G Fund vs L2020


Q. I am 66 years old and am retired. I have around $400,000 in my TSP. I am not planning to withdrawal until 2022. Currently, I have G Fund, C Fund, I Fund, etc. I am not sure if I should move all to G Fund or L2020.

A. There is not nearly enough information here – your age, retired state, TSP balance and expected year of your first withdrawal – to responsibly figure out how best to allocate your TSP money. Anyone who tells you otherwise is either a fool or a fraud.

If this is all I have to go on, and I assume that you want the money to support the highest lifetime standard of living possible, I’ll recommend that you allocate your money into 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 fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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