TSP Has a Bleak December

All but one of the funds in the Thrift Savings Plan ended 2015 in the red, according to the latest numbers from the Federal Retirement Thrift Investment Board.

The steady G Fund, invested in government securities, increased 0.18 percent in December, while all the other TSP offerings decreased last month. The S Fund, invested in small and midsize companies, took the biggest tumble, falling 3.91 percent in December. International stocks dropped 2.03 percent, while the C Fund (common stocks) declined 1.57 percent. Fixed income bonds (F Fund) fell 0.30 percent.

TSP returns for the year to date in December were a mixed bag: The G, F, and C funds all grew slightly – 2.04 percent, 0.91 percent, and 1.46 percent, respectively. The S and I funds both decreased in 2015 -- 2.92 percent and 0.51 percent, respectively.

The lifecycle offerings – which move investors to less risky portfolios as they near retirement – all posted negative returns in December. L Income, for people who have already started withdrawing money, was down 0.28 percent; L 2020 decreased 0.92 percent; L 2030 fell 1.32 percent; L 2040, 1.61 percent; and L 2050, 1.85 percent.

The L Fund returns for 2015 were all in the black. L Income was up by 1.85 percent; L 2020, 1.35 percent; L 2030, 1.04 percent; L 2040, 0.73 percent; and L 2050, 0.45 percent. 

(Image via kuruneko / Shutterstock.com)