Is your TSP account taking you where you want to go?

Ever board a bus to take you to a winter vacation in Daytona Beach only to wake up when it reached its true destination: Detroit?

Not that there’s anything wrong with Detroit but…

Your bad! But stuff happens. Sometimes you get on the wrong boat, bus, train or investment vehicle. One that isn’t going where they are thinking. It happens. A lot.

So how many Thrift Savings Plan investors don’t understand exactly know what their retirement nest egg is invested in? Maybe more than you think.

Example:

From time to time we hear from people who say the stock fund (C, S or I Fund) they’ve invested in isn’t doing as well as the returns reported in the newspaper. Sometimes it’s a timeline issue involving when the returns were reported. But sometimes people, through no fault of their own, are just in the wrong fund. Simple as that.

Recently heard from a fed who early this month contacted us about his investments in the C fund. He wrote, “How is it that the Dow Jones average went up 300 points, but the valuation of my TSP share went down…and I took a hit? The folks at the TSP cannot seem to answer that question.”

We found one. Kim Weaver, the spokesperson for the Federal Retirement Thrift Investment Board (it runs the TSP) said:

Without knowing what fund he’s invested in, I can’t address his specific rate of return. However, as noted, the TSP Funds do not track the Dow Jones Industrial Average (DJIA). For U.S. stocks, we offer the C and S Funds:

The Dow Jones Completion Index (S Fund) offers the mid- and small capitalized stocks that compliment and “complete” the U.S. stock market when added to the C Fund.

I hope this is helpful. K.W.

Nearly Useless Factoid

Portugal is by far the top country for cork production. In 2019, they exported 60.8% of the worlds corks (US $1.2 billion worth). Behind Portugal was Spain with 19.4% ($379.8 million worth).

Source: World’s Top Exports

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THRIFT SAVINGS PLAN TICKER

Dec 03, 2021 Close Change YTD*
L Income 23.2215 -0.0408 4.32%
L 2025 11.9963 -0.0431 7.70%
L 2030 42.3804 -0.2118 9.58%
L 2035 12.7320 -0.0701 10.38%
L 2040 48.1934 -0.2912 11.19%
L 2045 13.2040 -0.0861 11.85%
L 2050 28.9321 -0.2026 12.55%
L 2055 14.2261 -0.1257 15.21%
L 2060 14.2261 -0.1257 15.21%
L 2065 14.2260 -0.1257 15.20%
G Fund 16.7177 0.0007 1.26%
F Fund 21.0261 0.08 -1.14%
C Fund 68.4493 -0.5796 23.16%
S Fund 80.7041 -1.887 11.80%
I Fund 37.7230 -0.1338 6.04%
Closing price updated at approx 6pm ET each business day. More at tsp.gov
* YTD data is updated on the last day of the month.