TSP Update for Month Ending March 2023- only the S fund sees negative month while I and C funds both grew over 7%!
After a significant rise in January, and subsequent decline in February, March brought a bit of stability to the markets. This is welcome news after a highly volatile last 12 months in the market. Of course, the ultimate question of the day is, is this a sustainable trend or will we return to market volatility in the coming quarter? The answer is highly dependent on upcoming data on inflation and employment. In addition, uncertainty about the banking sector will weigh on the markets following the collapse of Silicon Valley and Signature Banks. Bottom line, it is impossible to predict what will happen in the next quarter, but I do know that trying to time the market is a recipe for failure. If you are unsure what to do with your TSP – please reach out to us!
On an administrative note, for participants eager to review their first quarter statements, TSP has posted an update to their website noting that first quarter statements will be available by the end of April.
Serving Those Who Serve hosts a monthly webinar focused on TSP. I cannot emphasize enough how important it is to understand your TSP and learn how to make the most of it during your working years. I am often told by clients that they did not know for years, even decades, how to maximize their TSP. Please be proactive in understanding this critically important part of your benefits package. Unsure where to start? I suggest attending an upcoming TSP webinar. Here is the link to register.
Monthly and year to date returns effective March 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 | 3.52% | -4.56% | -7.76% | -14.00% | 0.28% |
| 2023 YTD | 0.97% | 3.14% | 7.49% | 5.85% | 8.63% |
| 2023 Monthly | |||||
| 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. Following are longer term rates of return for each fund, as of March 31, 2023. (source, TSP.gov).
| Year | G Fund | F Fund | C Fund | S Fund | I Fund |
| 1 year | 3.52% | -4.56% | -7.76% | -14.00% | 0.28% |
| 3 Year | 1.96% | -2.61% | 18.58% | 17.22% | 13.39% |
| 5 year | 2.16% | 1.02% | 11.15% | 6.07% | 3.85% |
| 10 year | 2.14% | 1.61% | 12.25% | 9.00% | 5.38% |
| 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.***
