Every TSP fund is down for the year with the exception of the G Fund which is up 1.60%. Labor Relations **, ***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. MSPB Rights link. IRS The international stocks in the I Fund saw the worst performance of the TSPs core funds, falling 5.79% in August. President Biden has issued the letter outlining his alternative pay plan of a 4.6% average increase for the 2023 federal pay raise. FLRA There will be an inflation update on September 13 which will be very important in the decision the Federal Reserve will make at the end of September regarding the size of their next rate hike. All rights reserved. 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%. Donald Trump TSP Planning Report August 2022 - Stephen Zelcer If you have any questions, feel free to contact me. Focus on active risk management and capital preservation. Presumably, this means these investors are gaining confidence the stock markets slide will reverse and stocks will continue to go up. Copyright 2007-2023 My Federal Retirement. 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. It's Official: Biden Formalizes Average 4.6% Pay Raise Plan for Feds in 2023, Do Not Sell My by rkhusky Fri Apr 08, 2022 3:40 pm, Post by RJC Tue Apr 06, 2021 8:34 pm, Post If you opt out we will not be able to offer you personalised ads and See all TSP funds A description of each of the TSP funds is here. Unions to learn more. Medicare Email me here stephen@stephenzelcer.com, A fiduciary advisor specializing in retirement planning and federal benefits, Stephen Zelcer 2023 All rights reserved. Hiring - Thich Nhat Hanh. Financial Planning Resources for Federal & Postal Employees. Thank you for your service to our government! In the very long run, this has worked out to be a good deal: the G Fund has earned a compound annualized return of 4.2% since August 1990. information by using this toggle switch. All rights reserved. Despite the strong July across financial markets, the G Fund remains the only TSP fund to post a positive return in 2022, gaining 1.41%. 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. Your newTSPcontributions should go 70% C fund, 30% S fund to catch a bounce-back. COLA 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. Social Security IRA Securities offered through Raymond James Financial Services, Inc. by AnnetteLouisan Sat Apr 09, 2022 10:05 am, Post 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%. of the site will not work as intended if you do so. Weighted ER< .10%. You may opt out of our use of such Holidays To put this in perspective, this is about the highest inflation rate in 40 years. We also The international stock index I fund took the biggest hit in May at -4.01%. G, C, S funds show tiny returns in May, all others in the red 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. It was 3% in July. You should discuss tax or legal matters with the appropriate professional. The chart below shows the historical performance of the TSP G Fund, and is updated every business day with the latest TSP G Fund price: The G Fund has earned a compound annualized return of 4.2% since August 1990. Thank you for your service to our government! Data Breach Here are the results. Prior to making an investment decision, please consult with your financial advisor about your individual situation. This months reading came in at 52, compared to Julys 53, and Junes 56.1. 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. by bsteiner Fri Apr 08, 2022 2:57 pm, Post We also share information about your use of our site with our social media, advertising and analytics partners. 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. Unions Other than folks whose only retirement savings is the TSP or are income constrained or just hate fixed income. The G Fund is up 1.15% so far in 2022. (source, TSP.gov) 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. Is this a better idea than total bond in this environment? Additionally, you may contact our legal How to Change Your TSP Investments | The Thrift Savings Plan (TSP) Inflation Unusual things to know about retiring December 31st 2022, In parts of Europe, energy prices have increased 1,000%. After positive July, August returns dip back into negative territory for all core funds except G. Well, the market rebound of July 2022 was short lived. See this months recommended portfolios. 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%. AFGE Historical Annuity Rates | The Thrift Savings Plan (TSP) For example: Protests of government over-reach have sprung up in Sri Lanka and the Netherlands. The .gov means its official. by NiceUnparticularMan Fri Apr 08, 2022 2:09 pm, Post This is a broad international market index, made up of primarily large companies in 22 developed countries. by White Coat Investor Tue Mar 02, 2021 6:55 pm, Post Federal government agencies, including the SEC, do not endorse or sponsor particular securities, issuers, products, services, professional credentials, firms, or individuals. However, for higher yields you will still need stock exposure. It is widely expected that the next rate hike will be either .50 or .75 basis points. by Geronkas Mon Apr 04, 2022 5:21 pm, Post Nearly every portfolio in the TSP posted negative returns again in August. As a result of continuing inflation, the stock market is still going down. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. 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. The next Federal Reserve meeting is not scheduled until the end of September. 2023 Thrift Savings Plan Maximum Contribution Limits, 10 Thrift Savings Plan Mistakes Federal Employees Should Avoid, Why Every Federal Employee Needs An Estate Plan, What You Should Know When Amending a Federal Income Tax Return, Bloomberg Barclays U.S. 2023 by Government Media Executive Group LLC. 2023 FedSmith Inc. All rights reserved. The chart below shows the historical performance of the TSP G Fund, and is updated every business day with the latest TSP G Fund price: The G Fund is invested in short-term U.S. Treasury securities specially issued to the Thrift Savings Plan. This allows us to lock in a safe investment return while the investment model waits for bullish market conditions to return. (source, TSP.gov). by NiceUnparticularMan Fri Apr 08, 2022 10:28 pm, Post Cookies Policy. