When you visit our website, we store cookies on your browser to collect We are here to serve you! It was established by Congress in the Federal Employees' Retirement System Act of 1986 and offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans. to learn more. It was established by Congress in the Federal Employees' Retirement System Act of 1986 and offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans. It was still close to where the index was in January 1964. MSPB My general advice is to give it time. CSRS You Labor Relations Dr. Fauci Advises Young Scientists to Stay out of Politics, Stories of the Public Service Loan Forgiveness Program, I Am Against Retreat: The Louis DeJoy Ethos and the Future of the Postal Service, GovExec eBook: How The Federal Government Plans To Better Serve Citizens. The others are July, January, September, April, November, May, March, June, December, August and February.". (source, TSP.gov) 2023 Federal Pay Raise Update: Biggest Increase in 20 Years, Five Important Facts to Remember About FEGLI, Survey Shows Most Americans Underestimate Their Social Security Income, 2024 Federal Pay Raise Update: Union Pushes for RAISE Act, The Fed15 Podcast: A Look at Health Benefits for Federal Employees, New RMD Rules for Non-Spousal Beneficiaries of Inherited IRAs (Part III), Understanding Your Federal Retirement Benefits: FERS. The G Fund is subject to the possibility that your investment will not grow enough to offset the reduction in purchasing power that results from inflation (inflation risk). Neither Raymond James, the Financial Advisors, STWS, nor Mr. Zurndorfer are affiliated with, endorsed by, or authorized to speak on behalf of the U.S. Government, the Federal Employee Retirement System, or any other Federal Government-sponsored benefits programs or retirement plans, including the Thrift Savings Plan (collectively, Federal Benefits Plans). I have access to a G Fund. Hatch Act Awesome! Employee Relations The C Fund was up 9.22% and the S Fund was up 10.32% in July. by NiceUnparticularMan Fri Apr 08, 2022 10:24 am, Post One analyst recently wrote we are back to extreme levels of bullish optimism. In 1982, taxes had been cut, interest rates were going down and some optimists thought personal computers looked as though they may have a future in American homes. sale of your personal information to third parties. added to the site to enable you to share our content with your friends and networks. Following are longer term rates of return for each fund, as of August 31, 2022. While there is room for optimism in some quarters, those expecting a huge gain in stocks in the near future may not recall (or have been alive or certainly not investing in stocks) in the years preceding 1982 when many or most investors just gave up on stocks. Subscribe to our free email list to get our news updates in your inbox. Thus, there is no credit risk.. It offers you the opportunity to earn potentially higher investment returns that are associated with small cap investments. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. The L Funds, or Lifecycle funds, use professionally determined investment mixes that are tailored to meet investment objectives based on various time horizons. Rapid inflation hurts everyone. The G Fund rate for August 2022 dropped to 2.75%. It gives you the opportunity to earn rates of interest similar to those of long-term Government securities with no risk of loss of principal. We are here to serve you! After positive July, August returns dip back into negative territory for all core funds except G. Well, the market rebound of July 2022 was short lived. Total expense ratio by NiceUnparticularMan Fri Apr 08, 2022 10:28 pm, Post by NiceUnparticularMan Fri Apr 08, 2022 4:02 pm, Post by tj Fri Apr 08, 2022 9:35 pm, Post The .gov means its official. Inflation is a major factor in falling stock prices. Please note that not all of the investments and services mentioned are available in every state. This brought its year-to-date returns . Weighted ER< .10%. Payment of principal and interest is guaranteed by the U.S. government. There will certainly be market volatility in September, with market participants guessing which way the Fed will go at the end of the month. This index was at 776.91. by rkhusky Fri Apr 08, 2022 3:40 pm, Post Help us tailor content specifically for you: A Plea for Action on Pay, Hiring and Other Workforce Reforms, OPM Wants to Do More for Federal Workers' Wellness, The People Behind the Federal Spending Cut Dilemmas, Anti-Telework Bill Makes Its Way to the Senate, Using Human-Centered Technology to Modernize and Better Serve Citizens. Donald Trump visiting for our advertising and marketing efforts. department for further clarification about your rights as a California consumer by using this Exercise My Completion Total Stock Market (TSM) Index (. TSP Performance in 2022 Through August In the first eight months of this year, Thrift Savings Plan (TSP) investors are not having a good year for most of their investments. International Stock Index Investment (I) Fund. After briefly swinging back into the black in July, nearly every portfolio in the federal governments 401(k)-style retirement savings program posted negative returns again in August. Roth (source, TSP.gov). As a result, if a current federal employee plans to retire in 2025 or 2030, the appropriate Lifecycle Funds are down less than the more aggressive funds. It is widely expected that the next rate hike will be either .50 or .75 basis points. We are here to serve you! 