Thrift Savings Plan Monthly Update for March 2024, by Jennifer Meyer, CFP®, ChFEBC℠, AIF®
Stocks continued to show signs of strength during the month despite indications from the Federal Reserve that they will not be cutting interest rates soon. Many Thrift Savings Plan participants have been moving funds from the G fund to the C fund of late. The S&P 500 has reached 22 all time highs so far in the first three months of the year. Quite a remarkable run for the index.
For the month of March, all three of the stock funds were up with the I fund slightly outperforming the C and S funds. 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 10%. For perspective, historically, the market returns about 10% on an annualized basis. To have this return happen over such a short time frame is again, quite remarkable. The G fund was the worst performer with a return of 0.38%. As I often remind my clients, the swings of the market are very unpredictable, research shows the most successful investors are not moving in and out of funds trying to “time” the short-term swings. I hear participants say repeatedly that they made mistakes based on emotional decisions, or lack of knowledge. It is incredibly difficult to fix mistakes as you get closer to retirement. Remember, it is Time IN the market, not TIMING the market!
Jen, What Does This All Mean?
Markets are forward looking, meaning that they move according to what is predicted to happen in the future. We know the future is unpredictable. The best money managers in the world cannot consistently time the market. In fact, I have not known of anyone in all my years that can time the market with consistent accuracy, which is why it is so important to stay disciplined to a good investment strategy. 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 March 31, 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 | 4.34% | 2.27% | 34.37% | 31.50% | 18.72% |
| 2024 YTD | 1.05% | -0.74% | 10.55% | 6.92% | 5.95% |
| 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 March 31, 2024. (source, TSP.gov).
| Year | G Fund | F Fund | C Fund | S Fund | I Fund |
| 1 year | 4.34% | 2.27% | 34.37% | 31.50% | 18.72% |
| 3 Year | 3.13% | -2.37% | 11.46% | 1.08% | 4.86% |
| 5 year | 2.43% | 0.41% | 15.16% | 10.18% | 7.80% |
| 10 year | 2.37% | 1.73% | 13.05% | 9.24% | 5.22% |
| 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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**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.***
