TSP funds returned to positive balances in August

The Thrift Savings Plan (TSP), the federal government's 401(k)-style retirement savings program, saw an increase in value in August, marking the first time since January. This positive trend was observed across most TSP funds, with all lifecycle (L) funds and the international (I) fund recording gains.

The common stocks of the C Fund, which tracks the S&P 500, saw a 2.03% growth in August. This growth expanded the C Fund's gains since January to 10.76%. The C Fund also recorded the highest annual growth among TSP funds in 2021.

The L 2035 Fund, which is designed for individuals retiring in 2035, grew 10.71% since the beginning of the year. The L 2050 Fund, designed for those retiring in 2050, recorded an even higher growth of 12.47%. The L 2040, L 2045, and L 2030 Funds also posted impressive gains, with growth rates of 11.37%, 11.93%, and 10.04% respectively, since the start of the year.

The L Income Fund, designed for those already retired, grew by 6.24% since January. The fixed income (F) fund, which invests in bonds and other fixed-income securities, ended August with a 1.19% increase, bringing its yearly growth to 4.99%.

The international (I) fund, which invests in stocks and bonds from countries outside the United States, recorded a 3.95% increase in August. This boosted its returns for the year to a significant 21.50%. Year-to-date returns for the L 2075 Fund are not yet available as the portfolio launched in July.

The Thrift Savings Plan's S Fund, which invests in small- and mid-size businesses, had the best performance among TSP funds in August, with a 4.08% growth. This effectively doubled its gains for the year, bringing its 2022 growth to 8.96%.

The G Fund, composed of government securities, gained 0.37% in August. Since January, the G Fund has grown by 2.98%.

These gains are a positive sign for the TSP's continued growth and the financial security of federal employees and military personnel participating in the programme.