Does the TSP C fund follow the S&P 500?
C Fund returns move up and down with the prices of the stocks in the S&P 500 Index (market risk) or if C Fund investments do not outpace or grow enough to offset the reduction in purchasing power (inflation risk).
The S Fund's investment objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index, a broad market index made up of stocks of small-to-medium U.S. companies not included in the S&P 500 Index.
Your best bet is to stick with the C, S and I Funds. 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.
The C Fund has grown 7.49% in 2024, marking the best performance among the TSP's core funds.
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.
But to summarize that article, the 5 core funds can be broken down into conservative and aggressive funds. The conservative funds are the G and F funds and the aggressive funds are the C, S, and I funds.
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.
The C Fund assets are held in a separate account and managed to fully replicate the Standard and Poor's 500 (S&P 500) Index. The earnings consist primarily of dividend income and gains (or losses) in the price of stocks.
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%.
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? Contact us to learn more.
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.
The big winner in January was the C fund. The common stock index posted positive returns with a 1.66% increase and started the new year with the highest returns at 20.78%. The government securities investment G fund posted positive returns with 0.34% to start January, which was . 05% lower from December.
How you distribute your money among the TSP funds should reflect your time horizon, or when in the future you'll need retirement income, and your risk tolerance. If you want to choose an investment option that will adjust automatically to manage risk over time, consider the Lifecycle Funds (L Funds).
Age 40—three times annual salary. Age 45—four times annual salary. Age 50—five times annual salary. Age 55—six times annual salary.
Summary: The TSP C Fund (Common Stock Index Investment Fund) is a U.S. large cap stock index fund that tracks the S&P 500 index.
TSP C Fund
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.
In the trailing five-, 10-, 15-, and 20-year periods, the Vanguard Growth ETF (VUG 0.98%) has outperformed the S&P 500. That is a remarkable track record.
SBI Nifty Index Fund
SBI Nifty Index Direct Plan-Growth is one of India's top 10 index funds. It is a mutual fund scheme categorised under the Large Cap Index category. Over the past year, SBI Nifty Index Direct Plan-Growth has delivered returns of 15.37 percent.
As of year-end 2023 just under 117,000 TSP investors had $1 million or more in their accounts, an increase of some 40,000 during the year, another impact of the rebound in stock-based investment funds during the year making up for their losses of 2022.
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.
Is the C fund good?
C Fund Soaring in 2024
The C Fund is up 7.1% for the year. It is the best-performing fund in the TSP so far this year. The C Fund went up 5.34% in February. The S Fund performed even better during the month with a return of 6.03% and a year-to-date return of 3.48%.
But the G Fund does not, the F fund does. It's down because the Federal Reserve has been raising interest rates. But those bonds, you know, even the corporate bonds, it doesn't mean they're not going to pay off. And it certainly doesn't mean that they're not paying interest, which they continue to do.
The primary difference between Roth and traditional TSPs is how they're taxed. Specifically, a traditional TSP is better if you want to leverage your account to decrease your current income taxes and pay for withdrawals during retirement.
Four of the five funds are index funds, which hold securities exactly matching a broad market index. 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.
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. Military weapon grade: Fund is invested in military contractors above the threshold of 2.5% and below the threshold of 4%.
References
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- https://www.fedsmith.com/2024/01/26/number-of-tsp-millionaires-hits-record-high-in-2023/
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