Q. I was forced to liquidate almost all of my savings, stocks, etc., five years ago to assist a family member with some much-needed medical financial assistance. I am 54 years old, and plan on working for an additional 14 years. I’m currently putting $350/pay period into TSP with contribution allocations in L2030 (10%), C Fund (45%) and S Fund (45%). Balances are $13,662, $2,730 and $10,986, respectively. Every opportunity I get, I increase my contribution. Here’s my question: Based on the short amount of time I have left to retire (14 years), is my allocation percentage into the three funds…
Browsing: L Fund
Q. I am planning to begin taking monthly payments from my L2030 fund at around age 60. I am 52, currently with $1.1 million in invested assets. I generally subscribe to your theory of “pick the L Fund closest to your life expectancy,” minus 10 years in my case. For example, if I expect to live to 2050, I would choose the L2040 fund (based on my risk tolerance). Given the above, at age 60, let’s say I want to exhaust my L fund within 30 years – can you give me a ballpark percentage per year that I could…
Q. You’ve mentioned in the past that if a person does not know which funds are best to invest their TSP money, they should invest in the Lifecycle fund that closely matches their life expectancy. I’m 58, retired CSRS and currently in the L2030. I plan to start generating a monthly income stream from the $470,000 balance and begin payments of 3.5 percent of the balance to meet expenses. When commencing monthly payments, do you recommend keeping the funds in the corresponding L Fund or should I look at a more conservative strategy during the draw-down phase?
Q. I’m a 65-year-old retiree under CSRS, have about $175,000 in TSP and do not plan on withdrawing from TSP until age 70. As a conservative investor, I currently have money in the G, C and I Funds hoping to have some money in a safer fund and some in which I can see a better return. With the current market downturn and the future predictions, I’m unsure where I should be investing. I don’t want to put everything in the G Fund, but I don’t want to put too much of my money at too high a risk. Any…
Q. The continued drop of the stock market (and therefore the C, S and I Funds) is scaring me and I want to preserve the gains I had in 2017. I just reallocated my TSP balance to C, S and I Funds on January 29, moving from an L Fund allocation. I change my allocation every year in January, but in hindsight it was a bad decision this time. If I have, say, $200,000 today, will an interfund transfer to the G Fund show my TSP balance to be $200,000 tomorrow? I want to stop my TSP balance from dropping…
Q. Should I move all my old money from a life-cycle fund to the G Fund in light of the government shutdown?
Q. I have a pension plan with a former company. I just received a notice from them that I can leave it in place to take when I reach retirement age or roll a lump sum payment in to another eligible retirement account (my TSP). I am a FERS employee and will retire at 62 (in 12 years). If I leave it in place to take after I retire, I estimate the amount to be about $450 a month. Should I leave it where it is or think about rolling it over in to my TSP where I am in…
Q. You state that anyone who invests in the TSP should invest in the fund that corresponds most to their life expectancy if not sure of how to allocate among the C, S, I, F, G funds. Does this hold true if I retire at 55 and access the funds in my TSP immediately? After all, L2050 fund is for those that will access their TSP in 2045 or later, at least that’s what it says on the TSP site.
Q. I am 61 years of age and a CSRS annuitant for the past last seven years. My wife is also a CSRS annuitant (age 55). We are both in the L2020 fund. With our joint annuities we are financially whole. My question is, we are contemplating transferring 50 percent of my 2020 fund (approximately $150,000) and 50 percent of her L2020 fund (approximately $70,000) to the L2030 fund. We are both in good health. Please comment on the transfer proposal and the amounts.
Q. I regrettably moved all of my TSP savings to the G fund in 2013. Should I put all or some back into an L fund or other fund now? I am within 3-5 years from retirement.