Q. I have six years in the Navy. I understand I can pay back/down those years for maximum retirement benefit. I’m 48 years old, have no savings and started this job to get on with planning for the future. I am a GS-7, step 1. I’m planning on contributing at least 5 percent a month of my pay, and I understand the Veterans Affairs Department will match 4 percent. I’d like to retire at 62ish. Here is a copy of my latest leave and earnings statement: ———————————————————————- Pay Period: 12-22 Name: ALLEN, TROY J Gross Pay 1,586.40 Federal Tax Amt Withheld 179.76…
Browsing: L Fund
Q. I have 10½ years of combined federal and military service and roughly $15,000 in my Thrift Savings Plan, 100 percent allocated to G Fund. I am 33 years old and nowhere near retirement. I plan on working another 22 years for the federal government and do not plan to start using my TSP until I am in my 60s. What would be the best way to allocate my contributions? I’ve had a few friends tell me to shift over to L funds. A. If you’re not sure what to do, then I recommend that you use the L Fund that most…
Q. With the looks of it, the economy has been doing better. The “fiscal cliff” is concerning me. My wife and I both have about seven years and both put 10 percent into the L2040 Fund. I was thinking of moving both to a safer fund (G or F) for a while until a deal is in place and the economy is safe and stable. I was thinking of doing this to potentially avoid another year like 2008, or something like that if a deal is not made with the president and Congress. What are your thoughts of doing something like this…
Q. I will be taking the early-out offered by the Postal Service. I am a 54-year-old CSRS employee of 35 years. I have a Thrift Savings Plan account. Please give your opinion on the best option such as taking the MetLife annuity, joint with spouse, level or increasing, cash refund compared with simply leaving the money in TSP and getting monthly payments either by specific amounts or increasing by life expectancy. I don’t quite understand the difference in the two options. A. There is no “best” choice. Using your money buy an immediate annuity guarantees income for life. You give…
Q. I’ve been retired from the post office for a couple of years now and have left all of what’s in my Thrift Savings Plan account in the G Fund. I won’t be forced to take the required minimum distribution until about six years from now. Since I’m not an expert at investing in all of the different funds, I was wondering: Would it be a good idea to transfer my money into one of the L Funds until I have to start taking withdrawals? A. Yes.
Q. I retired from the Air Force in 2004 after 30 years of service. I was rehired into the civil service ranks in November 2004 and immediately started investing into the Thrift Savings Plan’s L2020 account. I just turned 58 and plan on retiring when I hit 60, maybe 62 if my health holds up. How long should I keep my investments in the L2020 account? As I get closer to retirement date, should I move it from L2020 to one of the individual funds? A. If you’re not sure about what to do, to support you goals with a…
Q. I plan on retiring in the next two years. I will be 53. My money is spread out among all the funds, including the L Fund. I was advised to transfer all my money to the G Fund about a year before retiring as it’s the safe fund. Is this good advice? A. It can’t be good advice if it doesn’t rigorously consider your particular set of goals, resources and constraints. What works well for one person might produce disaster for another.
Q. In an April 2011 answer to a question about the lifecycle funds, you noted that the Thrift Savings Plan suggests choosing the L Fund that most closely matches your retirement date and putting 100 percent of your money there. You said you recommend investing in the L Fund that most closely matches your life expectancy rather than your retirement date. Why? Isn’t this going to put your money at risk when you’re older and can least afford to be risky with your money? A. This is my default recommendation, and it recognizes the fact that, in most cases, your financial…
Q. I’ve worked for the Food and Drug Administration for 18 years. I started investing in the Thrift Savings Plan about 10 years ago and don’t plan on retiring until 2030. I’m investing 15 percent right now, and I plan on doing more. I’ve been advised to invest in the L Funds. But lately I’ve been looking at the F, C, S and I funds, which are doing so much better than the L. I want to switch to the one that’s earning the most. Isn’t the L fund for those who are ready to retire within a couple of years? I’m…
Q. My husband and I are both federal employees. My husband is 30 and has 10½ years. He contributes to the G Fund and, from what I can tell from our leave and earnings statement, it is 5 percent. I am 28 and have three years. I also have a 5 percent contribution to G Fund per our LES. What fund do you recommend we contribute to? We would like to start now to ensure we have a decent retirement. Do you recommend us investing in the new Roth? A. You should contribute as much as you can afford to…