For the third time in 2024, all 5 of the core funds in TSP posted monthly gains in July. In addition, all five funds are positive on a year to date and last 12 months basis. However, the tide has turned quickly. As of this writing, the market having a rough start to the month of August. Time will tell how the month will play out, but as is always the case, it is best to not overreact to short-term market trends. I have a vision of thousands of TSP participants sitting at their desks today and moving to the G fund based on the news of the day. Please resist the urge- this is called market timing and is nearly impossible to execute consistently. Research shows that investors who ride out the ups and downs tend to outperform market timers over the long haul.
The S fund was the best performer for the month of July, gaining over 6% for the month. Quite an impressive return for such a short time period. In fact, no other fund has had a monthly return over 6 percent so far year to date. The C fund, which has been a TSP participant favorite for quite a while, significantly trailed the S fund for the month, returning 1.21% for the month. Speculation regarding future interest rate cuts continues to dominate market watcher’s conversations. The two bond funds in TSP are the G fund and the F fund. Interestingly, year to date, the F fund performance trails the G fund. However, on a 12-month basis, the F fund is outperforming the G fund. Once again, these short-term market moves illustrate the importance of having an appropriate asset allocation for your TSP.
To that end, 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 here: https://stwserve.com/webinars-and-seminars/webinars-for-federal-employees/.
You can also schedule a complimentary consultation with me using this link, https://calendly.com/jennifer-meyer-2/part-2a-jennifer.
Monthly and year to date returns effective July 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 | 4.57% | 5.07% | 22.11% | 15.22% | 11.77% |
| 2024 YTD | 2.61% | 1.69% | 16.67% | 9.71% | 8.87% |
| July | 0.39% | 2.33% | 1.21% | 6.23% | 2.86% |
| June | 0.38% | 0.94% | 3.58% | -0.10% | -1.62% |
| May | 0.41% | 1.69% | 4.96% | 3.36% | 4.86% |
| 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 July 31, 2024. (source, TSP.gov).
| Year | G Fund | F Fund | C Fund | S Fund | I Fund |
| 1 year | 4.57% | 5.07% | 22.11% | 15.22% | 11.77% |
| 3 Year | 3.47% | -2.54% | 9.57% | -0.01% | 4.04% |
| 5 year | 2.58% | 0.26% | 14.95% | 9.63% | 7.89% |
| 10 year | 2.44% | 1.77% | 13.14% | 9.48% | 5.21% |
| 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.***
