a period of time (bull market) or down substantially (bear market). TSP Performance Continues to Suffer: One Core Fund Down 22% - FedSmith The most precious gift we can offer anyone is our attention. This is really interesting. To put this in perspective, this is about the highest inflation rate in 40 years. Social media cookies are set by a range of social media services that we have Consider investing in the G Fund if you would like to have all or a portion of your TSP account completely protected from loss. President Biden has issued the letter outlining his alternative pay plan of a 4.6% average increase for the 2023 federal pay raise. by mokaThought Fri Apr 08, 2022 1:06 pm, Post by tj Fri Apr 08, 2022 9:35 pm, Post For example: Protests of government over-reach have sprung up in Sri Lanka and the Netherlands. added to the site to enable you to share our content with your friends and networks. Neither Raymond James, the Financial Advisors, STWS, nor Mr. Zurndorfer are affiliated with, endorsed by, or authorized to speak on behalf of the U.S. Government, the Federal Employee Retirement System, or any other Federal Government-sponsored benefits programs or retirement plans, including the Thrift Savings Plan (collectively, Federal Benefits Plans). The next Federal Reserve meeting is not scheduled until the end of September. Monthly returns from 2022 and year to date returns for 2022 and longer-term averages are shown below. by NiceUnparticularMan Fri Apr 08, 2022 10:24 am, Post These cookies are not used in a way that constitutes a sale of The S Fund is invested in a stock index fund that tracks the Dow Jones U.S. What Went Wrong With the TSP Website Migration? While politicians running for office may have issued positive press releases touting a monthly decrease in the rapid rise in inflation, most Americans were aware that over the past 12 months, the cost of food went up 10.9% (the largest increase since 1979), food at home was up 13.1%, electricity was up 15.2% and gas was up 44% (despite a drop in July). Performance figures for the month of August 2022 have been posted on the TSP website. However, for higher yields you will still need stock exposure. The presentations, seminars, articles, videos, Mr. Zurndorfer, and the educational information provided therein are not sponsored or endorsed by Raymond James, and should in no way be considered an endorsement of, referral to, recommendation for, or offer to purchase any product or service from Raymond James or the Financial Advisors. Similar to April, the C fund has the highest year-to-date return. We wish all FedSmith readers the best in coping with the current market downturn and making good investment decisions for the future! We are here to serve you! TSP performance in July was a bright spot in a dismal year for TSP fund returns. Although August started out with some continued momentum, by mid-month the momentum was turning, and the month ended on a decidedly negative note. Every TSP fund is down for the year with the exception of the G Fund which is up 1.60%. The Fed anticipates more rate increases over the remainder of this year. It was still close to where the index was in January 1964. Thank you for your service to our government! (source, TSP.gov). They are capable of The G Fund also has a positive return in August (0.18%). by delamer Wed Apr 07, 2021 9:33 am, Post The Fed Funds interest rate increased to 2.5%. One analyst recently wrote we are back to extreme levels of bullish optimism. In 1982, taxes had been cut, interest rates were going down and some optimists thought personal computers looked as though they may have a future in American homes. The C Fund was up 9.22% and the S Fund was up 10.32% in July. Ralph Smith has several decades of experience working with federal human resources issues. CSRS July is Best Month for TSP Performance Since Trump Administration: One Fund Up 10.32%, the appropriate Lifecycle Funds are down less than the more aggressive funds, until inflation was brought under control, Biden Issues Alternative Pay Letter for 2023 Federal Pay Raise: Average 4.6% Raise, 2023 COLA Update: CPI-W Up 9.1% in One Year. determining the most relevant content and advertisements to show you, and to monitor site traffic and Posts: 15091 Joined: Fri Aug 19, 2011 1:09 am Re: TSP G Fund rate 2.500% (April 2022) by rkhusky Sat Apr 09, 2022 8:37 pm One thing to realize about the G Fund is that, while it looks good now with no price drop and rising interest rates, previously when rates were dropping there was no corresponding price increase. Performance figures for the month of August 2022 