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. There will be an inflation update on September 13 which will be very important in the decision the Federal Reserve will make at the end of September regarding the size of their next rate hike. **, ***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 market has already dropped significantly and it has recovered significantly. by mokaThought Fri Apr 08, 2022 1:06 pm, Post Having a disciplined investment strategy and sticking to it through good times and bad has been shown to produce long term investor success. The S&P 500 (C Fund) increased 9.2% in the month of July. This is a broad index representing the U.S. Government, mortgage-backed, corporate, and foreign government sectors of the U.S. bond market. Sign up for free TSP Fund price and performance updates via email. By comparison, the best Bank CDs were yielding 0.45% for a 3-month term, or 1.8% for a 5-year term. Backlog FedSmith Polls General Schedule by White Coat Investor Tue Mar 02, 2021 6:55 pm, Post Aggregate Bond Index. July is Best Month for TSP Performance Since Trump Administration: One Fund Up 10.32%, the appropriate Lifecycle Funds are down less than the more aggressive funds, until inflation was brought under control, Biden Issues Alternative Pay Letter for 2023 Federal Pay Raise: Average 4.6% Raise, 2023 COLA Update: CPI-W Up 9.1% in One Year. on the last day of the previous month. If you are within 5 years of retirement, you should email me to get a more customized recommendation. AFGE Annuity VA Donald Trump by bsteiner Fri Apr 08, 2022 2:57 pm, Post by finite_difference Fri Apr 08, 2022 9:32 pm, Post With total plan assets in excess of $743 billion, the data indicate that most TSP investors did not move their money as the market declined. Rights link. Strictly Necessary Cookies - Always Active. Thank you for your service to our government! COLA That's not a small feat as the C Fund - the next. used to make the site work as you expect it to and to provide a more personalized web experience. As such, its hard to advise to pull out of the market. Roth I do not feel good about the market for the next few months. traffic on our website. Telework CSRS Mr. Zurndorfer is not affiliated with Raymond James, and is not authorized to provide investment advice on behalf of Raymond James, to solicit or refer investors to Raymond James, or to act for or bind Raymond James. The chart and table below show the recent history of the G Fund rate. The G fund was the best performer for the month, with a positive 0.25% return, while the I fund was the worst, falling by 5.79%. If you want to opt out of all of our lead reports and lists, please submit a Due to historically unprecedented Fed stimulus and low interest rates, the TSP G Fund no longer outpaces inflation as of 2020. The interest paid by the G Fund is set (and is recalculated every month) to the average rate of return of U.S. Treasury securities with 4 or more years to maturity. This means that the U.S. Government will always make the required payments. We wish all FedSmith readers the best in coping with the current market downturn and making good investment decisions for the future! Last updated: April 21, 2023 at 01:21 PM Sitemap | Events and scheduled maintenance. Thanks everyone! Proudly powered by WordPress
Thank you for your service to our government! The G fund will not lose money its returns are guaranteed by the U.S. Government. your data under the CCPA. The cost of electricity is up. 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. Start by registering for an upcoming TSP webinar on the Serving Those Who Serve website. August TSP fund performance reflects the abysmal performance of the stock market in 2022. This fund offers you the opportunity to earn rates of return that exceed money market fund rates over the long term (particularly during periods of declining interest rates). However, its always hard to say when the fall and rise will happen. We also use cookies to personalize your experience on our websites, including by Medicare 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. And if you've ever invested in commercial money market funds, you know that interest rates on these are even lower than T-Bill returns. All rights reserved. The Fed anticipates more rate increases over the remainder of this year. by AnnetteLouisan Mon Apr 04, 2022 4:26 pm, Post Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Similar to April, the C fund has the highest year-to-date return. If you are unsure how to create an investment strategy that you can stick to, there are many resources available to you via Serving Those Who Serve. website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site While gas prices are starting down (after going up quickly and are still much more expensive than 18 months ago), food prices are up dramatically. Nearly every portfolio in the TSP posted negative returns again in August. Interesting. Lets take a look at how this has worked out in practice so far: From the graph above, it's clear that the G Fund historically has outpaced 3-month U.S. Treasury Bills. The federal Thrift Savings Plan offers five different individual investment funds for participants: The Government Securities Investment (G) Fund. to learn more. tracking your browser across other sites and building up a