F and I Funds Surge in August

The F and I funds in your TSP did well in August; the S and C funds declined.

The I fund did well during August for TSP investors. It led in the rate of return for all of the TSP funds last month with a positive return of 3.23%. For the last twelve months, it is up 23.77%.

The other two stock funds did not do well, however, The S fund, which still leads in the return rate for the past twelve months, was down 1.01%. For the preceding 12 months, it is up 25.86%.

The C fund was also down, retreating 0.90%. For the past twelve months, it is still up 12.57%.

The F fund had its best month since September 2003. It was up 1.23%. (Back in September 2003 it was up 2.68%.) The F fund is up 4.18% for the past twelve months.

The G fund was up 0.37% and it is up 4.37% for the past twelve months.

The new L funds also have reported their first monthly results. As might be expected, these funds are not likely to have a great deal of volatility as they are a compilation of the other TSP funds. Here are the results for these funds:

  • L2040: 0.07%
  • L2030: 0.07%
  • L2020: 0.15%
  • L2010: 0.16%
  • L Income: 0.17%

Part of the drag on stock prices in the past month has been the rise in oil prices which were going up before the impact of Hurricane Katrina had been felt. As most readers have noticed, the cost of gasoline has been skyrocketing since then as the oil facilities in the Gulf Coast have been damaged.

It is likely that the impact of the hurricane will continue to have a ripple effect throughout the economy. The cost of heating oil, natural gas and electricity will be going up.

It is not surprising that some analysts are anticipating the ripple effect will lead to a decline in the stock market or at least more volatility in the prices of stocks as investors weigh the daily impact of recent events and the full impact of the hurricane on oil supplies coming from the Gulf Coast.

Your best bet: stay diversified and plan for the long term with your retirement investments.

About the Author

Ralph Smith has several decades of experience working with federal human resources issues. 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 on federal human resources. Follow Ralph on Twitter: @RalphSmith47