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TSP Yearly Performance

FFEBA Contributor

January 10, 2025

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The stock market experienced significant growth in 2024, marking a second consecutive year of substantial gains. These successful consecutive years have also had an impact on the Thrift Savings Plan (TSP), which experienced notable performance across its various funds in 2024. Here’s a summary of each fund’s annual returns:

C Fund: The C Fund, which tracks the S&P 500 Index, exhibited strong performance in both years, with a 26.25% return in 2023 and 24.96% in 2024. This reflects robust growth in large-cap U.S. equities during this period.

S Fund: The S Fund, representing small to mid-sized U.S. companies, also showed impressive returns, particularly in 2023 with a 25.30% gain, followed by a 16.93% return in 2024.

I Fund: The I Fund, which focuses on international stocks, had a notable return of 18.00% in 2023 but experienced a lower return of 4.27% in 2024, indicating variability in international market performance and the transition to a new benchmark index.

G and F Funds: Both the G Fund (Government Securities) and F Fund (Fixed Income) had modest returns in both years, consistent with their focus on lower-risk, fixed-income investments.

TSP Asset Allocation

As of the latest available data, the C Fund holds the largest share of TSP assets (36.1%), followed by the G Fund (23.2%), and the S Fund (10.6%). This distribution suggests a preference among TSP participants for U.S. large-cap equities and government securities, balancing growth potential with stability.

It’s important to note that asset allocation preferences can change over time due to factors like market performance and participant demographics. For the most current information on fund performance and asset allocation, you can visit the official TSP website.

Looking Ahead

Achieving back-to-back years of over 20% gains is uncommon in the stock market. Since 1871, such consecutive annual increases have occurred only ten times. This rarity has led some strategists to caution about potential market corrections in the future. Market dynamics can change, and periods of rapid growth may be followed by more moderate returns.

You may want to review your TSP asset allocation to mitigate potential risks in the coming year. Reach out to an FRC® trained advisor who understands your unique federal benefits and can help you develop a plan to weather the market and keep your retirement on track.

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