profile of your interests. An official website of the United States government. and analytics partners. The rate is calculated monthly, based on the average yield of all U.S. Treasury securities with 4 or more years to maturity. Although inflation data has shown signs of slowing, the rhetoric from the Federal Reserve indicating they will not stop raising rates until inflation returns to is pre-pandemic rates of about 2% annually continues to create skittishness for market participants. by NiceUnparticularMan Fri Apr 08, 2022 12:04 pm, Post The G Fund is up 1.15% so far in 2022. Election Raymond James is not affiliated with and does not endorse or sponsor any of the listed websites or their respective sponsors. by FedGuy Fri Mar 05, 2021 8:30 pm, Post information by using this toggle switch. Top ten holdings as of 12/31/2022 The G Fund rate is calculated by the U.S. Treasury as the weighted average yield of approximately 183 U.S. Treasury securities on the last day of the previous month. Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the If you do not allow these cookies you may not be Copyright 2007-2023 My Federal Retirement. If the September inflation data comes in high, it is likely they will raise rates by .75 points. Taxes However, Mr. Zurndorfer does provide similar educational presentations at certain Federal Retirement Benefits Seminars (Seminars) hosted by STWS, for which Mr. Zurndorfer receives compensation from STWS. 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course. ensure the proper functioning of our And the common stocks of the C Fund lost 4.08% last month, bringing its 2022 performance down to -16.15%. The C Fund was up 9.22% and the S Fund was up 10.32% in July. -Jeff Spicoli. Check the background of this firm on FINRAs
by NiceUnparticularMan Fri Apr 08, 2022 2:09 pm, Post jayk7/Getty Images. Time is the ultimate risk mitigator. He has written extensively on a full range of human resources topics in books and newsletters and is a co-founder of two companies and several newsletters onfederal human resources. Every TSP fund is down for the year with the exception of the G Fund which is up 1.60%. The G fund is back up to 2.5% for April 2022 with no decline in the share price/principal on the way up. **Written by Jennifer Meyer, Financial Planner. COLA So far this year, the I Fund has fallen 19.71%. Supplementary cookies support additional functionality such as analytics. If you have enabled privacy controls on your browser (such as a plugin), we have Focus on active risk management and capital preservation. Performance & Risks Composition Fees & More Info TSP stock funds are still down for the year with very slight gains for three funds in August. The G Fund also has a positive return in August (0.18%). The TSP G Fund allows investors to earn interest rates similar to those of long-term U.S. Treasury Bonds, but without any risk of loss of principal. able to use or see these sharing tools. I may need to rewrite my IPS to reflect 100 G Fund allocation in my TSP (until the dividend yield of the S&P exceeds the G Fund return). Any opinions are those of Jennifer Meyer and not necessarily those of RJFS or Raymond James. If your G fund is overfunded (if you dont know what overfunded is, contact me asap), consider doing an inter-fund transfer from G into C & S to participate in the bounce-back. I know my exact balance on 4/1/2022, and I know how much it is going up everyday. Other politicians will try to convince voters those now in office have failed and a vote for the other party will lead to better economic times. The payment of G Fund principal and interest is guaranteed by the U.S. Government. Financial Planning Resources for Federal & Postal Employees. Preferences menu of your browser. These investors are optimistic this is a time to buy when stock prices are low and before they head back up again. Interest rates are rising. But if you look back further in history to the late 1980s, the G Fund returned over 9 percent per year: The G Fund compares very favorably to other risk-free investments. Continuing uncertainty around high inflation and rising interest rates is the main culprit of the current market downturn. FRTIB Member FINRA/SIPC, What to Look For in a Fed-Focused Financial Advisor, TSP webinar on the Serving Those Who Serve website. Postal Service You can usually find these settings in the Options or Preferences menu of your If you choose to invest in the G Fund, you are placing a higher priority on the stability and preservation of your money than on the opportunity to potentially achieve greater long-term growth in your account through investment in the other TSP funds. 