Moving to a lower-risk fund


Q. What indicators should I look for to move into a lower-risk fund? I’m new to investing and I see that the rate for the fund I’m currently in has dropped a few points. It currently has the highest rate.

A. You’re not asking the right questions … kind of like asking, “What indicator should I look for to tell me when to get off the train?” That decision depends on a lot of other factors that must be known, quantified, analyzed and considered. Absent that kind of information and effort, I recommend that you choose the L Fund that most closely corresponds to your life expectancy and invest your TSP proceeds in that until you can do the work necessary to figure out exactly how your account should be invested to support your plans.


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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 and view his blog at

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