Mirroring a rough month for the stock market, all but one fund in the federal government’s Thrift Savings Plan posted negative returns in April that watered down year-to-date gains.
The S Fund featuring small- and mid-sized businesses had the toughest April, falling 6.46% to nearly wipe out all the fund’s gains for 2024. It is now up just 0.01% for the year entering May.
Next worst was the common stock C Fund, which dropped 4.08% in April but is still up 6.03% for the year.
The I Fund featuring international investments dropped 3.17% in April, bringing its YTD gain down to 2.6%. The fixed income F Fund lost 2.47% in April and is now down -3.2% for the year.
The government securities G Fund was the only one to post a gain in April at a minimal 0.35%. It is up 1.41% so far in 2024.
All three major U.S. stock indexes finished the month of April in the red. After setting a record high at the end of March, the Dow Jones Industrial Average experienced a 5% decline in April, its worst month since September 2022. The S&P 500 lost 4.2% in April, Nasdaq Composite finished the month 4.4% lower.
All of the TSP’s target-date fund-like lifecycle (L) funds experienced declines in April. The L Income fund for retirees already making withdrawals fell 0.95%, dropping its YTD gain to 1.85%.
The L 2025 fell 1.27% and to +2.12% for the year; L 2030 fell 2.48% and to +2.76% YTD; L 2035 fell 2.76% and to +2.87% YTD; L 2040 fell 3.03% and to +2.99% YTD; L 2045 fell 3.27% and to +3.09% YTD; L 2050 fell 3.49% and to +3.22% YTD; L 2055 fell 4.06% and to +3.98% YTD; L 2060 fell 4.06% and to +3.98% YTD; and L 2065 fell 4.06% and to +3.97% YTD.
The 401(k)-like Thrift Savings Plan, a cornerstone of retirement planning for 7 million participating federal employees and uniformed service members, oversaw $845 billion in assets as of Feb. 2024, making it the nation’s largest defined contribution plan.
According to data from the Federal Retirement Thrift Investment Board (FRTIB), there were 116,827 TSP millionaires as of the end of 2023—a 52% increase over the 76,889 who had at least seven-figure account balances at the end of 2022.
SEE ALSO:
• Modest Start to 2024 for Thrift Savings Plan Funds
• TSP Realized Significant Gains in 2023
• TSP’s I Fund Gets New Benchmark Excluding Chinese Investments
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.