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. The more aggressive Lifecycle Funds are down more than 20% so far in 2022. Proposed Legislation The most precious gift we can offer anyone is our attention. All rights reserved. non-personal) investing questions and issues, investing news, and theory. Things to Consider Before Moving Money Into TSP's G Fund Should FEHB Enrollees Reconsider Medicare Part D? browsers and GEMG properties, your selection will take effect only on this browser, this device and this Completion Total Stock Market (TSM) Index. can choose not to allow certain types of cookies, which may impact your experience of the site and the Taxes by FedGuy Fri Mar 05, 2021 8:30 pm, Post We do not know what the future holds. The latest monthly TSP meeting provided important updates on the problems that plagued the launch of the new TSP website. The Common Stock Index Investment (C) Fund. After positive July, August returns dip back into negative territory for all core funds except G. Well, the market rebound of July 2022 was short lived. Ah, yes, inflation: one of the greatest risks to bond investors. But the point is, my decade plus of G fund folly is morphing into a stealth win now. cookie banner and remembering your settings, to log into your account, to redirect you when you log out, The L 2025 fund is down 6.31% and the L 2030 Fund is down 2.84%. Fraud Conviction: Leaving TSP to Invest in Variable Annuity With $1.7 Million in Commissions, July is Best Month for TSP Performance Since Trump Administration: One Fund Up 10.32%. These cookies are not used in a way that constitutes a sale of Rapid inflation hurts everyone. Thrift Savings Plan G Fund Monthly Returns - YCharts I agree to the use of my personal data by Government Executive Media Group and its partners to serve me targeted ads. Social Security This may impact the No doubt, all of us will be seeing the political ads dominating the airwaves in the coming weeks to convince voters new legislation and more government money is paving the way for prosperity again. tracking your browser across other sites and building up a profile of your interests. by delamer Wed Apr 07, 2021 9:33 am, Post 2023 Ralph R. Smith. Government Shutdown If you are unsure how to create an investment strategy that you can stick to, there are many resources available to you via Serving Those Who Serve. by AnnetteLouisan Sat Apr 09, 2022 11:35 am, Post Performance figures for the month of August 2022 have been posted on the TSP website. Continuing uncertainty around high inflation and rising interest rates is the main culprit of the current market downturn. FERS Major employers have announced massive layoffs. So far in 2022, there has been a change in how TSP investors are allocating their investment funds. Total expense ratio This month's unemployment rate dropped slightly to 3.5%, from 3.6%. Whistleblower. Although inflation data has shown signs of slowing, the rhetoric from the Federal Reserve indicating they will not stop raising rates until inflation returns to is pre-pandemic rates of about 2% annually continues to create skittishness for market participants. There will be an inflation update on September 13 which will be very important in the decision the Federal Reserve will make at the end of September regarding the size of their next rate hike. The fixed income index F fund and the S fund are still the only two funds in the red over the last 12 months. by TimeRunner Fri Apr 08, 2022 3:05 pm, Post Based on my calculation I am earning at an annualized rate of 2.389% in April, not at 2.5%. COLA $0.570/$1,000 account balance 0.057% (5.7 basis points), Investment expense ratio1 Links are being provided for information purposes only. You can, however, obtain additional information about the underlying indexes that certain TSP funds track by visiting the following websites: Terms of Service Although August started out with some continued momentum, by mid-month the momentum was turning, and the month ended on a decidedly negative note. Monthly returns from 2022 and year to date returns for 2022 and longer-term averages are shown below. That is normally not a great return, but it is the only TSP fund with a positive return in 2022. by finite_difference Fri Apr 08, 2022 9:32 pm, Post The international stocks in the I Fund saw the worst performance of the TSP's core funds, falling 5.79% in August. Roth The F Fund is invested in a bond index fund that tracks the Bloomberg Barclays U.S. The next Federal Reserve meeting is not scheduled until the end of September. The C Fund was up 9.22% and the S Fund was up 10.32% in July. PMI (Purchasing Managers Index) continued to expand (any reading above a score of 50 means expansion), although slower than in previous months. Whistleblower. With practically zero volatility. The Fed Funds interest rate increased to 2.5%. See, On a global level, the U.N. recently announced the world is heading toward global destabilization, starvation and mass migration on an unprecedented scale. See. The others are July, January, September, April, November, May, March, June, December, August and February.". Some TSP investors were feeling more positive at the end of July. "October: This is one of the peculiarly dangerous months to speculate in stocks. Please note that not all of the investments and services mentioned are available in every state. In June in was 1.65%, and 0.9% in May. Locality Pay The cost of electricity is up. Focus on active risk management and capital preservation. Federal employees have just received news that they are going to get the highest pay raise in 20 years. Following are longer term rates of return for each fund, as of August 31, 2022. July 2022 provided Thrift Savings Plan (TSP) investors with the best month of returns since the Trump Administration. by AnnetteLouisan Sat Apr 09, 2022 10:21 am, Post | "All I need are some tasty waves, a cool buzz, and I'm fine." content and messages you see on other websites you visit. **Written by Jennifer Meyer, Financial Planner. by White Coat Investor Tue Apr 06, 2021 11:58 pm, Post Interest rates are rising. The G Fund Yield AdvantageThe G Fund rate calculation results in a long-term rate being earned on short-term securities. Consider investing in the G Fund if you would like to have all or a portion of your TSP account completely protected from loss. Please reach out to us with questions and follow our website for the most recent updates. Inflation is a major factor in falling stock prices. 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. by Weathering Fri Apr 08, 2022 9:13 pm, Post That's not a small feat as the C Fund - the next. You may exercise your right to opt out of the sale of personal These cookies are not used in a way that constitutes a sale of your data under the CCPA. OPM Due to historically unprecedented Fed stimulus and low interest rates, the TSP G Fund no longer outpaces inflation as of 2020. $0.570/$1,000 account balance 0.057% (5.7 basis points), Benchmark index AFGE MSPB And the common stocks of the C Fund lost 4.08% last month, bringing its 2022 performance down to -16.15%. And because long-term interest rates are generally higher than short-term rates, the G Fund should earn more than your average "safe" investment like U.S. T-Bills or a money market fund. The S Funds small- and mid-size businesses finished August 2.08% in the red, bringing its losses since January up to 22.14%.
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