Move to G Fund or L Fund?

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Q. I am a 66-year-old CSRS retiree with approximately $200,000 in the F Fund. I have no debts, and will likely leave my Thrift Savings Plan untouched until I am forced to start withdrawing it. I am concerned that when interest rates start to rise, bonds will drop and the value of my TSP account may fall. I am considering moving my TSP into the G Fund. However, since I don’t plan on a withdrawal soon, should I put move it to one of the L funds?

A. The G Fund is the only TSP fund that does not pose the risk of loss.

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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

1 Comment

  1. Additionally, you might want to take a look at this article when leaving money in Thrift Savings Plan upon retiring:

    http://www.washingtonpost.com/blogs/federal-eye/wp/2013/01/15/tsp-used-for-debt-ceiling

    I work with postal retirees and I assist them in the rollover of funds. Not because of the website posting per se, but many other reasons in which puts them in more control of their TSP monies.

    Contact me if you want to know more. My name is Gina @ gsongboss67@yahoo.com

    Thank you.

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