Q. I understand how and why the L funds such as the 2020, 2030 and 2040 adjust themselves as you get closer the target date. I don’t understand why the L Income Fund adjusts itself, since isn’t it the consistency of the Income Fund that retirees are after?
A. The stated goal of the L Income Fund is “to achieve a low level of growth with a high emphasis on preservation of assets.” I can’t tell you why they decided to use this method to achieve this goal, since it isn’t necessary, but that’s the way it is. Remember that you don’t have to use the L Income Fund. You can apply any static allocation you like using the five basic funds.