L Funds and TSP


Q. You state that anyone who invests in the TSP should invest in the fund that corresponds most to their life expectancy if not sure of how to allocate among the C, S, I, F, G funds. Does this hold true if I retire at 55 and access the funds in my TSP immediately? After all, L2050 fund is for those that will access their TSP in 2045 or later, at least that’s what it says on the TSP site.

A. My recommendation is inconsistent with the TSP’s, so you’ll have to choose one or the other. My recommendation assumes that you’d like your account to support the maximum lifetime standard of living possible from your account. The TSP’s recommendation appears to consider only the time between now and the beginning of your withdrawals. My recommendations also considers the amount of time the withdrawals will be expected to last – assumed to be as long as you live.


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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