April Brings A Smile To Most TSP Investors

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By on May 1, 2006 in Current Events with 0 Comments

The TSP returns for April are in and most TSP investors will be cheered by the results.

All funds, with the exception of the F fund, are up for the past month.

The international stock fund is far and away providing the best returns for April: 4.83%. For the past twelve months, the I fund has returned 33.58%.

The S fund only had a positive return of 0.34% for April but it is up 30.54% for the past twelve months.

The C fund had a strong performance in April as well. It was up 1.35% for the month and is up 15.40% for the past twelve months.

The F fund is showing the strain of higher interest rates. It is down 0.19% for the month but has a small positive return for the past twelve months with a gain of 0.76%. (See Is the TSP’s F Fund a Risky Investment?)

The G fund did about the same as usual: slow and steady with a positive April return of 0.44% and a return for the past twelve months of 4.52%.

Here is a quick summary:

Fund C S I F G
12 Month Return 15.40% 30.54% 33.58% 0.76% 4.52%
April Return 1.35% 0.34% 4.83% (0.19%) 0.44%

Here are the returns for the lifecycle funds:

L2040 1.75%
L2030 1.62%
L2020 1.47%
L2010 1.18%
L Income 0.74%

Astute readers will want to take note of the returns for the L funds.

The best performing fund had a return of 1.75%. That is considerably less than the 4.83% return for the I fund for the month of April although relatively few TSP participants are likely to put all or most of their investments into this fund.

However, the L funds provide diversification among the five options available to TSP investors. Even conservative investors that are nearing retirement may have had trouble matching the 1.18% return of the L2010 fund (for those with a target retirement date of 2010). Some TSP investors nearing retirement put all or most of their money into the G fund.

With a monthly return of 0.44% for the G fund in April, investors nearing retirement may want to look closely at the returns of the L Funds and decide if you should consider diversifying your investments.

In short, TSP investors have a reason to smile as the returns of their retirement investments are continuing to provide a positive return. Enjoy it while it lasts as this continuing bull market in stocks may be wearing thin in coming months.

© 2017 Ralph R. Smith. All rights reserved. This article may not be reproduced without express written consent from Ralph R. Smith.

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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

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