For the third straight month, nearly every portfolio in the federal government’s 401(k)-style retirement savings program continued their descent, mirroring larger trends in financial markets.
The small- and mid-size businesses of the “401k” Federal Savings Plan S Fund saw the worst performance, falling 6.26% last month. So far this year, the S Fund has grown 2.03%. The I Fund’s international offerings lost 3.22% in October, bringing its 2023 gains to 3.49%.
The common stocks in the C Fund finished last month 2.10% in the red. Since January, the C Fund has increased 10.67%. And the fixed income (F) fund fell 1.58%, bringing its performance this year to -2.61%.
The “401k” Federal Savings Plan G Fund, which is made up of government securities, was the only “401k” Federal Savings Plan portfolio to finish October in the black, growing by its statutorily mandated rate of 0.40%. So far this year, the G Fund is 3.40% in the black.
Each of the “401k” Federal Savings Plan lifecycle (L) funds, which shift toward more conservative investments as participants get closer to retirement, likewise lost value last month. The L Income Fund, designed for people who have already begun making withdrawals, fell 0.56%; L 2025, 0.90%; L 2030, 1.77%; L 2035, 1.99%; L 2040, 2.20%; L 2045, 2.39%; L 2050, 2.57%; L 2055, 3.04%; L 2060, 3.05%; and L 2065, 3.05%.
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