Are C funds a good investment? (2024)

Are C funds a good investment?

The C Fund can be useful in a portfolio that also contains stock funds that track other indexes such as the S Fund and the I Fund. By investing in all segments of the stock market (as opposed to just one), you reduce your exposure to market risk. The C Fund can also be useful in a portfolio that contains bonds.

What is the average return on the C fund?

Thrift Savings Plan C Fund Monthly Returns is at 3.22%, compared to 5.34% last month and 3.67% last year. This is higher than the long term average of 0.96%.

What is the C fund performance in 2024?

The C Fund has grown 7.49% in 2024, marking the best performance among the TSP's core funds. The small- and mid-size businesses of the S Fund posted the strongest numbers in February, gaining 6.03%. That's good enough to bring the fund 3.48% into the black in 2024.

Does the C fund have dividends?

While there is some volatility, the C Fund is very popular because there is tremendous opportunity for significant dividends as market prices shift. Have questions about the C Fund and how to make the most of your TSP?

What is the most aggressive fund in the TSP?

The conservative funds are the G and F funds and the aggressive funds are the C, S, and I funds.

How is the C fund performance?

The C Fund's common stocks increased 3.22% in value last month, good for a 10.55% total increase so far in 2024.

How much should I invest in C fund TSP?

Here's the ratio we recommend for your portfolio: 80% in the C Fund, which is tied to the performance of the S&P 500. 10% in the S Fund, which includes stocks from small- to mid-sized companies that offer high risk and high return. 10% in the I Fund, an international fund that invests in stocks from overseas companies.

What is the average TSP balance at retirement?

To compare, the average 401(k) balance based on 4.9 million defined contribution retirement plans was $112,572 at the end of 2022, according to Vanguard's 2023 analysis. To compare more accurately, at the end of 2022, the average TSP balance for a FERS employee was $157,325.

Does the TSP C fund pay dividends?

You can't really see the difference at first glance, because the TSP funds all automatically include dividends and interest in the fund price.

What is the best fund to invest in TSP?

The G Fund is often considered the safest option among TSP funds. It invests in U.S. Treasury securities, providing a stable return with minimal risk.

What is the C fund ETF equivalent to?

Alternatives to the C Fund are iShares Core S&P 500 ETF (IVV) or Vanguard S&P 500 ETF (VOO). A mutual fund version of the C fund could be the Fidelity 500 Index Fund (FXAIX). All of these funds have low costs equivalent to the C fund.

What is the best investment in the TSP?

THE G FUND:

They give returns roughly equal to 10-year treasuries, but have liquidity and protection against interest rate fluctuations even better than 3-month T-bills. This gives the G Fund the best overall risk/reward ratio of any Treasury investment, and it's only available to TSP investors.

How many TSP investors are millionaires?

According to the latest figures from the Federal Retirement Thrift Investment Board (FRTIB), the agency that oversees the Thrift Savings Plan (TSP), there are now 116,827 TSP millionaires as of the end of December 31, 2023. At the end of 2022, there were 76,889, which is a 52% increase in one year.

How much should I have in my TSP at 40?

Age 40—three times annual salary. Age 45—four times annual salary. Age 50—five times annual salary. Age 55—six times annual salary.

Is the C fund an index fund?

The TSP C Fund is a U.S. stock index fund invested in common stocks of the 500 companies in the Standard & Poor's 500 (S&P 500) Index. Many of the stocks in the index are household names, such as General Electric, Coca Cola, Exxon Mobil, and Walt Disney.

What is the difference between the TSP C fund and the S fund?

The money participants place in the F and C Funds is invested in separate accounts, while the S and I Fund monies are invested in trust funds commingled with other tax-exempt pension and endowment funds.

What is the difference between A and C funds?

Like Class B shares, Class C shares typically impose higher annual operating expenses than Class A shares due primarily to higher 12b-1 fees. Class C shares may be less expensive than Class A or B shares if you have a shorter-term investment horizon because you'll pay little or no sales charge.

Is TSP better than Fidelity?

The government's matching contribution makes TSP the default choice for current employees, but without that matching option, the Fidelity and Vanguard funds have become more attractive as they lower or eliminate costs such as commissions and fees.

What is the recommended TSP allocation by age?

Here are some general guidelines for asset allocation based on age: 20s-30s: 70-80% stocks, 20-30% bonds. 40s-50s: 50-60% stocks, 40-50% bonds. 60s and beyond: 30-40% stocks, 60-70% bonds.

What fund does the TSP C fund track?

TSP C Fund - Common Stock Index Investment Fund tracks the S&P 500 Index. The results below are based on the holdings of the iShares Core S&P 500 ETF (IVV), which tracks the same index.

How much should I have in my TSP by age 50?

By age 50, you would be considered on track if you have three-and-a-half to six times your preretirement gross income saved. And by age 60, you should have six to 11 times your salary saved in order to be considered on track for retirement.

How much should I put in my TSP per month?

As long as you are contributing at least 5% of your bi-weekly gross pay each pay period, you will receive the 4% Agency Matching contributions each pay period.

How does TSP C fund work?

The C Fund holds all the stocks included in the S&P 500 Index in virtually the same weights that they have in the index. The performance of the C Fund is evaluated on the basis of how closely its returns match those of the S&P 500 Index.

Is the TSP F fund a good investment?

In periods of falling interest rates, the F Fund will experience gains from the resulting rise in bond prices. So in the long run, you may expect F Fund returns to exceed those of the G Fund; however, you should also expect greater price volatility (up and down movements).

Should I move TSP to g fund?

If you choose to invest in the G Fund, you are placing a higher priority on the stability and preservation of your money than on the opportunity to potentially achieve greater long-term growth in your account through investment in the other TSP funds.