TSP Portfolios End 2020 on a High Note

At the end of a rocky year in financial markets, the federal government’s 401(k)-style retirement savings program surged in December, with all of its portfolios posting gains to finish 2020.

The small- and mid-size businesses of the Thrift Savings Plan’s S Fund led the way, increasing 7.24% last month. In 2020, the S Fund gained 31.85% in value. The international (I) Fund grew 4.64% in December, bringing its 2020 performance to 8.17% in the black.

The common stocks of the C Fund increased 3.84% in December. In 2020, the C Fund gained 18.31%.

The fixed income (F) Fund grew 0.14% last month, bringing its 2020 performance to 7.50%. And the G Fund, which is made up of government securities, increased 0.07% in December. Last year, the G Fund grew 0.97%.

All of the TSP’s L funds, which shift to more stable investments as participants get closer to retirement, gained value last month. The L Income Fund, for those who already have begun making withdrawals, increased 1.07%; L 2025, 2.27%; L 2030, 2.79%; L 2035, 3.06%; L 2040, 3.34%; L 2045, 3.59%; L 2050, 3.83%; L 2055, 4.63%; L 2060, 4.63%; and L 2065, 4.63%.

In 2020, the L Income Fund gained 5.15%; L 2030, 11.26%; L 2040, 13.16%; and L 2050, 14.79%. Yearlong performance statistics are not yet available for the remaining L funds, which were established in July.