TSP Update for Month Ending June 2023: C and I fund have each grown almost 20% over previous 12 months.
The last twelve months has certainly been a wild ride for TSP participants. 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. For the month of June, all three of the stock funds (C, S, and I funds) posted their best performance since January 2023, and all have double digit gains over the last twelve months. Quite remarkable given the doom and gloom that many predicted at the start of 2023. The Federal Reserve did not raise interest rates at their June meeting, marking the first time since early 2022 that they opted to not raise rates. The central bank did note that this is simply a pause and that more rate increases are to be expected over the remainder of 2023. Market watchers will likely continue to make predictions on the potential outcomes for the second half of 2023. 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 June, the C fund posted its best monthly performance of the year to date at 6.61%. 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, with the F fund slightly outperforming the G fund.
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 June 30, 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 | 3.76% | -0.87% | 19.54% | 15.24% | 19.08% |
| 2023 YTD | 1.91% | 2.25% | 16.88% | 12.64% | 12.16% |
| 2023 Monthly | |||||
| 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.
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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.***
