The L Fund


Q. I retired three years ago and put my TSP funds in the L fund. I will be 70 years old in November.  Should I move my money into the L 2020 fund, since I noticed that the rate of return is significantly higher and I will not be needing to take money from the TSP until I am 70 ½ years old?

A. It’s a mistake to say that the rate of return “IS significantly higher.” It may have been significantly higher than some other return over some particular past period of time, but that is not that same at all as “IS higher than.”

If you aren’t sure what to do, and want to maximize the recurring withdrawal rate that your account will support over your lifetime, I suggest that you invest your account in the L Fund that most closely corresponds to your life expectancy.


About Author

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

Leave A Reply