GovernmentExecutive.com

All but the most stable Thrift Savings Plan fund, the government securities (G) fund, posted losses for the month of June.

The G fund grew 0.32 percent in June for a 1.79 percent overall gain so far this year. That is the highest return posted by any of the TSP funds in 2008. The F fund, which is made up of fixed-income bonds, is up 1.26 percent this year, but fell 0.08 percent in June. All other funds are down since January.

The C fund, which tracks Standard & Poor's 500 Index, lost 8.41 percent in June making it the largest loss among the five main funds. The fund is down 11.9 percent so far this year, and 13.05 percent during the last 12 months.

The I fund, which invests in European, Asian, and Australian companies, posted the second-largest loss, 8.15 percent in June. The fund has decreased 10.78 percent in 2008, and 10.42 percent during the last 12 months.

The S fund, which invests in small- and mid-size U.S. companies and tracks the Dow Jones Wilshire 4500 Index, fell 7.63 percent. During 2008, the fund has dropped 7.68 percent, and 11.14 percent during the last year.

All the lifecycle funds, which include riskier investments earlier in a participant's career and shift to a more conservative allocation as retirement approaches, posted losses in June after gaining in May. The L 2040 fund, for participants who plan to retire in or around 2040, fell 6.7 percent in June; L 2030 dipped 5.88 percent; L 2020 decreased 4.97 percent; and L 2010 fell 2.65 percent. L Income, designed for participants close to retirement, fell 1.47 percent.

All the L funds are down in 2008, and only the L Income fund has gained in the past 12 months, with the riskiest among the L funds posting the largest losses. L 2040 is down 8.39 percent in 2008, 8.54 percent during the past 12 months; L 2030 dropped 7.18 percent in 2008, 6.97 percent during the past year; L 2020 is down 5.83 percent in 2008, 5.26 percent during the past year; and L 2010 fell 2.59 percent so far this year, 1.12 percent during the past 12 months.

COMMENTS

• Tst....Tst, the chickens are finally coming home to roost! are they not? Boy how we all long for "Defined Benefit Plans"! like our CSRS counter parts. Reagan sure sold us FERs/TSP suckers a bill of goods. Twenty years ago everyone thought they could make a killing and retire comfortable with their FERS/TSP-401K retirement plans....I think many fed workers are starting to have 2nd thoughts right about now. Would anyone like the opportunity to go back under CSRS vs the current FERS retirement system?? Of course they would. CSRS Posted July 17, 2008 12:33 PM
• As anyone who sees the situation honestly would assess; in this contentious environment, how much is a bare legislative majority likely to get through an opposing lame duck president? Let’s be real on both sides; that answer can only be “No much!” Still, recent budgetary compromises show much promise and have started a snowball effect that will, hopefully, slow down this juggernaut of a runaway budget. This has only been possible with the cooperation of the Party Pachyderm and the POTUS, who signed and endorsed it and evidently have come to question the program of the past 7 years. And as for the global poverty fund, a number of news outlets have made false reports about this bill calling it the Global Poverty Tax. What never got told was that this non-binding “sense of Congress” is a bi-partisan bill with multiple republican sponsors. The numbers quoted (.7% and 1% of the budget) would actually be less than the current amount of aid given, the aid can be non-monetary, and this would be quite beneficial to the US image and moral standing; hence Shrub’s backing similar legislation. Bottom line; Skeeter is so worried about November that he’s joined the disinformation posse. The value of our TSP is directly indicative of the fiscal leadership of the past 7 years; or lack there of. Kiting checks, pandering tax relief, failure to heed Greenspan’s bubble warnings, the conflict costs; and the lack of investment in our children’s education, infrastructure, and research and development has left this nation with its monetary standard in the gutter and many folks morally and fiscally bankrupt. Even as I write this, I regret calling so many people morally bankrupt. No, I can not and will not say that of everyone in foreclosure; but what can you say of so many people signing contracts and then asking them to be torn up? And the lending institutions are not without blame. These businesses lobbied for the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005” setting the stage for the sub-prime market and all these foreclosures! While there are many directions to point fingers; the bottom line, folks, is that the bill is coming due. We ate, and now we must pay. Thank God, the TSP turned down that REIT. The most important battle will be if they can restore our civil liberties… Tip off Posted July 8, 2008 9:57 AM
• My hats off to Pelosi and Read, they have brought a lot of change since they inherited Congress so those who voted Democratic have been justly rewarded. Can't wait for Osama to win his 1 bill $100B per year in new taxes to the global poverty fund run by the UN is just a start. In 2 years your money in TSP will be just like Rhodesia with another black president worthless!!! Dan ketter Posted July 7, 2008 3:47 PM