have been posted on the TSP website. by AnnetteLouisan Fri Apr 08, 2022 3:14 pm, Post TSP GAO Dr. Fauci Advises Young Scientists to Stay out of Politics, Stories of the Public Service Loan Forgiveness Program, I Am Against Retreat: The Louis DeJoy Ethos and the Future of the Postal Service, GovExec eBook: How The Federal Government Plans To Better Serve Citizens. by NiceUnparticularMan Fri Apr 08, 2022 10:28 pm, Post One TSP Fund was up 10.32% for the month but is still down for the year. Email me here stephen@stephenzelcer.com, A fiduciary advisor specializing in retirement planning and federal benefits, Stephen Zelcer 2023 All rights reserved. See this months recommended portfolios. General Schedule Start by registering for an upcoming TSP webinar on the Serving Those Who Serve website. General Schedule Your newTSPcontributions should go 70% C fund, 30% S fund to catch a bounce-back. We also share information about your use of our site with our social media, advertising and analytics partners. Visit www.allaboutcookies.org The Small Capitalization Stock Index (S) Fund. But, by the end of July, this percentage had decreased to 30.2%. Reproduction without permission prohibited. July 11, 2022 Thrift Savings Plan Retirement Planning Well it's official. visiting for our advertising and marketing efforts. G, C, S funds show tiny returns in May, all others in the red Annuity may not be reproduced without express written consent from Ralph R. Smith. by mokaThought Fri Apr 08, 2022 11:56 am, Post In the first eight months of this year, Thrift Savings Plan (TSP) investors are not having a good year for most of their investments. use third-party cookies which are cookies from a domain different than the domain of the website you are Rebalance if fixed income <25% or >35%. Just curious. Time is the ultimate risk mitigator. That's not a small feat as the C Fund - the next. We do not allow you to opt-out of our certain cookies, as they are necessary to Because the TSP funds are trust funds that are regulated by the Office of the Comptroller of the Currency and not by the Securities and Exchange Commission (SEC), they do not have ticker symbols (i.e., unique identifiers assigned to securities, including mutual funds, registered with the SEC). As of the close of the stock market on August 23rd, the S and C Funds are showing another positive return so far in August. on the last day of the previous month. can choose not to allow certain types of cookies, which may impact your experience of the site and the FEGLI You can usually find these settings in the Options or If youre a Career Fed who wants the most from your retirement and benefits package … schedule an initial consultation today! Help us tailor content specifically for you: A Plea for Action on Pay, Hiring and Other Workforce Reforms, OPM Wants to Do More for Federal Workers' Wellness, The People Behind the Federal Spending Cut Dilemmas, Anti-Telework Bill Makes Its Way to the Senate, Using Human-Centered Technology to Modernize and Better Serve Citizens. Check the background of this firm on FINRAs COVID The G fund will not lose money its returns are guaranteed by the U.S. Government. browser. COLA TSP Transfers to G Fund Up 249% As Stock Values Decline - FedSmith Each of the TSPs lifecycle (L) funds, which shift toward more conservative investments as participants get closer to retirement, finished August in the red. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. TSP Monthly Recap: August 2022 - stwserve.com If you have enabled privacy controls on your browser (such as a plugin), we have see some advertising, regardless of your selection. The payment of G Fund principal and interest is guaranteed by the U.S. Government. by NiceUnparticularMan Fri Apr 08, 2022 12:04 pm, Post You may opt out of our use of such by White Coat Investor Tue Mar 02, 2021 6:55 pm, Post The latest monthly TSP meeting provided important updates on the problems that plagued the launch of the new TSP website. 5% of annual portfolio balance SWR, Proportional (to AA) withdrawals. Monthly returns from 2022 and year to date returns for 2022 and longer-term averages are shown below. Sign up for free TSP Fund price and performance updates via email. Aside from the war in Ukraine, there have been governments and economies showing troubling signs. traffic on our website. However, its always hard to say when the fall and rise will happen. