January a tough month for TSP returns

The three riskier funds in the Thrift Savings Plan funds experienced significant setbacks in January.

The international investments represented in the 401(k)-style federal employee retirement plan's I Fund experienced the most losses for the month, falling 8.52 percent. But the fund experienced 12-month returns of 0.62 percent.

The S Fund, which invests in small- and mid-sized companies by tracking the Dow Jones Wilshire 4500 Index, dropped 6.27 percent in January. The fund also posted losses of 4.13 percent for the year.

The C Fund, composed of common stocks on the Standard & Poor's 500 Index of the largest domestic companies, fell 5.98 percent. It has dropped a total of 2.26 percent over the past 12 months.

The F Fund, which invests in fixed-income bonds, posted the largest gains for January, growing 1.76 percent. The fund also posted the biggest long-term gains, earning 8.98 percent over 12 months.

The G Fund, which is made up of short-term Treasury securities specially issued to provide a higher return than inflation without any serious risk from market fluctuations, grew 0.33 percent last month. Its 12-month gains were 4.76 percent.

The TSP also has life-cycle (L) options, which are a blend of the five basic funds that automatically grows more conservative as investors near retirement.

All of the five L Funds experienced losses for January.

L 2040, intended for employees with a target retirement date around the year 2040, dropped 5.37 percent; L 2030 fell 4.71 percent; L 2020 lost 3.90 percent; and L 2010 went down 2.07 percent. The L Income Fund, designed for employees with planned retirements in the very near future, lost 0.97 percent in January.

All the L funds posted gains for the year, however. The L 2040 Fund experienced the slowest long-term growth, coming in at 0.06 percent over 12 months. L 2030 grew 0.67 percent in that time, L 2020 gained 1.46 percent, L 2010 earned 3.27 percent and L Income made 3.89 percent.