TSP Update for Month Ending July 2023: only F fund posts small negative return while the others see a little growth.
Hello again readers! On the good news front, during July, the current stock market rally continued. On the bad news front, there continues to be a high level of uncertainty as to what the remainder of the year will bring. There is some speculation that the bottom of the current bear market could have been in October 2022.
An unexpected strong start to the first half of 2023 shows once again that patience and discipline in investing generally results in long term success. The Federal Reserve announced another .25 basis point rate hike at the end of July and continued to emphasize their data dependence regarding additional rate increases. They will be paying close attention to upcoming inflation and unemployment numbers as they consider future rate hikes. Thus far, they have been able to bring inflation down from the peak in 2022 without causing much disruption to the overall economy. However, I continue to emphasize to my clients that time in the market is a much more important factor in your investment success than your ability to time the markets ups and downs.
In July, the S fund was the best performer for the second straight month. All three stock funds have posted double digit returns on both a year to date and last 12 months basis. The two bond funds, G and F, are both positive year-to-date, but significantly trail the stock funds on both a year to date and last 12 months basis.
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 here.
Monthly and year to date returns effective July 31, 2023, and longer-term averages are shown below. (source, TSP.gov)
| Year | G Fund | F Fund | C Fund | S Fund | I Fund |
| Last 12 months | 3.84% | -3.33% | 12.96% | 10.63% | 16.43% |
| 2023 YTD | 2.26% | 2.18% | 20.62% | 19.30% | 15.32% |
| 2023 Monthly | |||||
| July | 0.34% | -0.07% | 3.21% | 5.91% | 2.82% |
| June | 0.32% | -0.36% | 6.61% | 8.31% | 4.57% |
| May | 0.31% | -1.10% | 0.43% | 0.44% | -4.01% |
| April | 0.30% | 0.61% | 1.56% | -2.18% | 2.87% |
| March | 0.35% | 2.55% | 3.67% | -2.90% | 3.11% |
| February | 0.28% | -2.58% | -2.44% | -1.63% | -2.84% |
| January | 0.34% | 3.25% | 6.28% | 10.82% | 8.43% |
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.
| Year | G Fund | F Fund | C Fund | S Fund | I Fund |
| 1 year | 3.84% | -3.33% | 12.96% | 10.63% | 16.43% |
| 3 Year | 2.31% | -4.30% | 13.69% | 9.43% | 9.55% |
| 5 year | 2.22% | 0.84% | 12.16% | 7.02% | 4.88% |
| 10 year | 2.22% | 1.73% | 12.66% | 9.32% | 5.55% |
| 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!
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**Written by Jennifer Meyer, Financial Planner. 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.***
