Owning multiple L Funds


Q. My current TSP allocation is 75 percent in L2020 and 25 percent in L2030, with my biweekly payroll contributions split 50-50 between the two. I can’t remember when I opened the L2020, but when I realized 2020 was coming much sooner, I opened up the L2030 so my TSP account would continue to earn money once the L2020 flips to the L Income fund. I’m in my early 50s, so I’m really not sure when I’m going to retire. Should I keep going like this, or move everything to L2030?

A. If you’d like to try to maximize the lifetime income that can be safely drawn from your TSP account, and you won’t or can’t do the work necessary to determine the best investment strategy, I suggest that you invest your TSP balance in the L Fund that most closely corresponds to your life expectancy. It’s not the best you can do, but it’s the safest thing to do without more information.


About Author

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.

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