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. That makes it very different from a typical bond fund, where your principal fluctuates with the rise and fall of interest rates. Data Breach by Weathering Fri Apr 08, 2022 9:13 pm, Post Official Time Having a disciplined investment strategy and sticking to it through good times and bad has been shown to produce long term investor success. Other than folks whose only retirement savings is the TSP or are income constrained or just hate fixed income. This table shows investor transfer action in the G, C, S, and L Funds over the past five months (note figures are in millions of dollars). You will still The Common Stock Index Investment (C) Fund. The G Fund is now the biggest amongst the five core TSP funds. able to use or see these sharing tools. With practically zero volatility. It is widely expected that the next rate hike will be either .50 or .75 basis points. Its year-to-date return is 1.61%, and its 1-year return is 3.69%. Medicare In June in was 1.65%, and 0.9% in May. If the September inflation data comes in high, it is likely they will raise rates by .75 points. Monthly returns from 2022 and year to date returns for 2022 and longer-term averages are shown below. -Jeff Spicoli. Focus on active risk management and capital preservation. OPM I will admit, I do not have a warm and fuzzy feeling about the state of the American economy, nor the global economy. FRTIB We do not know what the future holds. Taxes You can, however, obtain additional information about the underlying indexes that certain TSP funds track by visiting the following websites: Terms of Service You should discuss tax or legal matters with the appropriate professional. A cookie is a small piece of data (text file) that a website when visited by a 2023 FedSmith Inc. All rights reserved. (source, TSP.gov) Most investors would like some portion of their retirement account to be completely protected from loss, and the G Fund is the best investment option for this purpose. If you do not allow these cookies you may not be Official Time The objective is to strike an optimal balance between the expected risk and return associated with each fund. Latest TSP Fund Performance - Thrift Savings Plan returns - 2022 Latest Thrift Savings Plan (TSP) Returns: Monthly and Annual May 3, 2023 My Federal Retirement Thrift Savings Plan (TSP) Summary of Returns Below are the TSP fund performance figures for the G, F, C, S, I and L investment funds as calculated by the Thrift Savings Plan. **, ***The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. Earlier, my G Fund investments looked bad because returns were so low, but having a lot of G now, well, may help make up for that. I have access to a G Fund. to learn more. Proposed Legislation (source, TSP.gov). Employee Relations All TSP Funds Still Down in 2022: One Fund Down 19.40% - FedSmith The Fed Funds interest rate increased to 2.5%. The Fed anticipates more rate increases over the remainder of this year. intended if you do so. by Joe Public Mon Apr 04, 2022 4:23 pm, Post This is lower than the long term average of 0.37%. Prior to making an investment decision, please consult with your financial advisor about your individual situation. This article One TSP Fund was up 10.32% for the month but is still down for the year. Subscribe to our free email list to get our news updates in your inbox. Does anyone know exactly how they calculate the earnings based on these rates? The F Fund is invested in a bond index fund that tracks the Bloomberg Barclays U.S. (Prices are in millions.). The S Fund has greater volatility than the C Fund. jayk7/Getty Images. What is the current TSP G Fund interest rate? With total plan assets in excess of $743 billion, the data indicate that most TSP investors did not move their money as the market declined. STWS is owned and operated by Daniel Sipe and Tom Lee (the Financial Advisors). I know my exact balance on 4/1/2022, and I know how much it is going up everyday. Donald Trump non-personal) investing questions and issues, investing news, and theory. information. Obviously, as the stock market slide was becoming apparent, some TSP investors decided to halt their losses and move into the safety of the G Fund. Thank you for your service to our government! Click on the different category headings to find out more and change our Rights link. Securities offered through Raymond James Financial Services, Inc. Additionally, you may contact our legal Gosh this is complex! He has written extensively on a full range of human resources topics in books and newsletters and is a co-founder of two companies and several newsletters onfederal human resources. The G Fund rate for August 2022 dropped to 2.75%. Employee Relations All rights reserved. The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site.