Q. I am 56 with 30 years of federal service, planning to retire in 2020. Currently I invest in L2020. I don’t know if it’s too late to attempt higher returns, maybe moving to L2030. What do you advise?
A. First, if you don’t know how your account should be invested, then I suggest that you invest your balance in the L Fund that most closely corresponds to your life expectancy. Second, don’t expect those “better” returns in the short-run since the stock component of the L Funds is hovering around record highs and the bond component could suffer from rising interest rates.