Browsing: L Fund

Q. I am 47 years old with 23 years in federal law enforcement. I will be eligible for retirement in two years at 49 years old, in the year I turn 50, so I will be eligible to draw from my TSP without penalty immediately. I have over $500,000 in my TSP. My decision to draw will be based on possible employment opportunities and income post-retirement. But if possible, I would like to minimize my impact on the balance. I know you have previously advised placing money in the L Fund closest to your life expectancy if you are unsure…

Q. I am 52 years old and I am currently a government employee. I have approximately $38,000 in my TPS, all in the G Fund and I plan to retire in 10 years. I also have money coming in from an active-duty military retirement. I was thinking of transferring the entire balance to the L2030 to try and maximize growth over time. Is this a good decision? A. It’s impossible to say from the information you’ve provided here. If you don’t know what to do, I think you allocate your TSP money into the L Fund that most closely corresponds to your…

Q. I have often read you stating to put your TSP in the L Fund most closely matching your expected life expectancy if you are not able to analyze the market (which I am not able nor willing to hire someone to do that). I am a former FERS employee, retired at age 56. I am now 59 and I only have $120,000 in my TSP and hope to wait until age 70 (or just leave it alone for my sons), if possible. I wondered if the L Fund most matching your life expectancy is suggested for a current employee…

Q. I am wondering how Lifecycle Funds value are determined. For instance, the L2050 Fund is less expensive than the L2020 Fund and the L2050 is the more aggressive fund meaning it has a higher percentage of C, I and S. I don’t understand how this works. Additionally, I tabulated each of the L funds by taking the percent allocation multiplied by the cost of the fund and it is less expensive for me to allocate the same percentages of any of the L funds (outside of L2050) directly versus the subsequent L fund. For example, as of this [April…

Q. Do you see any advantage in periodically transferring funds from my 403b to my TSP? The 403b is invested in a life-cycle fund from Vanguard, so the fees I assume are pretty low. The only advantages I see are I currently have access to funds if needs in my TSP as I was a law enforcement officer and have provision to access this as I retired with over 20 years in federal law enforcement. But I don’t plan to withdraw for a long time (I’m 53) and perhaps the TSP fees are even lower then Vanguards? I assume transfers are…

Q. What is your opinion of the so called “bucket” investment strategy for retirement in the TSP, with a “now,” “soon” and “later” allocation? The now being a three-year time frame in the G Fund for a safe flow of income, the soon 3-5 year in the L-Income that would be less conservative and the later maybe investing in the Lifecycle Fund corresponding to life expectancy for more aggressive growth? I realize the allocations would have to be updated regularly. With such a strategy, would it be best to make adjustments monthly, quarterly or annually?

Q. I only did four years in the Marines and got out back in ’08. I totally forgot I had a TSP until I got an annual update for it in the mail. All my money is in the G Fund and only has a little over $8,000 in it. Should I leave it alone? Roll it into an IRA? Try and work with it and spread the money in there to the other funds? If so, which ones? I’m 32 years old, and still have plenty of years of being a wage slave ahead of me. The only thing…

Q. I am 66 years old and am retired. I have around $400,000 in my TSP. I am not planning to withdrawal until 2022. Currently, I have G Fund, C Fund, I Fund, etc. I am not sure if I should move all to G Fund or L2020.

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