07/22/2026
If you’ve ever looked at your TSP options and wondered what all those letters mean, you’re not alone. Each TSP fund category plays a different role in your retirement strategy — from stability to growth to diversification.
We’re sharing a simple breakdown of the G, F, C, S, I, and L Funds to help you feel more confident about your choices. Smart planning starts with understanding your options.
G Fund: Principal Protection & Interest Stability
• Backed by U.S. Government
• Designed to preserve principal while earning interest
• Doesn’t experience market losses when markets are volatile or declining
F Fund: “Fixed-Income” or Bonds
• When interest rates fall → May experience gains resulting from rising bond prices
• Conservative compared to stock funds but not risk-free
• Interest rates rise – bond prices can decline
• Increases volatility
C Fund: Large U.S. Companies in the S&P 500
• Common Stock Index
• Tracks performance of large U.S. companies
• Historically has provided long-term growth
• Can experience swings
S Fund: Small or Mid-sized U.S. Companies, not in S&P 500
• May grow faster during expansions
• Tend to experience sharper declines
• Complements C Fund
• Used in conjunction with C Fund
I Fund: International Exposure
• Large & Mid-cap companies
• Diversification
• Currency fluctuations & Geopolitical risks → short-term volatility
Contact us to learn more!
(P.S. Join us for our upcoming webinar tomorrow where we’ll walk through practical strategies, common pitfalls, and the decisions that matter most for federal employees preparing for retirement. Register at https://bfgkc.com/event/what-to-do-with-tsp.)