TSP funds round out 2012 with modest gains

Nearly every fund in the Thrift Savings Plan experienced modest gains in December.

The I Fund, which invests in international stocks, continued to be the strongest performer, rising 4.02 percent in December and 18.62 percent for 2012. The F Fund, invested in fixed income bonds, was the only plan to lose ground, falling 0.13 percent. It still was up 4.29 percent for the year.

The G Fund, which invests in government securities, inched up 0.12 percent in December and was the weakest performer of 2012, gaining just 1.47 percent for the year. Treasury Secretary Timothy Geithner recently announced the government has temporarily suspended investments into the fund as part of its “extraordinary measures” to give the United States more time before it defaults on its debts. But the board that manages the retirement plan has reassured investors that this move is not expected to affect enrollees.

The S Fund, which is invested in small and midsize companies and tracks the Dow Jones Wilshire 4500 Index, gained 2.69 percent in December and finished 2012 up 18.57 percent. That put it just behind the I Fund.

Common stocks on Standard & Poor’s 500 Index in the C Fund grew 0.91 percent last month and finished up 16.07 percent for the year.

All of TSP’s five life-cycle funds, designed to move investors to less risky portfolios as they near retirement, finished December in the black and improved on November’s returns.

The L Income Fund, for employees who already have started withdrawing money from their TSP accounts, rose 0.47 percent; L 2020 was up 1.19 percent last month; L 2030 gained 1.48 percent; L 2040 posted a positive return of 1.69 percent; and L 2050 increased 1.93 percent.

In 2012, L Income gained 4.77 percent; L 2020 increased 10.42 percent; L 2030 rose 12.61 percent; L 2040 grew 14.27 percent; and L 2050 gained 15.85 percent.

(Image via Kenishirotie/Shutterstock.com)