Moving TSP funds


Q. I had all my funds in the L Fund most closely related to my retiring date until this afternoon. After learning that my overall value dropped by $5,000, I got worried and moved everything to the G Fund. Then I spoke to a friend who explained to me the $5,000 loss was really only a decrease in value, and not real money. Now that I better understand I would like to move back to the L Fund. Will I be penalized or will my funds be significantly effected because i did this switch?

A. With all due respect, it sounds like whether or not you will be penalized for reallocating your TSP funds might be the least of your problems – you will not. I think the more important cause for concern is the way you are managing your money! This doesn’t sound like a reliable investment management approach for such an important asset. You may want to find some competent help.


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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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