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Three TSP funds lose value in July
Three of the Thrift Savings Plan's funds--C, S and the I--lost value in July, according to figures released this week by the Federal Retirement Thrift Investment Board.
The funds took their largest monthly hits of the past year, but all three are still significantly more valuable than they were 12 months ago. Investors in the TSP, a 401(k)-style retirement plan for federal employees, can invest in five funds. The Thrift plan has more than 3.2 million participants and $135 billion in assets.
The two other Thrift choices, the G Fund and the F Fund, gained value in July. Over the past year, only April saw more funds lose value in one month. In April, every fund except the G Fund dropped by at least 1.5 percent.
The G Fund, which is invested in government securities, continued its steady pattern of growth. It had a 0.4 percent return in July and a 4.4 percent return over the past year.
The F Fund, which is comprised of fixed-income bonds, also gained value - growing by 1 percent in July for a 4.9 percent return over the past 12 months.
The C Fund, which consists of common stocks, fell in July after two straight months of gains. The fund dropped 3.2 percent, but is up 13.1 percent over the past year. The sharpest monthly drop the C Fund has seen during that time was 1.5 percent in both April and May.
The I Fund, which invests in international stocks, lost 3.8 percent in July. The fund has experienced the largest jump over the past year, however, growing by 24.5 percent. The I Fund has gained value in 10 of the past 12 months. The only other losing month was April, when the I Fund dropped 2.3 percent.
The S Fund, which invests in the stock of small and mid-size companies, saw the most significant losses in July - dropping 5.5 percent. The fund is still up 13.1 percent since last August. The S Fund also easily outpaced its previous largest monthly drop for the past year, a 3.9 percent fall in April.
For an index of the performance of the S, C and I funds that is updated each business day, see the TSP Ticker on the front page of GovExec.com.
COMMENTS
- Ever heard of the value of compounding interest? You are deferring the tax and also increasing the value exponentially. Pre-tax investing is the best way to invest. J.A.G. Posted January 7, 2005 2:59 PM
- If you are unhappy about the way the Thrift Savings Plan is being administered... vote with your hard earned dollars. If you are a FERS participant, contribute only enough to get your agency's matching funds. Any excess money you have to contribute should go into your own ROTH IRA PLAN. Your tax advisor will tell you why. If you are a CSRS participant, you should ask yourself why you are contributing at all. You are not saving taxes but rather deferring taxes to a later date. Do you know what the tax rates will be when you retire? (No one knows for sure...) Do you know what other income you will have when you retire? Will a portion of your Social Security be taxed because of your FERS Retirement combined with your TSP disbursements and your Social Security Benefits? Have you thought of this? See your tax advisor. If you are CSRS participant you are deferring taxes not necessarily saving taxes. Instead of the Thrift Savings Plan, you should consider a ROTH IRA and perhaps a Tax Deferred Anuity. Isn't that correct, Mr. Amelio? See a good tax advisor ... it is money well spent. I bet Mr. Amelio has a Roth IRA. GovExec.com reader Posted August 12, 2004 7:29 PM
- People lost money in the TSP. Mr. Amelio must be happy, he wants you to put your money in those losing funds. Stay out of the G fund, you always make money there. It is not big money but it is always positive. Mr. Amelio will be wanting to get rid of the G fund as soon as he can. Still want him fired. GovExec.com reader Posted August 9, 2004 6:41 AM
