TSP Funds Positive in November
Investors can breathe a sigh of relief. TSP funds stayed in the positive for a second month in a row. The end of October saw a powerful upward surge in the TSP funds. While most of the Thrift Savings plans showed lower numbers at the end of November (compared to October), they stayed mostly in the positive.
Two TSP Funds Still Negative
Only two TSP funds ended the month with negative numbers. The F fund closed out November down .24 percent and the I-fund ended the month down .86 percent. While the month-end numbers were in the negative, the F fun (fixed income index) has a positive year-to-date posting and a positive 12-month posting.
The I fund (international stocks) showed a negative return of -2.64 percent over the last 12 months and a positive 1.55 percent year-to-date posting. The L fund has been of particular importance over the last several months as new federal employees will automatically contribute to this fund for instead of the government backed G-fund, unless they specifically request to contribute elsewhere. The new changes went into effect in September with the goal of helping diversify investments.
The L-Fund was up .17 percent in November and had a positive 2.13 percent year-to-date posting as well as a posting of a positive 2.09 percent for year to date.
While stock market returns have been disappointing over the last several months, the C fund has had relative success compared to the others. With a 3.08 percent return, it ranks higher than most other funds, though much lower than averages between 2012 and 2014. The S funds took the lead in November with an increase of 1.75 percent.
Federal Employees Shifting Money to Safer Funds
Unstable prices and values have encouraged federal employees and federal retirees to shift their money to other funds. This shift included the transfer of some $200 million into the G fund, $81 million to the F fund and $265 million to the L Funds.
In addition, most FERS employees maintain a TSP balance as well as a ROTH IRA balance. The number of federal employees with both a TSP balance and a Roth IRA is rising about 2 percent each month, with some $3.5 billion in assets coming from Roth IRAs. TSP investments are on the rise, with numbers up by over $460 million in October.
Only 5 percent of all TSP investments are in the I and F funds. With the G fund plays host to 36 percent and the C fund has 27 percent.
December, December
TSP funds investors are looking forward to December with mixed feelings. The S&P has had an average return of 1.59 percent in December for the last 60+ years. Despite increases over the last few months, financial experts do not expect any major increases in the funds through the rest of the year.
Subsequently, most financial experts suggest that federal investors may be let down by the stock investments for the year, mainly due to higher expectations. Many will be disappointed by the positive performance of the C TSP fund because it has performed far below levels seen in the last several years.
