Moving to the L Fund


Q. I have recently retired ,and my TSP is allocated in the F, C, G and I funds. Should I now move all of them to the L Fund at once or in increments? What percentage should I be withdrawing if life expectancy is 20 years?

A. If you’re not sure what to do, I suggest that you invest your account all at once in the L Fund that most closely corresponds to your life expectancy. The maximum sustainable withdrawal rate will depend upon how you manage your account in the future, but in something between 3 and 7 percent should be reasonable. If you’re not a competent investment manager, you may want to consider guaranteeing your income by purchasing a fixed immediate annuity.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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