TSP Returns Jump in November

TSP funds are up across the board for November.

TSP investors have some extra money in their retirement accounts this month. Every single TSP fund was up in the last month.

The small company fund (S Fund) was the big winner with a return of 4.72% just for November. it is up 14.64% for the past twelve months.

The C fund was up 3.75% for the month and it is up 8.41% for the past twelve months.

The I fund came in third with a return of 2.44% for November. It is up 13.35% for the past twelve months.

The two bond funds also had a small positive return. The F fund is up 0.38% for November and is still in the black with a 12 month return of 2.42%. The slow and steady G fund was up 0.36% for the past month and is up 4.42% for the past twelve months.

The L funds also reflected the strong stock market returns last month.

Here are the results for these funds:

  • L2040: 3.08%
  • L2030: 2.80%
  • L2020: 2.42%
  • L2010: 1.89%
  • L Income: 1.03%
  • The L funds obviously reflect the greater concentration in stocks for those with the longest time frame until retirement. That is why the L2040 fund finished ahead of the other funds.

    As noted in articles on the TSP returns over the past two months, the final quarter of the year is often the best one for stocks.

    With plenty of bad news to dampen stock prices, some readers may be wondering why stock prices are going up.

    One strong possibility for the increase in stock prices is that the nation’s economy is still strong. The economic expansion in the late summer was reflected in the growth of the Gross Domestic Product. It was recently revised upward by the government to 4.3% for the third quarter. It is the 10th consecutive quarter of growth that is close to an annual growth rate of 4%.

    It is probably not a coincidence that the economic growth spurt started when it was clear that tax cuts on dividends and capital gains were going to pass in Congress. Those cuts have provided much of the fuel for the economic engine that has kept on working despite the combined shocks of natural disasters, rising interest rates and increased oil prices.

    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