Lifecycle funds

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Q. What would be the affect of putting 20 percent of TSP into each lifecycle fund? It seems very diverse, but then it doesn’t.

A. The effect would be a needlessly complex TSP account with an allocation that is somewhere in the range of the L 2030 Fund, almost impossible to analyze in any useful way, and is no better diversified than any one of the individual L Funds.

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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.

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