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.
Browsing: L Fund
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?
Q. My TSP account distribution percentages are G: 45; F: 5; C: 31; S: 5; and I: 14, all totaling $556,000 and $10,000 in a Roth. The TSP return from the past 12 months has been -0.29. I’m thinking about retiring this year at the age of 62, and I need $25,000 from the accounts plus increases based on inflation for 30 years. I plan to keep TSP in retirement. What changes in allocations do I need to meet these needs? Do I change to L2040?
Q. I’ve heard that if you have several years before you plan on withdrawing money from you TSP account, that you can invest in a stock fund (such as the C Fund). I have between nine to 11 years before retiring. I already have $400,000 in the L 2040. Would it be a safe bet for the next five years to invest in the C Fund?
Q. I’m 52 years old and have my entire account in the L2050 account. When withdrawals are made, it wouldn’t take an equal percentage out of each fund that comprises the L fund — or would it?
Q. Suppose a TSP participant passes away and listed on their TSP-3 beneficiary form that there are allocations of 34 percent to the spouse, 33 percent to the daughter, and 33 percent to the son. Does the spouse have a beneficiary participant account (BPA) with the 34 percent allocation in the age appropriate L Fund, and do the children each receive a lump-sum payment of 33 percent?
Q. I plan to retire under FERS in three years at age 65 with 10 years of federal service. My TSP balance is $130,000. I also have a rollover IRA with our financial adviser from a past employer with a value of $150,000. Would it make sense to roll over my IRA into a TSP now? I’m paying a 1.25 percent annual management fee on the $150,000 and earning about 4 percent annually. A steady 3-4 percent return would be my goal within TSP, as I am getting close to retirement. Would the age-appropriate L Fund be my best bet?
Q. What indicators should I look for to move into a lower-risk fund? I’m new to investing and I see that the rate for the fund I’m currently in has dropped a few points. It currently has the highest rate.