Q. When I retired 5 years ago, I transferred all of my savings to the L Fund that was close to my life expectancy. I’ll be required to start withdrawing the RMD in 2018. With all of the uncertainty going on with the stock market, should I move the money I have left to the safe G Fund or stick with the L Fund for the long run?
A: If the money you have in the account will meet your withdrawal needs for life, without any growth, then you should move it all to the G Fund. If you’ll need growth in the account to support your withdrawal needs, you’ll have to stick with the option that will provide that growth. I expect that, at your age, you’re already in a fairly conservative L Fund allocation. If so, you’ve already avoided much of the risk of loss from market declines.