TSP Update for Month Ending June 2022: The Thrift Savings Plan’s rough year continues. The S-Fund has fallen almost 30% since 12 months ago.
Complimentary TSP Webinar
I have been waiting months to write a happy update for TSP. July brought some relief for weary market participants with all 5 core funds posting positive monthly gains for the first time this year. Overall, the markets posted the best monthly gains since November 2020.
The debate around if and when the U.S. economy goes into a recession continues to occupy the news media on a daily basis. There is some good news on the inflation front as gas prices have come down from their June peaks. In addition, July brought some good news on the earnings front as some of the largest U.S. companies reported earnings that met or beat analysts’ expectations. Although there is still a tremendous amount of uncertainty as to how the second half of the year will unfold, it is nice to be able to write about positive monthly returns for a change. Of course, it is important to not make investment decisions based on the short-term swings of the market. Having a disciplined long-term strategy that you can stick to through the ups and downs of the market cycle is the best way to achieve long term success in the markets.
Following the transition to a new recordkeeper, the TSP website has posted information regarding quarterly TSP statements. According to the website, there will be two separate statements for the second quarter of 2022. The first will cover April 1 to May 26, 2022. The second statement will cover May 26, 2022 to June 30, 2022. They also note that some beneficiary information was not transferred as part of the transition to the new site. We have found this to be very common among the Feds we work with. Please confirm that your beneficiary information is recorded on the new website as soon as possible. Also of note is that they are no longer mailing quarterly statements. They will be available online. It appears you can request to have those statements mailed, but you must request that via Delivery Preferences
Performance figures for the month of July 2022 have been posted on the TSP website. The S fund was the best performer for the month, with a positive 10.32% return, while the G fund was the worst, earning 0.26%. Monthly returns from 2022 and year to date returns for 2022 and longer-term averages are shown below. (source, TSP.gov)
| Year | G Fund | F Fund | C Fund | S Fund | I Fund |
| Last 12 months | 2.03% | -8.74% | -5.15% | -22.12% | -14.23% |
| 2022 YTD | 1.41% | -7.86% | -12.58% | -20.48% | -14.77% |
| 2022 Monthly | |||||
| July | 0.26% | 2.47% | 9.22% | 10.32% | 5.15% |
| June | 0.29% | -1.94% | -6.55% | -7.95% | -8.21% |
| May | 0.21% | 1.13% | -1.65% | -3.53% | 1.19% |
| April | 0.20% | -3.75% | -8.72% | -10.57% | -6.39% |
| March | 0.17% | -2.73% | 3.72% | 0.90% | -0.33% |
| February | 0.14% | -1.08% | -2.99% | 0.03% | -2.61% |
| January | 0.13% | -2.09% | -5.18% | -10.07% | -3.96% |
Month to month trends as shown above are interesting, but it is important to remember that short term market volatility is to be expected and employees should not be making investment decisions based on short term performance. Following are longer term rates of return for each fund, as of July 31, 2022. (source, TSP.gov).
| Year | G Fund | F Fund | C Fund | S Fund | I Fund |
| 1 year | 1.41% | -7.86% | -12.58% | -20.48% | -14.77% |
| 3 Year | 1.51% | -0.05% | 12.81% | 7.40% | 3.37% |
| 5 year | 1.98% | 1.39% | 12.78% | 8.27% | 3.14% |
| 10 year | 1.99% | 1.94% | 13.75% | 11.42% | 6.22% |
| Inception Date | 4/1/1987 | 1/29/1988 | 1/29/1988 | 5/1/2001 | 5/1/2001 |
Please reach out to us with questions and follow our website for the most recent updates. We also run a monthly TSP webinar focused on education and presented by federal benefits expert, Ed Zurndorfer. Here is a link to our upcoming webinars.
**Written by Jennifer Meyer, Financial Planner. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Jennifer Meyer and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
***The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will depend on how much you (and your agency or service, if you’re eligible to receive agency or service contributions) put into your account during your working years and the earnings accumulated over that time. The Federal Retirement Thrift Investment Board (FRTIB) administers the TSP.***
The FedLife Podcast is your in-depth, biweekly deep dive into the world of federal benefits and retirement planning. Hosted by federal benefits expert Ed Zurndorfer and Dan Sipe of Serving Those Who Serve, each 30-minute episode unpacks the complexities of FERS and CSRS retirement, FEHB and Medicare, survivor benefits, tax planning, and more. Designed for federal employees and retirees who want more than just the basics, FedLife goes beyond the headlines to explore the rules, nuances, and strategies that can make a meaningful difference in your retirement. Remember: it’s your Fed life, make it a great one.
The Fed15 Podcast is your weekly 15(ish)-minute briefing on federal benefits and financial planning, built specifically for federal employees and retirees. Hosted by Dan Sipe and Katelyn Murray of Serving Those Who Serve, each episode delivers clear, actionable guidance on topics like FERS and CSRS retirement, TSP strategies, FEHB, survivor benefits, tax planning, and more! Whether you’re five years from retirement or already there, The Fed15 helps you cut through the noise, avoid costly mistakes, and make confident decisions about your federal benefits.
