Federal employees, grappling with the profound financial stress of an ongoing government shutdown, received a dose of positive—if somewhat ironic—news in October. Their Thrift Savings Plan (TSP) stock funds continued their upward trend for the third consecutive month, posting solid gains even as paychecks remain frozen.
As reported by FEDweek, the C, S, and I funds all finished the month in the black. This growth, while a welcome sight for your retirement balance, is happening against a backdrop of extreme personal financial uncertainty, making a long-term strategic plan more critical than ever.
October 2025 Performance Breakdown
The market gains in October were driven by several factors, including signs of a slowing labor market that prompted the Federal Reserve to lower interest rates. This move helped boost bond prices and fueled investor optimism in stocks.
Here’s a look at the fund performance for October 2025:
- C Fund (Large-Cap Stocks): +2.34%
- I Fund (International Stocks): +2.13%
- S Fund (Small-Cap Stocks): +1.16%
- F Fund (Bonds): +0.62%
- G Fund (Govt. Securities): +0.36%
Year-to-date, the results are even more striking, with the I Fund leading the pack at an impressive +28.01% gain, and the C Fund following with a strong +17.49% return. The Lifecycle (L) Funds, which are a mix of all five core funds, also saw gains ranging from 0.87% for the L Income Fund to 2.11% for the more aggressive L 2055-2075 funds.
The Glaring Disconnect: Your TSP vs. Your Paycheck
The current situation highlights a harsh reality for federal employees. While your retirement account is benefiting from market gains, your immediate financial life is under direct threat from the shutdown. This disconnect serves as a powerful lesson: market performance and personal financial security are not the same thing.
A rising TSP balance is encouraging, but it does not pay your mortgage, buy groceries, or cover car payments today. This crisis underscores the absolute necessity of having a comprehensive financial plan that separates your long-term retirement goals from your short-term emergency needs.
This is precisely where expert guidance becomes essential. Internal Benefit Advisors specializes in helping federal employees navigate this exact territory. They are dedicated to educating you on the intricacies of your benefits and building a resilient financial strategy that can withstand political and economic uncertainty.
Here’s how they can help you bridge the gap between today’s crisis and tomorrow’s retirement:
- Building a “Shutdown-Proof” Plan: They can work with you to establish a robust emergency fund, so you are never forced to consider a high-cost TSP loan or hardship withdrawal to cover your bills during a furlough.
- Strategic TSP Management: Are your current TSP allocations still aligned with your long-term goals after this year’s market run-up? They provide an objective analysis to ensure your portfolio matches your risk tolerance and retirement timeline, not just the latest market trend.
- Comprehensive Retirement Education: They provide clear, unbiased education on your entire federal benefits package—including your FERS/CSRS pension, FEGLI, and FEHB—to ensure you are making informed decisions to protect your family’s future.
The current shutdown is a painful reminder that you cannot control when you get paid. But you can control how you plan.
Take the definitive step to build a financial plan that is as strong as your retirement account. Contact Internal Benefit Advisors today for a confidential consultation.
References
- FEDweek. “TSP Stock Funds Scare Up More Gains in October.”
- Federal Retirement Thrift Investment Board. (2025). Monthly Returns.
- Government Executive. “Growth slowed in most TSP funds in October.”
Internal Benefit Advisors. Retrieved from https://internalbenefitadvisors.com
