Q. I am scheduled for full/voluntary retirement in February 2023. I currently have my TSP contribution at 100 percent in the L2030 fund. I am getting a little nervous about the volatility of the market, so I am inclined to do something like reallocate to 50 percent L2030 and 50 percent G Fund just to try and mitigate any potential losses. Of course, I would like to increase my current $253,000 balance, but wouldn’t be averse to it not increasing that much by retirement. Conversely, I would hate to see a loss on what I have and not be able to recover by my retirement date, should I decide to retire in 2023. There is also a possibility that I may decide to keep working until I choose to start drawing Social Security at 65, which wouldn’t be until 2028. In that case, it may be more prudent to stay in the L2030, assuming it would have time to recover if the market tanked soon. I realize there are a lot of IF’s but just thought I would ask your opinion … start reallocating now or stay fully in the L2030?
A. I didn’t recommend your investment strategy, and so can’t tell you how to manage it. If you don’t know what to do, and want the maximum possible lifetime standard of living that your account can provided, I recommend that you invest your account in the L Fund that most closely corresponds to your life expectancy and keep it there.
