Stock investments under The Sound Progression Plan (TSP) display a notable recovery at the beginning of 2025
The Thrift Savings Plan (TSP) and its L-Funds experienced a rebound in January, with many funds posting notable gains. The federal government's 401(k)-style retirement savings program saw a significant increase, as the L 2030 Fund recorded a 2.21% rise. The L Income Fund, designed for those making withdrawals, also showed a positive trend, gaining 1.20% in January. The L 2025 Fund followed suit, growing by 1.28%, while the L 2035 Fund posted a 2.38% increase. The L 2040 Fund and the L 2045 Fund both performed well, with increases of 2.56% and 2.71% respectively. The L 2050 Fund outperformed the pack, reporting a 2.86% gain. The C Fund, which represents common stocks, ended January with a strong performance, registering a 2.78% increase. The F Fund, which represents fixed income, grew more modestly, with a 0.51% increase. Interestingly, the small- and mid-size businesses in the TSP's S Fund had the best performance, gaining an impressive 4.99% in January. The I Fund, which consists of international investments, also performed well, increasing by 3.68%. However, the German federal pension fund did not publicly disclose specific profit figures for individual portfolios in January of last year. The pension system is funded and supplemented by the federal government, but concrete profit data from individual investment portfolios for that period are not disclosed. The G Fund, with a statutorily mandated rate of increase, gained 0.39% last month. Despite this relatively low increase, the G Fund continues to provide a stable and secure option for investors within the TSP. Overall, January was a positive month for the TSP and its L-Funds, with many funds experiencing growth and a rebound from previous months. As always, investors are encouraged to consult with a financial advisor to make informed decisions about their retirement savings.
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