![]() Total Fund Assets December 2021 (Billions) This table shows the changes from Decemto May 31, 2022. The transferring of money into the G Fund from the TSP stock funds is reflected in total assets and the percentage of participant assets in each fund. Transfers Make G Fund Largest TSP Fund As C Fund Participation Declines Money leaving the C Fund went from $17 million in April to $3.49 billion in May. While a large majority of TSP participants have not moved money, the number of dollars being transferred into the G Fund increased from $1.8 billion in April to $6.35 billion in May. Nevertheless, the amount of money being transferred into the G Fund in May was about 249% higher than the amount transferred in April as investors moved money out of the falling stock funds. Here are the amounts transferred in May in the TSP:Īt the monthly meeting of the TSP, Board members emphasized a small number of TSP participants transferred funds. In May, transfers into the G Fund increased significantly over the dollar amount transferred in April as the stock market continued to decline. TSP Transfers into G Fund Increase 249% in One Month When the S&P 500 has fallen at least 15% the first six months of the year, as it did in 1932, 1939, 1940, 19, it has risen an average of 24% in the second half, according to Dow Jones Market Data. In fact, history shows they have often done the opposite. The good news for investors is that markets haven’t always done poorly after suffering big losses in the first half of the year. The latest annual inflation figure showed a yearly inflation amount of 8.6% and a 9.6% inflation rate as measured by the CPI-W index. In effect, the purchasing power of that 2022 raise or COLA has already been decimated by inflation. Gas and food prices have gone up rapidly. Many readers, perhaps most, may feel that a recession is already here. In effect, stock prices will likely be volatile as we get closer to the national elections in November. What will happen with the war in Ukraine remains to be seen. This action may tamp down inflation and could lead to a recession which may reduce stock prices even more. This will probably slow economic growth as rates rise. The Federal Reserve plans to continue raising interest rates to slow down inflation. It is likely that more volatility is ahead this year for stock prices. These are the June 2022 TSP performance returns for all of the TSP Funds: FundĪll TSP returns are available at. The C Fund is down about 20% so far in 2022 and the S fund is down almost 28% so far this year. Of course, for those who will retire in about 2055 or later, the stock market will be much higher and these losses will long be forgotten.įor those federal employees who are retired or close to retirement, the return rates are scarier. The more aggressive Lifecycle Funds are down more than 20% so far in 2022. All of the other TSP Funds are down so far this year.
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