Nearly Every TSP Fund Lost Money in September

Nearly every TSP fund lost money in September as broader markets faced increased volatility.

The S Fund was hit hardest, falling 3.86%, followed by the F Fund at -2.59% and the I Fund at -2.30%. The C Fund fell 0.35%. Pasted text

Even the TSP’s Lifecycle Funds, which are designed to become more conservative as participants approach retirement, finished September in negative territory. Pasted text

Why retirees should pay attention

When you’re still working, you may have years—or decades—to recover from a major market downturn.

Retirement changes that equation.

If you’re already taking withdrawals from your TSP, market losses can mean selling investments while their values are down. And being in a Lifecycle Fund doesn’t mean your retirement is completely protected from market declines.

The lesson: look at what your retirement depends on

Your TSP may contain several different funds, but that doesn’t necessarily mean every part of your retirement will react differently when markets become volatile.

September is a good reminder to ask:

How much of my retirement is still exposed to stocks and bonds?

And:

Would diversifying a portion outside traditional markets make sense for me?

For some retirees, that conversation may include physical gold and silver as part of a broader diversification strategy.

You don’t have to move your entire TSP. The goal is to understand your exposure—and decide how much market risk you’re comfortable carrying in retirement.