January was a good start for the year for Thrift Savings Plan returns. All funds had positive returns for the month, as well as positive returns for the past 12 months.
The “never have a bad day” G Fund had a 0.24 percent return in January. The largest returns came from the C Fund at 2.37 percent and the I Fund at 2.41 percent.
At the end of 2010, the L-2010 Fund was retired and rolled into the L-Income fund, and the L-2050 Fund started Feb. 1. (The TSP website explains how the roll-down works.)
Tom Trabucco, director of external affairs for the Federal Retirement Thrift Investment Board, reminded employees that their separation of service and the date they begin to draw down on their TSP funds are two different dates. That is especially true now when “most of the people retiring are still CSRS employees, so may not need their TSP money right away since it’s not an integral part of their retirement as it is for the FERS people,” Trabucco said.
Trabucco also reminded federal employees that the TSP is a long-term retirement plan, not for intra-day trading. Once they separate from service, people are free to take their TSP funds and it wherever they want.
“An awful lot decide to leave it in,” Trabucco said.