Q. I was in the 2010 Fund. Then when that date came and went, I was at a loss as to which fund to go to. There is the plain L, and then it goes up from there. I plan on retiring in or about 2013. Which fund should I be in? One that is aggressive yet safer than the one above the 2010 fund? A. I can’t tell you which L Fund you should be in, but once the L 2010 fund “matured,” your money was moved into the next more conservative fund: the L Income fund. Now the…
Browsing: L Funds
Q: I am a retired executive currently working as a re-employed annuitant during parts of the year. I always look forward to reading your Federal Times column. I have a question regarding some advice you provided in the Dec. 13th edition. You indicate that it’s best to use the Thrift Savings Plan’s L Funds as planning guides. You recommend choosing the L Fund that corresponds to your life expectancy and apply its beginning asset allocation to your account, then periodically adjusting the mix. I had always heard that you should choose the L Fund that most corresponds to the date…
Q: I just read the “lost decade” article in Money Matters and I am wondering why you did not mention the L Funds. I have all my Thrift Savings Plan funds allocated to L Funds as recommended to me since I am in my 10-year window of retirement. Is that a mistake? Should I also diversify into the other five individual funds? A: I’m not a fan of the L Funds, but I can’t say that using them is a mistake. The problem I have with them is that it’s difficult to know whether the robotic allocation shifts they make are…