Q. I am wondering how Lifecycle Funds value are determined. For instance, the L2050 Fund is less expensive than the L2020 Fund and the L2050 is the more aggressive fund meaning it has a higher percentage of C, I and S. I don’t understand how this works. Additionally, I tabulated each of the L funds by taking the percent allocation multiplied by the cost of the fund and it is less expensive for me to allocate the same percentages of any of the L funds (outside of L2050) directly versus the subsequent L fund. For example, as of this [April…
Browsing: Thrift funds
Q. I am a federal employee under CSRS, eligible to retire with max benefits in 2024 (41 years and 11 months) at the age of 60. My TSP distribution is 50 percent L 2020, 15 percent C fund, 15 percent S and 15 percent I funds. At the close of 2018 my balance was $340,295, which reflects a loss of $47,753. Should I move everything to the L Fund?
Q. Currently I have 90 percent in the S fund and 10 percent in the G Fund. Obviously, I’ve lost a lot of the gains we made $57,000 to be exact.I know we are due for a correction, but I have no idea what to do. Move to the L Fund? Move 50 percent to C? If I do those now, do I lose? I retire in 6 years 10 months.
Q. My TSP is in the G, F, C, S and I Funds. Would it be a bad time to move it to the L2020 fund, considering the loss that has occurred during this month?
Q. I have been a federal employee for about a decade now and have seen my earning ebb back and forth. What would you recommend doing to preemptively guard earnings for the potential upcoming recession that is making headlines? Which fund is typically the safest?
Q. I recently googled, “What is a CG Fund?” I clicked on the first topic that came up, which had your short article about how you have attended a U.S. Postal Service retirement seminar not sponsored by the USPS. Your writing made me raise my eyebrows as I had attended a similar seminar two months ago, which at the end she also threw the “pitch” of the CG Fund and how it can double our TSP and will never lose the initial investment no matter what happens to the market. Is there any way that you may forward me any…
Here’s a pop-quiz question for you: How many partial lump-sum withdrawals are you allowed to take from your Thrift Savings Plan account during your lifetime? Go ahead, write down your answer. Everyone knows that the answer is one, right? In fact, that is the stated limit in every TSP publication that I can remember seeing. This limit is also one of a number of common reasons that TSP participants decide to roll their account assets from the best retirement investment vehicle in the United States into an individual retirement account after retiring. But, while the TSP’s withdrawal restrictions are inconvenient,…
Q. I am 66 and plan to retire from the federal government on Dec. 31. Is there any way for me to withdraw a portion of my thrift funds in order to outright purchase a home without taking a really bad hit with regards to income tax?