Q. I’m a current CSRS employee considering retirement after 34 years of service. With a $300,000 balance in my TSP account, I’m currently risk adverse and for the past two years been in the L Income Fund. I have read many of the questions about investing and found a familiar reply below. “I suggest that you invest your TSP balance in the L Fund that most closely corresponds to your life expectancy.” I am 61 years of age and hopefully will live until my early 80s. Isn’t the L2030 fund too risky for someone of my age?
Browsing: L Fund
Q. My current TSP allocation is 75 percent in L2020 and 25 percent in L2030, with my biweekly payroll contributions split 50-50 between the two. I can’t remember when I opened the L2020, but when I realized 2020 was coming much sooner, I opened up the L2030 so my TSP account would continue to earn money once the L2020 flips to the L Income fund. I’m in my early 50s, so I’m really not sure when I’m going to retire. Should I keep going like this, or move everything to L2030?
Q. I am currently serving in the Army. I have completed five years of service and have been contributing 5 percent into my traditional TSP account. One-hundred percent of my contributions are going into the G Fund. What fund or percentage of funds would you recommend? I am already a staff sergeant and will serve at least 20 years. I am also aware of the changes to TSP matching for military members and the reduction to retirement percentage that will happen if I elect to defer my legacy plan.
Q. I will not be retiring until somewhere between December 2018 and December 2019, but am thinking ahead and trying to plan how one should withdraw money from TSP in retirement if you want to use the monthly payment option. Can you specify that the monthly payment all comes from one particular fund? Does it make sense to put how much you expect to withdraw in a particular year in the L income fund and draw only from that fund and then adjust what you have in that fund annually? I would like to protect myself from market volatility but…
Q. I’ve been a GS employee going on six years, and I currently invest 20 percent of pay into TSP. I had been putting my funds into the L Fund 2020 (70 percent) and G Fund (30 percent), and just changed to the L fund 2040 (85 percent), C Fund (10 percent) and G Fund (5 percent). Is this a good way to invest my funds or should I place all of it in the L Fund 2040? I only have just over $24,000 in my TSP account. I’m 49 years old and probably plan to work at least another 15 years.
Q. I am currently investing in the TSP L Fund 2020 but still have money I previously invested sitting in C, F and G funds. Should I be transferring the individual funds into my current L Fund 2020 where I am now allocating 100 percent of my funds?
Q. I’m late out the gate with my TSP account, however I’m excited that the C Fund is on a gaining streak right now. I used to have my 5 percent going to the G Fund, then whatever total amount I had in the G Fund I switched it completely over to the C Fund. I also added another 1 percent, so now I have a total of 6 percent of my paycheck going into the C Fund. I’m only a Grade 7 so finances are a little tight, and I’m sure they are going to be even tighter when it comes time…
Q. Why do the L Funds have a greater percentage in the I Fund versus the S Fund? The I Fund 10-year composition is 3.20 percent versus S Fund’s 8.03 percent. What got my curiosity is the year-to-date returns: I Fund at 1.42 percent versus S Fund at 15.27 percent.
Q. I just turned 60 and eligible for a one-time TSP withdrawal. My financial adviser is pressuring me now to do so. TSP says don’t do it! Where can I find an independent consultant to advise me what to do? Naturally, any financial adviser will recommend a TSP withdrawal so they can get their hands on my money. When I don’t know what to do or get conflicting advice, I don’t do anything! Is that the right approach? I would rather make an educated decision one way or the other.
Q. I recently started a job as a civilian with the federal government. I’m 46 years old and I’m using the TSP retirement system. What fund should I use to maximize my money while adding 5 percent to the G fund. Should I change the allotment to another fund on the list?