2023 Ralph R. Smith. Obviously, as the stock market slide was becoming apparent, some TSP investors decided to halt their losses and move into the safety of the G Fund. But the securities actually earn a longer term rate, as mentioned before. Bargaining Sale of Personal Data, Targeting & Social Media Cookies, Under the California Consumer Privacy Act, you have the right to opt-out of the Here are the results. The G Fund is now the biggest amongst the five core TSP funds. You can see that the rate has fluctuated in the 0.75% to 4.25% range since 2012: The G Fund interest rate is near all-time lows. These cookies collect information for analytics and to All presentations, seminars, articles and videos are informational in nature and are not geared toward the circumstances or goals of any particular attendee; they are not intended to be, and should not be relied upon as, investment advice to anyone or a solicitation of Raymond James' services. The Fed Funds interest rate increased to 2.5%. Start by registering for an upcoming TSP webinar on the Serving Those Who Serve website. may not be reproduced without express written consent from Ralph R. Smith. Federal government websites often end in .gov or .mil. Yes, Government Executive can email me on behalf of carefully selected companies and organizations. Social media cookies are set by a range of social media services that we have FLRA After positive July, August returns dip back into negative territory for all core funds except G. Well, the market rebound of July 2022 was short lived. You may exercise your right to opt out of the sale of personal Reproduction without permission prohibited. Higher interest rates also increase the possibility of a recession and raising rates to lower inflation without causing a recession is difficult to accomplish. Subscribe to our free email list to get our news updates in your inbox. Monthly returns from 2022 and year to date returns for 2022 and longer-term averages are shown below. A rebound, when it comes, usually comes quickly. And the common stocks of the C . by RJC Wed Apr 07, 2021 8:38 am, Post President Biden has issued the letter outlining his alternative pay plan of a 4.6% average increase for the 2023 federal pay raise. Performance figures for the month of August 2022 have been posted on the TSP website. The L 2025 fund is down 6.31% and the L 2030 Fund is down 2.84%. As of May 2023, the TSP G Fund interest rate is 3.625%. One cannot enlighten the unconscious. Following are longer term rates of return for each fund, as of August 31, 2022. This was a massive gain with an annual gain of 9.6%. While politicians running for office may have issued positive press releases touting a monthly decrease in the rapid rise in inflation, most Americans were aware that over the past 12 months, the cost of food went up 10.9% (the largest increase since 1979), food at home was up 13.1%, electricity was up 15.2% and gas was up 44% (despite a drop in July). This month's unemployment rate dropped slightly to 3.5%, from 3.6%. $0.570/$1,000 account balance 0.057% (5.7 basis points), Investment expense ratio1 The Fed Funds interest rate increased to 2.5%. Almost keeping up with inflation now! Net administrative expense ratio 2023 FedSmith Inc. All rights reserved. So I happen to have 75 percent G Fund in my TSP, 25 percent C and thats also my future allocation. Perhaps the bull market is not over and we are just in a down slump. Aside from the war in Ukraine, there have been governments and economies showing troubling signs. OPM What is the current TSP G Fund interest rate? While allocations to the G Fund have increased by more than 7% this year, the C Fund has dropped by about 4%. Telework The fixed income index F fund and the S fund are still the only two funds in the red over the last 12 months. Not applicable. We have been in an unusually long market cycle. Inflation They Targeting cookies may be set through our site by our advertising partners. see some advertising, regardless of your selection. sites. A $1,000 investment in 1990 would be worth $3,895 today. All other funds, including the Lifecycle Funds, are showing a negative return for August. Taxes Treasury as the weighted average yield of That sounds good and makes a good headline. This is back-to-back quarters of negative GDP which means the American economy has entered a recession.. The F Fund is invested in a bond index fund that tracks the Bloomberg Barclays U.S. Thrift Savings Plan G Fund Monthly Returns is at 0.30%, compared to 0.35% last month and 0.20% last year. non-personal) investing questions and issues, investing news, and theory. Theme: Newsup by Themeansar. Right? Posts: 15091 Joined: Fri Aug 19, 2011 1:09 am Re: TSP G Fund rate 2.500% (April 2022) by rkhusky Sat Apr 09, 2022 8:37 pm One thing to realize about the G Fund is that, while it looks good now with no price drop and rising interest rates, previously when rates were dropping there was no corresponding price increase. Hiring performance, so that we may improve our websites and your experience. browser. performance. The leading FedSmith headline at this time last month read: July is Best Month for TSP Performance Since Trump Administration: One Fund Up 10.32%. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Each of the TSPs lifecycle (L) funds, which shift toward more conservative investments as participants get closer to retirement, finished August in the red. Vaccinations Data Breach This article Links are being provided for information purposes only. by mokaThought Mon Feb 08, 2021 8:23 am, Post These cookies are not used in a way that constitutes a sale of default settings according to your preference. However, you Unusual things to know about retiring December 31st 2022, In parts of Europe, energy prices have increased 1,000%. The rate is calculated monthly, based on the average yield of all U.S. Treasury securities with 4 or more years to maturity. Budget BrokerCheck. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. It is widely expected that the next rate hike will be either .50 or .75 basis points. by mokaThought Fri Apr 08, 2022 8:55 pm, Post - Thich Nhat Hanh. (Prices are in millions.).
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