Q. For a typical retiree (or near retiree), we utilize the TSP funds as well as outside investments. Do you have a rule of thumb regarding how many funds to own for diversification, i.e., how many is too many? Also, what are the best asset allocation calculators to use (free, of course)? Lastly, for the G Fund, in an asset calculator, since that is unique to the TSP, what proxy ticker should I use to represent the G Fund in overall asset allocation evaluations?
Browsing: L Fund
Q. I’ll be eligible to retire in September 2021 when i reach age 56 years and 2 months, and have 34 years of service. I’ve been investing money in my TSP since I started working for the federal government, and I switched all of my TSP funds into the L2020 as suggested when the life cycle funds began. I never really thought about it until this year, so I probably won’t retire when i’m eligible since I’ll only be 56. At least that’s what I’m thinking now because I’ll have two kids in college. I know that in 2020, they’re…
Q. I’m 27 years old and work for the U.S. Postal Service. I have about $10,000 saved in my TSP, and I just moved most of my savings from the G Fund into 70 percent C fund and 30 percent split between the G, I and S funds. At my age, is this a smart move for the long run?
Q. The L funds such as L2020 are structured toward retirement dates such as 2020. After that date, your funds are moved to the L Income Fund. I’ve seen you mention several times that if you can’t decide how to allocate your funds after retirement that we should consider the fund that matches our life expectancy. Can you explain the reasoning behind this a little more? If I am currently 57, retired and my life expectancy is 85 years of age, are you saying I should consider the L2040 or L2050 funds?
Q. I am 38 years old with 15 years of government service as a GS-14. I hope to work no more than 20-22 more years, assuming age 60 will give me the maximum benefit. My TSP allocations are where my concerns lie. I am blindly diversifying my account as follows: G Fund at 10 percent; F Fund at 0 percent; C Fund at 50 percent; S Fund at 30 percent; I Fund at 10 percent. I have no allocations in the L Fund. I am contemplating having future earnings go into the L2040 fund. Would you recommend this, and how much…
Q. It is often emphasized how important asset allocation is to the success of one’s portfolio, saving or retirement plan; and you emphasize in your “Retirement University” presentations the importance of having an asset allocation on the “efficient frontier.” Are calculators or programs available that allow do-it-yourselfers to determine a risk efficient asset allocation for their portfolio? Do you think the asset allocations in the TSP’s L Funds (i.e., L Income to L 2050) are on the efficient frontier for their level of expected return?
Q. I have accumulated a tidy sum in my TSP investment account. It is diversified between stocks and the G Fund. With the volatile market, should I take money from the stock fund and move it all to the secured G Fund? I would still contribute while working. I plan to retire in two and a half years at age 66½ and worry about having this money secured for retirement.