G vs. L Fund


Q. I am going to retire this year. I have almost $500,000 in my TSP in the 2020 L Fund. Should I just move the money into the G fund and be content with the 2 percent growth?

A. I can’t possibly tell you whether 100 percent G Fund is the best allocation for your TSP account based on the information you’ve provided. Kind of like telling me that you’re not feeling well and asking me if you should have surgery. It depends.

I can tell you that you should find some contentment in knowing that the G Fund offers the highest risk-adjusted expected rate of return of any of the TSP’s funds.


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 fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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