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The 2025 TSP returns are now available and the overall performance of all funds was outstanding now going on 3 years in a row. Watch to learn the returns of each fund in 2025.
See all TSP data: https://www.tspdatacenter.com
https://www.fedsmith.com/2026/01/01/tsp-performance-soars-in-2025/
0:00 Introduction
0:59 2025 TSP Returns
2:30 3 Years in a Row of Positive Returns
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0:00
Hello everyone. I'm Ian Smith here with
0:02
fedsmith.com. Happy new year. 2025 is
0:06
over already. Can you believe it? And
0:09
we're at the end of the first quarter of
0:11
the 21st century on top of that. It's
0:14
crazy to think about, but I'm not here
0:16
to pontificate about that. I'm here to
0:20
go over the uh annual returns for the
0:23
TSP in 2025, which were outstanding. So,
0:27
if you're investing in the Thrift
0:29
Savings Plan as a federal employee or
0:31
former federal employee, you'll want to
0:33
be aware of what the returns are. We've
0:35
posted them on bedsmith.com and also on
0:38
our companion website,
0:40
tspdatacenter.com.
0:41
I'll be sure to leave links to um those
0:44
websites in the description for you. And
0:47
we also have an article that goes into a
0:48
lot more detail about all of this. But I
0:51
did want to give you a highle overview
0:52
and tell you the great news that if
0:55
you're investing in the TSP, you have a
0:57
lot to be happy about right now. The
1:00
best fund of 2025 was the IF fund which
1:03
invests in the international stocks and
1:06
it returned 32.45%
1:09
in 2025
1:11
and in December it returned 3%. So it
1:14
had a very good month as well. Again,
1:17
all of the funds did well for the year.
1:20
Um, I'll put up a table here of of the
1:23
core funds. In addition to the I fund,
1:25
which as I said had the best returns,
1:28
the S fund returned 11.38%.
1:31
The C fund was 17.85.
1:36
Fund 721 and the G fund, the slow and
1:39
steady G fund, which never has a
1:41
negative return, did a little over 4%.
1:45
The EL funds did well. Also, I'll put
1:47
those up. I'm not going to read every
1:49
single one of them to you. Feel free to
1:51
pause this video if you need to study it
1:53
more, but as you can see, they all did
1:54
very well. The funds that have the
1:58
furthest date out into the future, u, so
2:01
the L205 through the L2070 had the
2:06
highest returns, which you would expect
2:08
because they're the more aggressive
2:09
funds. They're designed for people who
2:13
are furthest away from their target
2:15
retirement dates. So, they're weighted
2:17
more heavily toward the stock funds,
2:20
which are the CS and I funds in the TSP.
2:24
And those funds are the ones that do
2:26
best when the stock market is up like it
2:29
has been. And in even better news, this
2:32
is the third year in a row of excellent
2:34
returns for the TSP. As good as 2025
2:38
was, you can argue it was not the best
2:41
year in the last three years. This table
2:44
here is for 2024. This shows the annual
2:47
returns for all of the TSP funds. As you
2:51
can see, the TS or excuse me, the C fund
2:55
did the best in 2024. It returned 25%
2:59
roughly. The I fund wasn't bad, but
3:03
nowhere near this year. And uh the S
3:06
fund also did very well uh in 2024. In
3:10
2023, if you look at this table, again,
3:12
also outstanding. The C fund did better
3:15
still at just over 26%, the S fund just
3:18
over 25. And the I fund had a good year
3:22
as well, just over 18%.
3:25
And this kind of makes the case for why
3:27
it's important to stay diversified.
3:31
You never know which funds are going to
3:32
do best in any given year. If you're
3:35
diversified in your investments, that
3:37
can help you over time. As we've seen
3:40
with the IF fund, it'll have good years,
3:41
bad years, or any fund can have good or
3:44
bad years. But 2022 wasn't so good. That
3:48
was a down year, as you'll probably
3:50
remember. And also, you of course never
3:53
know what the stock market's going to do
3:54
in any given year, but the federal
3:57
employees who do the best in the TSP
4:01
invest for the long haul. We
4:02
consistently see that in the statistics
4:05
that we publish on the numbers of TSP
4:07
millionaires which have grown a lot
4:10
especially in the last 5 to 10 years
4:13
with the stock market being up as much
4:15
as it has been. But they they tend to
4:18
stay invested for the long haul. They
4:21
ride out the inevitable ups and downs of
4:24
the stock market over the course of
4:26
their entire federal care careers and
4:28
they continue to contribute and invest
4:31
steadily with uh throughout their career
4:34
with each paycheck or most of their
4:36
paychecks certainly and that leads to
4:39
wealth and a financially secure
4:41
retirement. So congratulations to all of
4:44
you invested in the TSP on the third
4:46
year in a row of outstanding returns.
4:49
Hope you found this video helpful and
4:51
thank you for watching.
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