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Thrift Savings Plan Sees Gains Across Most Funds in November

After experiencing a challenging October where many funds within the federal government’s 401(k)-style retirement savings plan saw declines, November brought a resurgence of growth across most portfolios. This positive shift reflects a rebound in market performance, particularly benefiting federal employees and retirees who utilize the Thrift Savings Plan (TSP).

Among the various investment options available to participants, only the I Fund, which focuses on international investments, registered a slight decrease of 0.01% last month. However, it still shows a respectable year-to-date growth of 7.30%.

Strong Performers in November

The standout performer among the TSP’s core funds was the S Fund, which is invested in small- and mid-cap stocks. The S Fund soared by 11.97% in November, marking a substantial overall increase of 25.80% since the start of the year. Similarly, the C Fund, representing common stocks, experienced a gain of 5.87% last month, bringing its impressive 2024 total return to 28.02%.

Fixed Income and Government Securities Funds

In the fixed-income segment, the F Fund managed a gain of 1.14% in November, pushing its total 2024 returns to 3.09%. On the other hand, the G Fund, composed of government securities, grew at its legally mandated rate of 0.36% last month, totaling a year-to-date return of 4.03%.

Lifecycle Funds Performance

All of the TSP’s Lifecycle (L) funds, which gradually transition to more conservative investments as participants approach retirement, also concluded November positively. The L Income Fund, aimed at those who have begun withdrawals, increased by 1.51%, while the L 2025 Fund rose by 1.66%. The upward trend continues across the different L funds with gains for L 2030 at 2.94%, L 2035 at 3.19%, L 2040 at 3.45%, L 2045 at 3.66%, L 2050 at 3.88%, L 2055 at 4.56%, L 2060 at 4.56%, L 2065 at 4.56%, and L 2070 at 4.54%.

Year-to-date performance highlights for these lifecycle funds show the L Income Fund growing by 8.09%. Other notable increases include the L 2030 Fund at 13.63%, L 2035 at 14.57%, L 2040 at 15.51%, L 2045 at 16.32%, and the L 2050 Fund at 17.14%. The L 2055, L 2060, and L 2065 funds are all experiencing significant growth at 20.05% each. However, the L 2070 Fund’s year-to-date figures are still pending, as it was only introduced last July.

Overall, the data indicates that TSP investors have reason for optimism following the recovery in November, suggesting a potential continuation of positive trends in the retirement savings landscape.

Source
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