Let's start by looking at the big picture
2024 was a banner year for U.S. stocks. The S&P 500 surged 23%, with a whopping 57 record highs along the way
This marked the best back-to-back years since 1997 and 1998. Because of this, the TSP stock funds had an exceptional year as well
For TSP investors, the results were impressive. Here's a look at how the stock fund
funds performed in 2024. The C Fund and S funds had the largest gains, while other funds had more
modest returns. All of the L funds had positive returns as well. Now, let's talk about the two-year
streak we've just had. The 2023 annual TSP returns were even better with the C, S, and I funds leading
the way for the stock funds. All of the L funds had solid gains as well. Not all of the news is good
however, December 2024 was mostly losses for the TSP funds. The C fund dropped by 2.39%, the S fund lost
7.05%, and the I Fund was down 2.83%. Only the G fund had a positive return last month. Even with
these drops, the overall performance for 2024 was stellar. How have TSP investors been reacting
to the outstanding TSP fund performance over the last two years? After two years, after two years
of solid returns, federal employees have gradually shifted their TSP fund investment allocations
At the end of 2022 33 of TSP asset allocation was going into the G fund 28 was allocated to the C fund and 8 was in the S fund At the end of 2023 it had shifted more towards the stock funds Investments allocated to the G fund fell to 27
and more was shifted to go into the C and S funds. As of November 2024, the latest available data that we have
asset allocation among TSP investors shifted even more away from the G fund and into the C and S funds. C fund allocation grew to 36.1% and S fund allocation grew to 10.6%
The outstanding stock market performance has been welcome news for federal employees saving for retirement. The best evidence of this is the rapid growth of the number of TSP participants who have $1 million or more in their TSP accounts. At the end of 2020
there were 76,889 TSP millionaires, but that number has grown to 155,334 as of September
2024, the latest available data we have. For anyone wondering what it takes to build this
amount of wealth in their TSP accounts, a common trend among TSP millionaires is that they
have invested over a long period of time. The average years of contributions among TSP millionaires
was 28.35 years as of September 2024, so the growth has been generated over the course of a federal
career by regularly investing in the TSP. See the link in the description below for our article
with more information. Thanks for watching. Don't forget to like this video and subscribe to the
channel. Happy New Year everyone