Thrift Savings Plan Monthly Update for April 2024, by Jennifer Meyer, CFP®, ChFEBC℠, AIF®
Stocks took a breather in April after a remarkable five month run beginning in November 2023. Four of the five core funds were negative for the month ended April 30, 2024. The only fund with a positive return was the G fund, which is the only fund that is not subject to market volatility at any level. Although the G fund is stable in terms of not having the risk of losing money, it also does not generally keep up with inflation over long periods of time, which is a different type of risk for TSP participants.
For the month of April, the S fund was the worst performer, losing over 6% for the month. Year to date, the C fund continues to be the best performer of the 5 core funds, with a year-to-date return of over 6%. Looking back over the last 12 months, both the C and S funds returned over 20%, an exceptional 12 month return for each.
So What Is Next?
At the time of this writing, the monthly unemployment numbers for April have just been released with a mild increase in unemployment. This should be good news for markets as it will keep the conversation of an interest rate cut on the table for later this year. You will recall that much of the late 2023 and early 2024 market rally has been attributed to the hope that the Federal Reserve will cut rates this year. Time will tell if we see a rebound from the poor April performance as we head into the middle of the year. Concern regarding geopolitical risks as well as the upcoming election are bound to create some short-term volatility; however, TSP participants are reminded again that it is virtually impossible to successfully time the market consistently. Research has shown it is most important to have a disciplined investment strategy that you can stick to regardless of market volatility.
We offer a monthly TSP webinar and complimentary consultations to help federal employees develop a strategy they can stick to through the ups and downs of market cycles. Please take advantage of the resources available to you. Our webinars are free so there is no excuse! The successful management of your TSP will have a huge impact on your retirement. If you have neglected it in the past, make it a priority to educate yourself sooner rather than later!
If you have questions on how to best manage your TSP, please schedule a complimentary meeting or attend a TSP webinar. You can find the schedule by clicking here. You can also schedule a complimentary consultation with me using this link.
Monthly and year to date returns effective April 30, 2024, and longer-term averages are shown below. (source, TSP.gov)
| Year | G Fund | F Fund | C Fund | S Fund | I Fund |
| Last 12 months | 4.36% | -1.50% | 22.62% | 21.03% | 8.69% |
| 2024 YTD | 1.41% | -3.20% | 6.03% | 0.01% | 2.60% |
| April | 0.35% | -2.47% | -4.08% | -6.46% | -3.17% |
| March | 0.38% | 0.87% | 3.22% | 3.33% | 3.36% |
| February | 0.33% | -1.41% | 5.34% | 6.03% | 2.74% |
| Jan 2024 | 0.34% | -0.19% | 1.68% | -2.41% | -0.22% |
Month to month trends as shown above are interesting, but it is important to remember that short term market volatility is to be expected and employees should not be making investment decisions based on short term performance. Following are longer term rates of return for each fund, as of April 30, 2024. (source, TSP.gov).
| Year | G Fund | F Fund | C Fund | S Fund | I Fund |
| 1 year | 4.36% | -1.50% | 22.62% | 21.03% | 8.69% |
| 3 Year | 3.20% | -3.42% | 8.04% | -2.57% | 2.96% |
| 5 year | 2.46% | -0.08% | 13.15% | 7.83% | 6.37% |
| 10 year | 2.38% | 1.39% | 12.40% | 8.62% | 4.66% |
| Inception Date | 4/1/1987 | 1/29/1988 | 1/29/1988 | 5/1/2001 | 5/1/2001 |
Please reach out to us with questions and follow our website for the most recent updates. We are here to serve you! Thank you for your service to our government!
Until next month,
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Jennifer Meyer, CFP®, ChFEBC℠, AIF®
A seasoned financial advisor, Jen is renowned for her expertise in federal benefits and financial planning for feds. Jen’s nearly 30-year industry background coupled with her CERTIFIED FINANCIAL PLANNER™ and Chartered Federal Employee Benefits Consultant℠ designations empower her to guide clients confidently on the path to financial independence. Growing up in a family of federal employees, she’s incredibly proud to serve the federal community. Known for her empathetic approach and deep understanding of economic impacts on planning, Jen is dedicated to her clients’ financial prosperity.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
**Written by Jennifer Meyer, CFP®, ChFEBC℠, AIF®,. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Jennifer Meyer and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
***The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will depend on how much you (and your agency or service, if you're eligible to receive agency or service contributions) put into your account during your working years and the earnings accumulated over that time. The Federal Retirement Thrift Investment Board (FRTIB) administers the TSP.***
